Emerging Markets Equity

Managers

• Professionals’ Financial – Mutual Funds Inc.

The Funds’ Investment Policies are developed by the Fund Manager’s Investment Committee, which meets regularly to make any necessary changes. The Committee includes both internal and external investment experts, as well as representatives of professional association shareholders.

Returns ^*

* Returns for the first and last year are not annualized

* Non annualized return

$1,000 Invested Amount since inception

The FDP Emerging Markets Equity Portfolio, Series A posted a net return of 8.8% for the first six months of 2024, versus 4.5% for 2023. The FDP Emerging Markets Equity Portfolio, Series I posted a net return of 9.5% for the first six months of 2024. The emerging stock markets, as measured by the iShares MSCI Emerging Markets ETF, posted a 10.6% return in Canadian dollars for the first six months of 2024.

The FDP Emerging Markets Equity Portfolio maintains significant exposure to MSCI Emerging Markets stocks and adds relative value through exchange-traded fund (ETF) investments. For the first six months of 2024, the Portfolio underperformed its benchmark index, primarily due to its overweight to Mexico and Brazil. However, the overweight to India and the inclusion of Taiwan Semiconductor Manufacturing Co. (TSMC) ADRs (American depositary receipts) offset some of the losses from the Mexico and Brazil holdings. Elections in Mexico and fiscal negotiations in Brazil caused market volatility.

In the short term, the strong demand for technology components from companies involved in AI development continues to benefit TSMC’s stock and Taiwan’s market more broadly given the significant weight of TSMC in this market.