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July 16, 2020 -- Altrinsic Global Advisors, LLC today announced the appointment of Sara Sikes as Head of Client Experience. In this newly created role, Sikes will provide strategic direction and oversight to the firm's client service, communications, and marketing efforts.

The Altrinsic International Equity Composite gained 13.8% during the second quarter, as measured in U.S. dollars. By comparison, the MSCI EAFE Index and the MSCI All Country World ex-U.S.Index gained 14.9% and 16.1%, respectively, led by richly valued technology stocks. Measures to reopen economies, increased optimism surrounding a vaccine, and hopes for a V-shaped recovery have been supportive, but the primary driver of the rally in risky assets has been the announcement of extraordinary fiscal and monetary stimulus, amounting to 29% of global GDP (Table 1).

Quarterly Letter

The Altrinsic Global Equity Composite gained 14.6% during the second quarter.  By comparison, the MSCI World Index gained 19.4% as measured in U.S. dollars, led by U.S. equities (S&P 500 +20%) and richly valued tech stocks (NASDAQ +30.6%). Measures to reopen economies, increased optimism surrounding a vaccine, and hopes for a V-shaped recovery have been supportive, but the primary driver of the rally in risky assets has been the announcement of extraordinary fiscal and monetary stimulus, amounting to 29% of global GDP (Table 1).

Decisive global fiscal and monetary policy responses to COVID-19 drove a sharp re-rating in asset prices in the second quarter, including emerging market equities that gained 18%, paring their losses from the prior quarter.  The impact of the unprecedented fiscal expansion, monetary easing, and widespread suspension of personal and commercial loan repayments will take years to unwind and leaves emerging market policy makers little room for error going forward.  This crisis will almost certainly inject an additional facet into debates around global trade as governments try to protect and str

The first quarter of 2020 was one of the worst on record, and it certainly felt like it.  In a matter of weeks, a virus that likely emerged from a wet market in Wuhan, China, brought the global economy to a halt.  A Saudi-Russian induced oil price war exacerbated the decline.  Only cash, select government bonds, and gold provided refuge from the carnage.  There is tremendous uncertainty in the near term, as policymakers inject wartime stimulus into economies, creating a bridge until health risks subside and economic activity recovers.  Opportunities are emerging amid the associated uncertai

The first quarter of 2020 was one of the worst on record, and it certainly felt like it.  In a matter of weeks, a virus that likely emerged from a wet market in Wuhan, China, brought the global economy to a halt.  A Saudi-Russian induced oil price war exacerbated the decline.  Only cash, select government bonds, and gold provided refuge from the carnage.  There is tremendous uncertainty in the near term, as policymakers inject wartime stimulus into economies, creating a bridge until health risks subside and economic activity recovers.  Opportunities are emerging amid the associated uncertai

In the ten years since the global financial crisis, emerging markets have faced significant challenges, including a collapse in commodity prices, QE-induced financial market volatility, Russia’s annexation of Crimea, and corruption scandals in Brazil.  Largely, their people, institutions, and governments rose to meet those challenges and charted a path forward.  With this COVID-19 outbreak, East Asian emerging market countries, such as South Korea and Taiwan, are managing the crisis with competence and efficiency.

2019 was an extraordinary year for most asset classes, and global equities in particular, with the MSCI World Index delivering its third best gain in the past 30 years.  Markets climbed a wall of worry, receiving a boost from the January reversal of central bank policy coupled with an easing of two significant risk factors faced at the beginning of the year:  Sino-US trade tensions and Brexit.  International equities delivered solid returns but were outpaced by US equities and highly priced technology stocks, which led the advance.  Unlike the poor market sentiment entering 2019, current bu

Quarterly Letter

2019 was an extraordinary year for most asset classes, and global equities in particular, with the MSCI World Index delivering its third best gain in the past 30 years.  Markets climbed a wall of worry, receiving a boost from the January reversal of central bank policy coupled with an easing of two significant risk factors faced at the beginning of the year:  Sino-US trade tensions and Brexit.  US equities and highly priced technology stocks led the advance.  Unlike the poor market sentiment entering 2019, current bullishness has reached six-year highs, while other measures of risk, includi

Global markets ended the year on an optimistic note, as synchronized policy easing and an imminent trade deal between the U.S. and China boosted equities, commodities, and emerging market currencies.  Monetary easing and an increasing amount of fiscal stimulus across developing markets boosted cyclical stocks, despite persistent downgrades to global GDP growth expectations. The signing of the phase one deal between the U.S. and China is a positive milestone, but complex, ideological differences between the two countries mean a lot of work lies ahead for subsequent negotiations.

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