By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.Stock selection accounted for the portfolio’s outperformance over the fourth quarter, slightly offset by the effects of group allocation. Stock selection in China was the single greatest contributor to this outperformance. For example, shares in dominant Internet search engine Baidu rose robustly over the period as investors continued to react positively to the company’s recent solid quarterly figures and, in particular, higher-than-expected margins and EPS. The market was also enthused by the healthy revenue guidance provided in late October. Shares in homebuilder China Vanke rallied sharply over the period. In addition to an in-line quarter with strong sales, its shares were bid up on speculation that the government is considering stimulus favorable to the country’s property sector. Stock selection was also notably positive within our holdings in South Korea, Hong Kong, and Mexico. In the former, shares in LG Household climbed steeply following the release of solid results, which demonstrated that growth in the cosmetics business and margin expansion in LG’s other businesses remains on track.

By contrast, stock selection weighed on relative performance in India and Taiwan. In the former, Axis Bank and ICICI Bank both moved lower amid concerns about credit quality in the Indian banking sector. However, we believe both banks are well placed to benefit from gradually improving economic conditions in India. Turning to Taiwan, relative performance was hurt by our position in Catcher Technology. The light metal casing specialist, whose products are used in high-end smartphones, tablets, and notebooks PCs, issued such bullish guidance that the market became concerned that it will be extremely difficult to post significant upside results over the near term. As a result, the stock sold off.

In terms of country allocation, the portfolio benefited from an overweight position in Hong Kong, as well as an underweight with respect to Poland. However, these positives were offset by the underweights to both South Korea and Malaysia, which reduced relative returns.