For the year ended December 31, 2025, the Fund returned 29.65% (Institutional Class) while its benchmark returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, Taiwan was among the Fund’s top contributors to relative performance due to stock selection including Taiwan Semiconductor Manufacturing Co. which benefited from its dominant position in the AI chip market. Conversely, China was the largest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. South Africa and Brazil were detractors due to stock selection when both countries were impacted by macroeconomic headwinds and tariff concerns in the period.

On a sector basis, stock selection in information technology, including Tencent Holdings, was the biggest contributor, helped by positive investor sentiment toward AI. Conversely, consumer discretionary detracted the most due to stock selection while materials detracted due to an underweight allocation and industrials detracted due to stock selection.

For the year ended December 31, 2025, the Fund returned 29.39% (Investor Class) while its benchmark returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, Taiwan was among the Fund’s top contributors to relative performance due to stock selection including Taiwan Semiconductor Manufacturing Co. which benefited from its dominant position in the AI chip market. Conversely, China was the largest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. South Africa and Brazil were detractors due to stock selection when both countries were impacted by macroeconomic headwinds and tariff concerns in the period.

On a sector basis, stock selection in information technology, including Tencent Holdings, was the biggest contributor, helped by positive investor sentiment toward AI. Conversely, consumer discretionary detracted the most due to stock selection while materials detracted due to an underweight allocation and industrials detracted due to stock selection.

For the year ended December 31, 2025, the Fund returned 23.15% (Institutional Class) while its benchmark returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in Brazil and South Korea and an underweight allocation in Saudi Arabia were among the top contributors to the Fund’s relative performance. An off-benchmark allocation to the U.S., including Micron Technology, also supported gains as an increase in demand for AI-related high-bandwidth (HBM) chips drove up volumes and margins. In contrast, stock selection in China/Hong Kong, India and South Africa detracted. In China, Meituan was hurt by margin erosion due to intensive competition in food delivery and Legend Biotech, a commercial-stage biopharma company, was impacted by concerns over competition from new entrants and alternative therapies. In addition, stocks in India were impacted by weakening confidence and concerns over nominal GDP growth.

On a sector basis, stock selection in consumer staples, including JD Health International, a Chinese online health care platform, contributed the most. A zero allocation in energy and an overweight allocation to information technology also contributed. Conversely, stock selection in consumer discretionary, financials and health care detracted.

For the year ended December 31, 2025, the Fund returned 22.89%, (Investor Class) while its benchmark returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in Brazil and South Korea and an underweight allocation in Saudi Arabia were among the top contributors to the Fund’s relative performance. An off-benchmark allocation to the U.S., including Micron Technology, also supported gains as an increase in demand for AI-related high-bandwidth (HBM) chips drove up volumes and margins. In contrast, stock selection in China/Hong Kong, India and South Africa detracted. In China, Meituan was hurt by margin erosion due to intensive competition in food delivery and Legend Biotech, a commercial-stage biopharma company, was impacted by concerns over competition from new entrants and alternative therapies. In addition, stocks in India were impacted by weakening confidence and concerns over nominal GDP growth.

On a sector basis, stock selection in consumer staples, including JD Health International, a Chinese online health care platform, contributed the most. A zero allocation in energy and an overweight allocation to information technology also contributed. Conversely, stock selection in consumer discretionary, financials and health care detracted.

For the year ended December 31, 2025, the Fund returned 13.76% (Institutional Class) while its benchmark returned 19.09%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in India, including CarTrade Tech, was the biggest contributor to the Fund’s relative performance. Stock selection in Taiwan, including Gold Circuit Electronics and Elite Material, was also a large contributor, helped by demand for high-speed printed circuit boards and raw materials for the global AI buildout. In contrast, the biggest detractor was stock selection in China/Hong Kong, including Legend Biotech Corp., a commercial-stage biopharma company, which was impacted by concerns over competition from new entrants and alternative therapies. Stock selection in Korea also detracted, including Hugel, a leading botulinum toxin company.

On a sector basis, stock selection in consumer discretionary, including YDUQS Participacoes SA, a Brazilian on-campus and distance-learning education company, was the biggest contributor, helped by a weaker U.S. dollar, improving consumer spending and expectations of a rate cut cycle commencing in 2026. Stock selection and an overweight allocation to information technology was also a big contributor. Conversely, stock selection in industrials, communication services and health care, was the biggest detractor.

For the year ended December 31, 2025, the Fund returned 13.57% (Investor Class) while its benchmark returned 19.09%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in India, including CarTrade Tech, was the biggest contributor to the Fund’s relative performance. Stock selection in Taiwan, including Gold Circuit Electronics and Elite Material, was also a large contributor, helped by demand for high-speed printed circuit boards and raw materials for the global AI buildout. In contrast, the biggest detractor was stock selection in China/Hong Kong, including Legend Biotech Corp., a commercial-stage biopharma company, which was impacted by concerns over competition from new entrants and alternative therapies. Stock selection in Korea also detracted, including Hugel, a leading botulinum toxin company.

On a sector basis, stock selection in consumer discretionary, including YDUQS Participacoes SA, a Brazilian on-campus and distance-learning education company, was the biggest contributor, helped by a weaker U.S. dollar, improving consumer spending and expectations of a rate cut cycle commencing in 2026. Stock selection and an overweight allocation to information technology was also a big contributor. Conversely, stock selection in industrials, communication services and health care, was the biggest detractor.

For the year ended December 31, 2025, the Fund returned 20.72% (Institutional Class) while its benchmark returned 28.59%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

On a country basis, Taiwan was among the top contributors to the Fund’s relative performance due to stock selection, including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Singapore was also a top contributor due to stock selection as Sea Ltd., an e-commerce and internet platform, performed well, supported by improved consumer sentiment and lower interest rates. Conversely, Japan was the biggest detractor due to stock selection. China also detracted due to an overweight allocation and stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption.

On a sector basis, an underweight allocation in consumer staples and a zero allocation to utilities contributed, while an overweight allocation and stock selection in consumer discretionary detracted. Indian travel company MakeMyTrip, the biggest detractor, underperformed due to weaker than expected revenue growth and flight disruptions by a partner airline.

For the year ended December 31, 2025, the Fund returned 20.59% (Investor Class) while its benchmark returned 28.59%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

On a country basis, Taiwan was among the top contributors to the Fund’s relative performance due to stock selection, including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Singapore was also a top contributor due to stock selection as Sea Ltd., an e-commerce and internet platform, performed well, supported by improved consumer sentiment and lower interest rates. Conversely, Japan was the biggest detractor due to stock selection. China also detracted due to an overweight allocation and stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption.

On a sector basis, an underweight allocation in consumer staples and a zero allocation to utilities contributed, while an overweight allocation and stock selection in consumer discretionary detracted. Indian travel company MakeMyTrip, the biggest detractor, underperformed due to weaker than expected revenue growth and flight disruptions by a partner airline.

For the year ended December 31, 2025, the Fund returned 30.26% (Institutional Class) while its benchmark returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI), and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in China/Hong Kong, including Alibaba Group and Tencent Holdings, was the top contributor to the Fund’s relative performance. Both companies benefited from positive investor sentiment toward AI innovation and growth in their cloud businesses. The top three detractors were India due to stock selection against a backdrop of economic growth concerns, Vietnam due to an off-benchmark allocation and Indonesia due to stock selection.

On a sector basis, stock selection in information technology, including in Taiwan Semiconductor Manufacturing Co., and memory chipmakers Samsung Electronics and SK Hynix, contributed the most. Stock selection in industrials led in part by China names associated with the robotics and green technology industries also contributed. In contrast, communication services detracted due to stock selection while health care detracted due to an overweight allocation and stock selection.

For the year ended December 31, 2025, the Fund returned 30.07% (Investor Class) while its benchmark returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI), and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in China/Hong Kong, including Alibaba Group and Tencent Holdings, was the top contributor to the Fund’s relative performance. Both companies benefited from positive investor sentiment toward AI innovation and growth in their cloud businesses. The top three detractors were India due to stock selection against a backdrop of economic growth concerns, Vietnam due to an off-benchmark allocation and Indonesia due to stock selection.

On a sector basis, stock selection in information technology, including in Taiwan Semiconductor Manufacturing Co., and memory chipmakers Samsung Electronics and SK Hynix, contributed the most. Stock selection in industrials led in part by China names associated with the robotics and green technology industries also contributed. In contrast, communication services detracted due to stock selection while health care detracted due to an overweight allocation and stock selection.

For the year ended December 31, 2025, the Fund returned 30.42% (Institutional Class) while its benchmark returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors.

On a country basis, Taiwan was the top contributor to the Fund’s relative performance due to stock selection, including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Indonesia also contributed due an underweight allocation. In contrast, China was the biggest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. Korea also detracted due to stock selection.

On a sector basis, stock selection in information technology, including Samsung Electronics and SK Hynix, was the biggest contributor, helped by positive investor sentiment toward AI. On the other hand, consumer discretionary and industrials detracted the most due to stock selection while materials detracted due to zero allocation.

For the year ended December 31, 2025, the Fund returned 30.22% (Investor Class) while its benchmark returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. 

On a country basis, Taiwan was the top contributor to the Fund’s relative performance due to stock selection, including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Indonesia also contributed due an underweight allocation. In contrast, China was the biggest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. Korea also detracted due to stock selection. 

On a sector basis, stock selection in information technology, including Samsung Electronics and SK Hynix, was the biggest contributor, helped by positive investor sentiment toward AI. On the other hand, consumer discretionary and industrials detracted the most due to stock selection while materials detracted due to zero allocation.

For the year ended December 31, 2025, the Fund returned 29.93% (Institutional Class) while its primary benchmark returned 31.43%.

China delivered robust returns in 2025, supported in part by easing geopolitical tensions with the U.S. After a challenging start to the year marked by the imposition of punitive U.S. tariffs, bilateral trade agreements in key areas including rare earths and technology signaled a pragmatic approach between the two countries that was welcomed by markets. Performance was further supported by a strong rally in technology and internet stocks. However, the broader economy and earnings growth were hindered by weak consumption and continued sluggishness of the property market.

On a sector basis, stock selection in information technology, including Suzhou TFC Optical Communication, was the largest contributor to the Fund’s relative performance, supported by positive investor sentiment toward artificial intelligence (AI) and AI capital expenditure deployment. Alibaba Group was a significant absolute contributor to performance given positive sentiment towards its AI capabilities. Stock selection in financials, including New China Life Insurance and China Life Insurance, also contributed, aided by attractive valuations and by structural changes as policy measures encouraged household savings to move toward pension and investment products.

On the other hand, consumer discretionary stocks, including China’s largest food delivery service provider Meituan, and BYD Co., a globally leading automaker, were the biggest detractors due to stock selection. Earnings across several industries, particularly in e-commerce and autos, were negatively impacted by aggressive competition which eroded profit margins. Relative performance was also negatively impacted by our underweight positions in Tencent Holdings and Alibaba versus the benchmark.

For the year ended December 31, 2025, the Fund returned 29.81% (Investor Class) while its primary benchmark returned 31.43%.

China delivered robust returns in 2025, supported in part by easing geopolitical tensions with the U.S. After a challenging start to the year marked by the imposition of punitive U.S. tariffs, bilateral trade agreements in key areas including rare earths and technology signaled a pragmatic approach between the two countries that was welcomed by markets. Performance was further supported by a strong rally in technology and internet stocks. However, the broader economy and earnings growth were hindered by weak consumption and continued sluggishness of the property market.

On a sector basis, stock selection in information technology, including Suzhou TFC Optical Communication, was the largest contributor to the Fund’s relative performance, supported by positive investor sentiment toward artificial intelligence (AI) and AI capital expenditure deployment. Alibaba Group was a significant absolute contributor to performance given positive sentiment towards its AI capabilities. Stock selection in financials, including New China Life Insurance and China Life Insurance, also contributed, aided by attractive valuations and by structural changes as policy measures encouraged household savings to move toward pension and investment products.

On the other hand, consumer discretionary stocks, including China’s largest food delivery service provider Meituan, and BYD Co., a globally leading automaker, were the biggest detractors due to stock selection. Earnings across several industries, particularly in e-commerce and autos, were negatively impacted by aggressive competition which eroded profit margins. Relative performance was also negatively impacted by our underweight positions in Tencent Holdings and Alibaba versus benchmark.

For the year ended December 31, 2025, the Fund returned 29.15% (Institutional Class) while its benchmark returned 35.34%.

China delivered robust returns in 2025, supported in part by easing geopolitical tensions with the U.S. After a challenging start to the year marked by the imposition of punitive U.S. tariffs, bilateral trade agreements in key areas including rare earths and technology signaled a pragmatic approach between the two countries that was welcomed by markets. Performance was further supported by a strong rally in technology and internet stocks. However, the broader economy and earnings growth were hindered by weak consumption and continued sluggishness of the property market.

On a sector basis, stock selection in information technology was the largest contributor to the Fund’s relative performance. ACM Research, a manufacturer of hi-tech equipment for the semiconductor industry, benefited from strong demand driven by the global rollout of artificial intelligence infrastructure. Stock selection in energy also contributed meaningfully, benefiting from global growth in renewable projects.

Conversely, stock selection in communication services and industrials detracted. Yangzijiang Shipbuilding, an industrials company, declined early in 2025 amid a short-term slowdown in order bookings related to increased geopolitical tensions with the U.S.

For the year ended December 31, 2025, the Fund returned 28.83% (Investor Class) while its benchmark returned 35.34%.

China delivered robust returns in 2025, supported in part by easing geopolitical tensions with the U.S. After a challenging start to the year marked by the imposition of punitive U.S. tariffs, bilateral trade agreements in key areas including rare earths and technology signaled a pragmatic approach between the two countries that was welcomed by markets. Performance was further supported by a strong rally in technology and internet stocks. However, the broader economy and earnings growth were hindered by weak consumption and continued sluggishness of the property market.

On a sector basis, stock selection in information technology was the largest contributor to the Fund’s relative performance. ACM Research, a manufacturer of hi-tech equipment for the semiconductor industry, benefited from strong demand driven by the global rollout of artificial intelligence infrastructure. Stock selection in energy also contributed meaningfully, benefiting from global growth in renewable projects.

Conversely, stock selection in communication services and industrials detracted. Yangzijiang Shipbuilding, an industrials company, declined early in 2025 amid a short-term slowdown in order bookings related to increased geopolitical tensions with the U.S.

For the year ended December 31, 2025, the Fund returned 1.67% (Institutional Class) while its benchmark returned 4.29%.

India underperformed Asia in 2025, weighed down by foreign institutional investor outflows amid concerns about growth prospects and generally expensive valuations. Geopolitical tensions, including India’s continued purchases of Russian oil and ongoing negotiations related to U.S. tariffs, also remained a negative overhang on the market.

On a sector basis, stock selection in financials, including leading non-banking financial services companies Shriram Finance Ltd. and Bajaj Finance Ltd., was the biggest contributor to the Fund’s relative performance. The sector performed well, supported by interest rate cuts and expectations of increased business activity. Consumer discretionary also contributed due to stock selection as did utilities due to an underweight allocation.

Conversely, stock selection in information technology was the biggest detractor. Infosys and Tata Consultancy Services, both IT and consulting services firms, were impacted by negative sector sentiment amid concerns the global boom in artificial intelligence may disrupt the sector. The materials sector detracted due to an underweight allocation, as did industrials, due to stock selection.

For the year ended December 31, 2025, the Fund returned 1.55% (Investor Class) while its benchmark returned 4.29%.

India underperformed Asia in 2025, weighed down by foreign institutional investor outflows amid concerns about growth prospects and generally expensive valuations. Geopolitical tensions, including India’s continued purchases of Russian oil and ongoing negotiations related to U.S. tariffs, also remained a negative overhang on the market.

On a sector basis, stock selection in financials, including leading non-banking financial services companies Shriram Finance Ltd. and Bajaj Finance Ltd., was the biggest contributor to the Fund’s relative performance. The sector performed well, supported by interest rate cuts and expectations of increased business activity. Consumer discretionary also contributed due to stock selection as did utilities due to an underweight allocation.

Conversely, stock selection in information technology was the biggest detractor. Infosys and Tata Consultancy Services, both IT and consulting services firms, were impacted by negative sector sentiment amid concerns the global boom in artificial intelligence may disrupt the sector. The materials sector detracted due to an underweight allocation, as did industrials, due to stock selection.

For the year ended December 31, 2025, the Fund returned 22.86% (Institutional Class) while its benchmark returned 25.05%.

Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

Consumer discretionary, information technology and industrials were the top three contributors to the Fund’s relative performance due to stock selection as Japanese corporates delivered resilient earnings and investors benefited from corporate governance changes which continued to incentivize more shareholder-friendly capital allocation, including stock buybacks and dividend increases. NEC, an IT company, and Marubeni Corp., a global trading company involved in energy, metals, power, and IT, were among the top performers as global demand related to the roll-out of artificial intelligence (AI) equipment and infrastructure increased.

In the second half of the year, the market was impacted by political change and policy uncertainty following the election of Prime Minister Sanae Takaichi. The top three detractors were consumer staples, financials and communication services due to stock selection. The largest detractors included Recruit Holdings, a human resources (HR) company, and Tokio Marine, a global insurer. As some areas of the market increasingly exhibited exuberance related to AI themes, we avoided stocks driven by price momentum and focused on companies with strong fundamentals.

For the year ended December 31, 2025, the Fund returned 22.76% (Investor Class) while its benchmark returned 25.05%.

Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

Consumer discretionary, information technology and industrials were the top three contributors to the Fund’s relative performance due to stock selection as Japanese corporates delivered resilient earnings and investors benefited from corporate governance changes which continued to incentivize more shareholder-friendly capital allocation, including stock buybacks and dividend increases. NEC, an IT company, and Marubeni Corp., a global trading company involved in energy, metals, power, and IT, were among the top performers as global demand related to the roll-out of artificial intelligence (AI) equipment and infrastructure increased.

In the second half of the year, the market was impacted by political change and policy uncertainty following the election of Prime Minister Sanae Takaichi. The top three detractors were consumer staples, financials and communication services due to stock selection. The largest detractors included Recruit Holdings, a human resources (HR) company, and Tokio Marine, a global insurer. As some areas of the market increasingly exhibited exuberance related to AI themes, we avoided stocks driven by price momentum and focused on companies with strong fundamentals.

For the year ended December 31, 2025, the Fund returned 27.06% (Institutional Class) while its benchmark returned 28.59%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

On a country basis, Japan and Taiwan were the top contributors to the Fund’s relative performance due to stock selection, including Marubeni, a Japanese trading company that has a strong focus on improving its return on equity and shareholder returns. Conversely, China/Hong Kong was the largest detractor, due to stock selection primarily among consumer discretionary companies where intense competition pressured margins amid weak consumption. South Korea also detracted due to stock selection; however, an overweight allocation to the country, intended to capture attractively priced, above-market dividend-yielding stocks, contributed to absolute returns.

On a sector basis, stock selection in information technology, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics and NEC Corp., contributed the most, helped by positive investor sentiment toward AI. Stock selection in industrials, including Marubeni and Dongfang Electric, a Chinese power company, also contributed to returns. Stock selection in financials contributed positively, including Hana Financial Group, AIA Group and Ping An Insurance. In contrast, consumer staples, including Wuliangye Yibin in China and Asahi Group in Japan, detracted due to an overweight allocation and stock selection. Materials detracted due to stock selection and real estate detracted due to an overweight allocation and stock selection.

For the year ended December 31, 2025, the Fund returned 26.88% (Investor Class) while its benchmark returned 28.59%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

On a country basis, Japan and Taiwan were the top contributors to the Fund’s relative performance due to stock selection, including Marubeni, a Japanese trading company that has a strong focus on improving its return on equity and shareholder returns. Conversely, China/Hong Kong was the largest detractor, due to stock selection primarily among consumer discretionary companies where intense competition pressured margins amid weak consumption. South Korea also detracted due to stock selection; however, an overweight allocation to the country, intended to capture attractively priced, above-market dividend-yielding stocks, contributed to absolute returns.

On a sector basis, stock selection in information technology, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics and NEC Corp., contributed the most, helped by positive investor sentiment toward AI. Stock selection in industrials, including Marubeni and Dongfang Electric, a Chinese power company, also contributed to returns. Stock selection in financials contributed positively, including Hana Financial Group, AIA Group and Ping An Insurance. In contrast, consumer staples, including Wuliangye Yibin in China and Asahi Group in Japan, detracted due to an overweight allocation and stock selection. Materials detracted due to stock selection and real estate detracted due to an overweight allocation and stock selection.

For the year ended December 31, 2025, the Fund returned 27.53%, (NAV) and 28.37% (Market Price) while its benchmark, the MSCI Emerging Markets Index, returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, Taiwan was among the top contributors to the Fund’s relative performance due to stock selection including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Conversely, China was the largest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. South Africa and Brazil were detractors due to stock selection when both countries were impacted by macroeconomic headwinds and tariff concerns in the period.

On a sector basis, stock selection in information technology, including Tencent Holdings, was the biggest contributor, helped by positive investor sentiment toward AI. Conversely, consumer discretionary detracted the most due to stock selection, while industrials detracted due to stock selection and materials detracted due to an underweight allocation.

For the year ended December 31, 2025, the Fund returned 30.78% (NAV) and 31.82% (Market Price) while its benchmark returned 35.64%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive overall gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, India was the top contributor to the Fund’s relative performance due to an underweight allocation as the market was impacted by negative investor sentiment related to concerns over economic growth prospects and geopolitical tensions. Saudi Arabia contributed due to an underweight allocation and Peru contributed due to an overweight allocation and stock selection, including Compania de Minas Buenaventura, a metals mining company which gained from strong earnings and high prices in key metals. In contrast, South Africa was the biggest detractor due to stock selection. Indonesia detracted because of an overweight allocation amid a backdrop of political instability while Poland detracted due to stock selection as InPost, a logistics company, was impacted by concerns over profitability. Thailand also detracted due to stock selection.

On a sector basis, an underweight allocation and stock selection in utilities was the biggest contributor, followed by stock selection in information technology as Samsung Electronics and SK Hynix, leading manufacturers of memory chips outperformed, amid the rapid global roll-out of AI infrastructure. An underweight allocation to energy was also a contributor. Conversely, stock selection in industrials was the biggest detractor, followed by health care and consumer discretionary, including Eclat Textile, a Taiwanese sports apparel maker, due to an overweight allocation.

For the year ended December 31, 2025, the Fund returned 25.68%, (NAV) and 25.83% (Market Price) while its benchmark returned 34.36%.

2025 marked the first time in five years that emerging markets equities outperformed U.S. stocks supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, stock selection in Brazil and South Korea and an underweight allocation in Saudi Arabia were among the top contributors to the Fund’s relative performance. An off-benchmark allocation to the U.S., including Micron Technology, also supported gains as an increase in demand for AI-related high-bandwidth (HBM) chips drove up volumes and margins. In contrast, stock selection in China/Hong Kong and South Africa detracted, and stock selection and an overweight allocation to India detracted. In China, Meituan was hurt by margin erosion due to intensive competition in food delivery and Legend Biotech, a commercial-stage biopharma company, was impacted by concerns over competition from new entrants and alternative therapies. In addition, stocks in India were impacted by weakening confidence and concerns over nominal GDP growth.

On a sector basis, stock selection in consumer staples, including JD Health International, a Chinese online health care platform, contributed the most. A zero allocation in energy and stock selection and an overweight allocation to information technology also contributed. Conversely, stock selection in consumer discretionary, financials and health care detracted.

For the year ended December 31, 2025, the Fund  returned 29.97%, (NAV) and 30.91% (Market Price) while its benchmark, the MSCI All Country Asia ex Japan Index, returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI) and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors.

On a country basis, Taiwan was the top contributor to the Fund’s relative performance due to stock selection, including Taiwan Semiconductor Manufacturing Co., which benefited from its dominant position in the AI chip market. Indonesia also contributed due an underweight allocation. In contrast, China was the biggest detractor due to stock selection in areas including e-commerce where intense competition eroded margins and as the broader economy was hindered by weak consumption. Korea also detracted due to stock selection.

On a sector basis, an underweight allocation to consumer staples was the biggest contributor. Stock selection in information technology, including Samsung Electronics and SK Hynix, was also a top contributor, helped by positive investor sentiment toward AI. On the other hand, consumer discretionary and industrials detracted the most due to stock selection while materials detracted due to zero allocation.

For the year ended December 31, 2025, the Fund returned 30.51% (NAV) and 32.05% (Market Price) while its benchmark returned 33.02%.

Asian equities delivered strong returns, outperforming U.S. stocks in 2025. Performance was supported by a favorable macro environment, positive investor sentiment toward artificial intelligence (AI), and easing geopolitical tensions. North Asia markets helped drive gains, as Taiwan and South Korea benefited from their global dominance in AI-related semiconductors. Korean equities also gained from market-friendly governance reforms and a cyclical revival in heavy industrial sectors.

On a country basis, the top contributors to the Fund’s relative performance were stock selection in Taiwan and China/Hong Kong, where Alibaba Group and Tencent Holdings benefited from positive investor sentiment toward AI innovation and growth in their cloud businesses. The top three detractors were India due to stock selection against a backdrop of economic growth concerns, Vietnam due to an off-benchmark allocation and Indonesia due to stock selection.

On a sector basis, stock selection in information technology, including in Taiwan Semiconductor Manufacturing Co., and memory chipmakers Samsung Electronics and SK Hynix, contributed the most. Stock selection in industrials, led in part by China names associated with the robotics and green technology, also contributed. In contrast, communication services detracted due to stock selection while health care detracted due to an overweight allocation and stock selection.

For the year ended December 31, 2025, the Fund returned 29.85%, (NAV) and 30.21% (Market Price) while its benchmark returned 31.43%.

China delivered robust returns in 2025, supported in part by easing geopolitical tensions with the U.S. After a challenging start to the year marked by the imposition of punitive U.S. tariffs, bilateral trade agreements in key areas including rare earths and technology signaled a pragmatic approach between the two countries that was welcomed by markets. Performance was further supported by a strong rally in technology and internet stocks. However, the broader economy and earnings growth were hindered by weak consumption and continued sluggishness of the property market.

On a sector basis, stock selection in information technology, including Suzhou TFC Optical Communication, was the largest contributor to the Fund’s relative performance, supported by positive investor sentiment toward artificial intelligence (AI) and AI capital expenditure deployment. Alibaba Group was a significant absolute contributor to performance given positive sentiment towards its AI capabilities. Stock selection in financials, including New China Life Insurance and China Life Insurance, also contributed, aided by attractive valuations and by structural changes as policy measures encouraged household savings to move toward pension and investment products.

On the other hand, consumer discretionary stocks, including China’s largest food delivery service provider Meituan, and BYD, a globally leading auto maker, were the biggest detractors due to stock selection. Earnings across several industries, particularly in e-commerce and autos, were negatively impacted by our underweight positions in Tencent Holdings and Alibaba versus the benchmark.

For the year ended December 31, 2025, the Fund returned 2.18%, (NAV) and 2.37% (Market Price) while its benchmark returned 4.29%.

India underperformed Asia in 2025, weighed down by foreign institutional investor outflows amid concerns about growth prospects and generally expensive valuations. Geopolitical tensions, including India’s continued purchases of Russian oil and ongoing negotiations related to U.S. tariffs, also remained a negative overhang on the market.

On a sector basis, stock selection in consumer discretionary was the biggest contributor to relative performance. Financials was also a top contributor due to stock selection, including leading non-banking financial services companies Shriram Finance Ltd. and Bajaj Finance Ltd. The sector performed well, supported by interest rate cuts and expectations of increased business activity. Utilities also contributed due to zero allocation.

Conversely, stock selection in information technology (IT) was the biggest detractor. Infosys and Tata Consultancy Services, both IT and consulting services firms, were impacted by negative sector sentiment amid concerns the global boom in artificial intelligence may disrupt the sector. The materials sector detracted due to an underweight allocation and stock selection, as did industrials, due to stock selection.

For the year ended December 31, 2025, the Fund returned 21.79%, (NAV) and 23.01% (Market Price) while its benchmark, the MSCI Japan Index, returned 25.05%. 

Japan’s market showed underlying strength supported by an increase in multiples, generally solid earnings and ongoing corporate reforms.

Consumer discretionary, information technology (IT) and industrials were the top three contributors to the Fund’s relative performance due to stock selection as Japanese corporates delivered resilient earnings and investors benefited from corporate governance changes which continued to incentivize more shareholder-friendly capital allocation, including stock buybacks and dividend increases. NEC, an IT company, and Marubeni Corp., a global trading company involved in energy, metals, power, and IT, were among the top performers as global demand related to the roll-out of artificial intelligence (AI) equipment and infrastructure increased.

In the second half of the year, the market was impacted by political change and policy uncertainty following the election of Prime Minister Sanae Takaichi. The top three detractors were consumer staples, financials and communication services due to stock selection. The largest detractors included Recruit Holdings, a human resources (HR) company, and Tokio Marine, a global insurer. As some areas of the market increasingly exhibited exuberance related to AI themes, we avoided stocks driven by price momentum and focused on companies with strong fundamentals.

For the year ended December 31, 2025, the Fund returned 70.14% (NAV) and 70.38% (Market Price) while its benchmark returned 96.54%.

South Korea was the top performer in emerging markets equities in 2025, surpassing developed markets, including the U.S. While the Korean market was a significant beneficiary of the global artificial intelligence (AI) boom, its strong performance was also due to its capabilities in growing industries like shipbuilding, defense and power infrastructure, as well as competitiveness in key global sectors including autos and biopharmaceuticals. Meaningful progress in corporate governance reforms due to strong policy initiatives also supported investment returns.

On a sector basis, the Fund’s underweight allocation to materials, which was impacted by stagnant demand and capacity, was the largest contributor to relative performance. Stock selection in health care, which also underperformed the broader market, was a top contributor, as was an overweight allocation to utilities which benefited from a strong performance by Korea Electric Power Corp. on significantly improved earnings.