Performance Update
Mondrian Emerging Markets Equity Fund LEMNX Fund Performance ....................................................................................................................... As of December 31, 2018 Month
Quarter
1 Year
3 Years
5 Years
10 Years
Since Inception
Mondrian Emerging Markets Equity Fund
-1.19%
-5.27%
-14.22%
5.61%
-1.32%
5.25%
-0.93%
MSCI EM
-2.66%
-7.47%
-14.58%
9.25%
1.65%
8.02%
-0.36%
Fund Inception November 02, 2007
Returns are annualized for periods over 1 year
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than performance quoted. For performance data current to the most recent month end, please call 888-832-4386. NAV returns since inception of November 2, 2007 when the Fund was the Laudus Mondrian Emerging Markets Equity Fund. The Fund was reorganized into the Mondrian Emerging Markets Equity Fund on September 24, 2018. It continues to be managed in the same way. Gross expense ratio: 0.99%, net expense ratio: 0.92%. Mondrian Investment Partners Limited (the Adviser) has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses from exceeding 0.92% of the Funds average daily net assets until February 28, 2021.
Quarter 4, 2018 - Main Highlights
....................................................................................................................... • The MSCI Emerging Markets index fell 7.5% during the fourth quarter, resulting in a fall for the year of 14.6%. Concerns over the
outlook for global growth, increasing US interest rates, and geopolitical issues including the outlook for US-China trade negotiations all contributed to a very weak quarter for global equity markets. Asia was the worst performing region, down 9.3%, with index heavyweights China (-10.7%), Korea (-13.1%) and Taiwan (-13.7%) all laggards. Latin America was the best performing region, gaining 0.4%, driven by notable outperformance of the Brazil market, up 13.4%, as both equities and the real strengthened following the election of new President Jair Bolsonaro in October. In sharp contrast, Mexican assets declined 18.8% due to concerns regarding the socio-economic outlook under the new left-wing government led by Andres Manual Lopez Obrador (AMLO). EMEA also outperformed, down 4.1%, with Turkey and South Africa outperforming on a relative basis following prior weakness during 2018. Qatar continued to outperform the asset class, gaining 8.4% during the quarter, ending the year as the best performing market in the index, up 29.8%. • During a weak fourth quarter, positive top-down and bottom up allocation contributed to the fund’s outperformance. Overweight
positioning in the outperforming Brazilian and Indian markets made the biggest positive contributions from a top-down perspective. Positive stock selection in China and Korea was offset by disappointing performance in Brazil and Malaysia. At the sector level, positioning in the financial sector and positive stock selection in both the industrials and materials sectors was offset slightly by positioning in the real estate sector and the overweight allocation to the weak health care sector. In a weak year for the asset class our portfolio outperformed on a relative basis. The primary source of relative returns stemmed from the fund’s overweight positioning in the outperforming Brazilian and Indian markets, along with positive stock selection in China, Korea, Russia, and the materials sector. The areas that detracted from performance were stock selection in India and Brazil, an overweight allocation to Turkey, and underweight positioning in the energy sector.
To determine if the Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk, and charges and expenses. This and other information can be found in the funds full and summary prospectus which can be obtained by calling 888-832-4386 or by visiting www.mondrian.com/mutualfunds. Please read the prospectus carefully before investing. Investing involves risk, including the possible loss of principal. International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. The Mondrian Investment Partners Limited Funds are distributed by SEI Investment Distribution Co. (SIDCO). SIDCO is not affiliated with the advisor, Mondrian Investment Partners Limited. MSCI Emerging Markets Index (Net) - A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.Index returns are shown with net dividends reinvested.
