WHERE TECH IS NOW 

• When it comes to technology, there is a differentiation between software and semiconductors 
• We are coming off a trough in semiconductors and particularly in memory and server markets—areas that we believe were under earning 
• This area is being turbocharged by the demand coming from AI because AI is almost 5 to 7 times more memory intensive 
• This has resulted in a massive consolidation in almost every part of the semiconductor ecosystem 

It’s an Evolution, Not a Revolution 

not all valuations are created equally

• Despite the fact that NVDA has gone up substantially in recent times, it’s actually cheaper today than it was 3 years ago.
• That holds true for a whole host of names where the earnings growth and revisions have been positive
• Compare and contrast, for instance, with Walmart where the growth rates are by order of magnitude different for almost similar valuations, in our opinion
• The story is still unfolding, but it is being driven by the quality and quantity of earnings growth

MAG 7 OR FAB 5

OPPOrTUNITY SET IN EMERGING MARKETS REMAINS ATTRACTIVE 

• Largely driven by underperformance, positive change across emerging markets has been largely underappreciated in our view  
• While GDP growth across EM has grown substantially over nearly 15 years, as a percentage of overall world GDP, EM as a percentage of the MSCI ACWI has fallen 
• Contrary to what the consensus may believe,  our view is that EM Index weightings are not representative of their overall market capitalization and economic impact 
• Instead of a rules based approach that underrepresents EM, a GDP or more economic related one would see EM’s share of world indexes grow, in our opinion 

The Index Trend Is Not Your Friend

Source: IMF, Bloomberg. For the periods ending December 2009 and October 2023. You cannot invest directly in an Index. 

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INFORMATION ABOUT BENCHMARKS 

MSCI benchmark returns have been obtained from MSCI, a non-affiliated third-party source. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing, or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. 

Net total return indices reinvest dividends after the deduction of withholding taxes, using (for international indices) a tax rate applicable to nonresident institutional investors who do not benefit from double taxation treaties. 

You cannot invest directly in indices, which do not take into account trading commissions and costs.  

The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries. With 1,376 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. 

The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market. With 609 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in the free float-adjusted market capitalization in the US. 

The MSCI Europe Index captures large and mid cap representation across 15 Developed Markets (DM) countries in Europe*. With 428 constituents, the index covers approximately 85% of the free float-adjusted market capitalization across the European Developed Markets equity universe. 

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