The Navigator® International Equity/ADR strategy delivered annualized gains of 8.90% gross (6.90% net) vs. the gains of 4.97% for the MSCI All Country World ex-USA Index over the ten years ending June 30, 2020. For the second quarter of 2020, the strategy had a gain of 17.18% gross (16.35% net) vs. the 16.12% gain in the MSCI All Country World ex-USA Index. For the past 10 years ending March 2020, International Equity/ADR is in the top 2% of Morningstar peer group managers in the Foreign Large Blend category. Our positioning in Financials and Information Technology helped relative performance while positioning in Communication Services and Healthcare acted as a drag. Our holdings in SolarEdge Technologies and Lululemon Athletica helped performance in the quarter as positions in China Mobile and Copa Holdings dampened performance. From a country perspective, the portfolio benefited from strong performance in our positions in Israel and Ireland while performance in China and Hong Kong lagged. The value characteristics of the strategy remain more compelling than both its U.S. and international benchmarks as the current P/E of 19.0 is less than that of the S&P 500(23.3) and EAFE(19.91) with similar quality and business growth characteristics.

Top 5 Contributors

Ticker Quarter Ending June 30, 2020 Average Weight (%) Contribution to Return (%)
SEDG SolarEdge Technologies, Inc. 2.09 1.18
LULU Lululemon Athletica Inc 1.92 1.04
SBGSY Schneider Electric SE Unsponsored ADR 2.9 0.89
TOELY Tokyo Electron Ltd. Unsponsored ADR 2.67 0.79
ESNT Essent Group Ltd. 2.13 0.79

Top 5 Detractors

Ticker Quarter Ending June 30, 2020 Average Weight (%) Contribution to Return (%)
CHL China Mobile Limited Sponsored ADR 1.18 -0.3
CPA Copa Holdings, S.A. Class A 0.5 -0.1
TSU TIM Participacoes S.A. Sponsored ADR 0.36 -0.08
BBVA Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR 0.03 -0.08
BAESY BAE Systems plc Sponsored ADR 1.07 -0.08

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