THE FUND:

Lien Viet Bank runs annual trainings to build employee skills.

In July, the fund fell 4.4% in SEK during the month compared to the fund’s benchmark index MSCI FMxGCC Net TR (SEK) which was unchanged. Just over 3% of the underperformance could be derived from the fund’s lack of holdings in Argentina, the largest index country. Following a sharp fall in prices in the first half of the year, Argentinean stocks rose by nearly 12% during July. The fund also lost relative returns on its exposure in Egypt, where the fund’s sub-portfolio fell during the month by 5%. Despite the continued decline in Pakistan during July, the fund’s Pakistani holdings were the single most contributing factor to the relative return.

Among the individual holdings, Pakistani IT company Systems rose 13% during the month. A significant proportion of the company’s sales originate from exports, which means that the company benefited from the weaker Pakistani Rupee. The fund’s holding in Bangladesh Active Fine Chemicals also performed well, rising by 26% when it was highlighted by a major international brokerage company. Our positions in Systems and Active Fine are two examples of the Fund’s smaller longer-term positions in smaller companies. In Systems, Tundra owns a total of about 7% of the company and we have been shareholders for over 3 years. In Active Fine, Tundra owns a total of about 3% of the company and we have been a major shareholder for almost five years. Sometimes it takes time for new companies to break through and attract interest from other foreign investors but when it happens, the rewards can be significant. In the losing positions, we had a number of holdings show declines of approximately 10%. Among the slightly larger positions, Vietnam’s Lien Viet Post Bank fell 13% during the month in what is still a very weak market for smaller Vietnamese companies. The fund did not make any major changes in the portfolio during the month. No companies were divested or added.

THE MARKET:

MSCI FMxGCC Net TR (SEK) remained unchanged during the month. The loser of the year so far, Argentina, rose nearly 12%, contributing more than 3% in absolute terms, while other markets continued to be burdened by weak sentiment for emerging and frontier markets. However, the development was considerably calmer during July than in previous months and none of the major markets outside of Argentina were down more than 5% in USD. The election in Pakistan came out significantly better than expected. Our main concern was a hung parliament but Pakistan Tehreek-e-Insaaf (PTI) appears to be able to reach a majority without being forced into an alliance with any of the opposition parties. This increases the likelihood of the country being able to take much needed tough political decisions ahead. A more detailed discussion on Pakistan’s elections and its results is included in the monthly comment for the “Tundra Pakistan Fund.”

ESG ENGAGEMENT:

No new companies were added to or divested from the fund in July.

DISCLAIMER:
Capital invested in a fund may either increase or decrease in value and it is not certain that you be able to recover all of your investment. Historical return is no guarantee of future return. The state of the origin of the Fund is Sweden. This document may only be distributed in or from Switzerland to qualified investors within the meaning of Art. 10 Para. 3,3bis and 3ter CISA. The representative in Switzerland is ACOLIN Fund Service AG, Affolternstrasse 56, CH-8050 Zurich, whilst the Paying Agent is Bank Vontobel Ltd, Gotthardstrasse 43, CH-8002 Zurich. The Basic documents of the fund as well as the annual report may be obtained free of charge at the registered office of the Swiss Representative.