The Altrinsic Emerging Markets Portfolio gained 6.0% during the second quarter in U.S. dollars. By comparison, the MSCI Emerging Markets Index rose 6.3%. Markets benefited from synchronized, albeit modest, global economic growth, strengthening Chinese consumer spending, earnings expectations, and positive portfolio flows into the asset class. A fresh wave of corruption allegations in Brazil and escalating tensions involving North Korea impacted local markets but seemed to be shrugged off by the broader emerging markets.
The Altrinsic Emerging Markets Equity portfolio gained 10.2% during the first quarter of 2017. By comparison the MSCI Emerging Markets Index gained 11.4% in U.S. dollars. Emerging market equities and currencies rebounded strongly during the first quarter, as protectionist policy rhetoric from the Trump administration softened, reform agendas gathered pace in several major emerging countries, concerns about economic stability in China eased, and the outlook for corporate profit growth improved.
Emerging markets delivered strong gains during the third quarter, returning 9.0% as measured by the MSCI Emerging Markets Index in U.S. dollars. The Altrinsic Emerging Markets Equity Composite returned 8.8% during the same period. Stronger earnings growth and higher local bond yields in the emerging markets attracted supportive portfolio flows. Rising commodity prices and a stable U.S.