Nomura Emerging Markets Fund Institutional Class Shares outperformed its benchmark, the MSCI Emerging Markets Index (net), during 1Q26.
Nomura Emerging Markets Fund benefited most from its exposure to South Korean industrial company SK Square Co. Ltd. whose net asset value increased due to its investment in SK Hynix Inc.
Strong demand for memory semiconductors used in AI and computing servers, coupled with constrained supply, contributed to stronger pricing and profitability for SK Hynix Inc. and Samsung Electronics Co. Ltd.
The Fund's underweight position in financials contributed to relative performance, notably the underweight to Indian banks, which declined during the reporting period on concern about growth prospects.
Nomura Emerging Markets Fund currently holds an overweight position in South Korea but remains underweight in China due to macro concerns and India given unattractive valuations.
Donny DBM/iStock via Getty Images
Market review
The Fund's benchmark, the MSCI Emerging Markets Index (net), declined 0.17% in US dollar terms in 1Q26. Early strength gave way to bouts of risk-off sentiment, including a sharp drawdown in March following the outbreak of war with
