3Q 2022 Market Update: Emerging Markets

Oh, my name is Rand Ryan. I'm the head of international equities at Bexar Hanley, global investors and portfolio manager on Barrow Hanley. Emerging market strategy. I'd like to talk briefly about the emerging markets today specifically as it relates to the third quarter of 2022, it was a difficult period for assets. The MSCI Emerging Market index finished down approximately 11 and one half percent, while the Barrow Hanley emerging markets portfolio varied slightly better, finishing only down 9% Macro concerns around surging inflation, higher interest rates and a very strong US dollar continue to weigh on investor mindsets in terms of performance inside of the asset class sectors like consumer discretionary, communication services, information technology and real estate did the worst during the quarter. While sectors like energy, utilities, financials and consumer staples earned significantly better in terms of regions, Asia and EMEA did the worst, while Americas did the best, really driven by a very strong performance from Brazil during the quarter, which had a significant election that served as somewhat of a catalyst. We think going forward there's some very compelling opportunities within the marketplace. We think this environment really favors bottom up. Stock-pickers focused on low valuation stocks with strong balance sheets, high dividend yields, credible management teams that we think can deliver over the cycle. We think for investors that have a 2 to three year time horizon, now is a great time to look at emerging markets. We also feel very confident that our portfolio is very well positioned to exploit these opportunities, and we continue to look for new opportunities as we head towards the end of the year with the dislocations that have occurred. Thank you very much for listening.