International Equity Commentary | Q2 2018

Quarterly Letter

Investment performance was mixed across asset classes during the second quarter against a backdrop of stronger economic growth in the U.S. and China, election uncertainties (particularly in Italy and Mexico), intensifying trade tensions, and central banks' transition away from policy stimulus and quantitative easing (QE) to quantitative tightening (QT).  Energy prices (Brent Crude +14%) and the U.S. dollar (+4.8% on a trade-weighted basis) were standout performers.  Emerging markets, most notably those with external imbalances and/or saddled with meaningful dollar-denominated debt (Brazil and Turkey), were laggards.  The Altrinsic International Equity Portfolio gave up some relative ground during the quarter, declining 2.5%, compared with the 1.2% decline by the MSCI EAFE Index as measured in U.S. dollars.