| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.8% | -8.6% | -8.6% |
Bell Global Emerging Companies Fund declined 4.2% in March 2026, underperforming the MSCI World SMID Cap Index by 0.3% as Middle East conflict escalation drove heightened market volatility. The forced closure of the Strait of Hormuz caused oil prices to surge to $120 per barrel, raising stagflation concerns and pressuring risk assets. Deutsche Boerse was the top contributor, benefiting from increased trading volatility in its derivatives franchise, while Boot Barn was the largest detractor amid consumer discretionary weakness. The fund added TE Connectivity and Nomura Research Institute while exiting Old Dominion Freight Line and Sprouts Farmers Market. Despite challenging conditions for quality-oriented investing and AI disruption fears creating indiscriminate selling, the managers remain confident in their approach. Global SMID caps outperformed large caps by over 400 basis points in Q1, and the fund sees this trend continuing given attractive relative valuations. They believe current dislocations are creating opportunities for their Quality at a Reasonable Price strategy, with the portfolio becoming progressively better positioned for stronger future returns.
Quality at a Reasonable Price approach focused on high-quality businesses with durable competitive positions, strong balance sheets and long-term growth potential in the global small and mid-cap universe.
While the near-term path of markets remains uncertain, particularly given the evolving macro environment, the fund remains confident in the long-term merits of their Quality at a Reasonable Price approach. They see an improving risk-reward profile across the portfolio and believe it is becoming progressively better positioned as they lean into opportunities created by heightened dispersion and dislocation.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 29 2026 | 2026 Q1 | 3064.T, 4307.T, 5803.T, 7741.T, BJ, BOOT, DB1.DE, EVT.DE, EXPN.L, GTT.PA, KEYS, ODFL, SFM, TER, TTI | AI, energy, Geopolitical, global, Quality, small caps, volatility |
DB1.DE BOOT TEL 4307.T |
Bell Global Emerging Companies Fund underperformed in March as Middle East conflict drove oil to $120 and created broad market volatility. Despite AI disruption fears pressuring quality stocks, the fund sees improving opportunities in global small-mid caps, which outperformed large caps by 400bps in Q1. Management remains confident their Quality at a Reasonable Price approach will benefit from current dislocations. |
| Jan 23 2026 | 2025 Q4 | 3064.T, 6146.T, AMS.MC, AUTO.L, BJ, BOOT, CHKP, CNM, COR, CPG.L, DB1.DE, GWW, LPLA, MSCI, ODFL, PCTY, SCI, TSCO, TTC, TTI.HK, VEEV, WKL.AS | global, industrials, Quality, SMID Cap, technology, value |
ODFL GWW LPLA CPG LN 6146 JP 3064 JP TTC CNM TSCO COR AUTO LN VEEV |
Bell Global Emerging Companies Fund's quality-focused approach faced style headwinds in December, declining 1.8% versus the index's -0.8%. Industrial and technology holdings drove positive performance while consumer discretionary lagged. The team strategically repositioned the portfolio for 2026, adding industrial distributor W.W. Grainger and wealth manager LPL Financial. Compelling valuations and earnings-driven market transition expected to favor quality companies ahead. |
| Nov 30 2025 | 2025 Q3 | 3064.T, 3769.T, 6146.T, ATD.TO, AUTO.L, BR, CHKP, CLH, COR, DB1.DE, DXCM, FBIN, JKHY, KEYS, MONC.MI, MSCI, PCTY, RMV.L, SCI, VEEV, WOLW.L | AI, Fintech, global, healthcare, payments, Quality, SMID Cap, technology |
JKHY 3769 JP AUTO LN |
Bell Global Emerging Companies Fund underperformed in November on AI disruption fears affecting several holdings. Strong fintech performance from Jack Henry and GMO Payment Gateway was offset by weakness in Autotrader and other digital platforms. The manager believes AI concerns are overstated for quality businesses and has added to positions at compelling valuations while exiting where disruption risks are genuine. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI disruption narrative has been a key driver of market behavior with periods of indiscriminate selling extending beyond pure software into adjacent sectors. The market's treatment of stocks with any perceived AI competitive exposure has remained largely indiscriminate, though the fund believes the reality will prove more nuanced over time. |
Disruption Software Technology Sentiment |
QualityThe fund continues its Quality at a Reasonable Price approach despite challenging environment for quality-oriented investing. They are observing attractive dislocations across high-quality businesses with durable competitive positions, strong balance sheets and long-term growth potential. |
Value Balance Sheets Competitive Long-term | |
Small CapsGlobal SMID Caps outperformed Large Caps by over 400 basis points in Q1 2026 following several years of underperformance. The fund sees good reasons for this trend to continue, supported by more attractive relative valuations and stronger earnings growth potential across the SMID universe. |
Outperformance Valuations Earnings Growth | |
GeopoliticalThe escalation of conflict in the Middle East acted as a key catalyst for heightened volatility. The forced closure of the Strait of Hormuz proved most destabilizing, leading to stranded oil shipments and heightened concerns around supply shock, with crude prices surging to approximately US$120 per barrel. |
Middle East Oil Volatility Supply | |
| 2025 Q4 |
Industrial GasesSOL Group operates one of Europe's leading industrial gas franchises serving 50k customers across 32 countries, with a network of 39 air-separation units and 50+ filling plants that took almost a century to assemble. The business benefits from high switching costs, local oligopolies due to transport economics, and regulatory barriers that make replication extremely difficult. |
Industrial Gases Infrastructure Oligopoly Barriers |
HomecareVivisol has grown from 140k patients in 2010 to 750k by 2024, representing 13% CAGR driven by Europe's aging population and healthcare systems moving chronic care from hospitals to homes. The business benefits from high switching costs for patients and 95%+ contract renewal rates with national health systems. |
Homecare Demographics Healthcare Recurring | |
AIManager maintains cautious stance on AI impact, preferring businesses with high barriers to entry that are unlikely to see their unit economics negatively affected by AI over the next decades. Views infrastructure and business services as more durable than software companies in an AI-driven world. |
AI Disruption Software Infrastructure | |
| 2025 Q3 |
AISeveral portfolio holdings faced pressure from perceived AI disruption risk throughout the year. The manager believes market fears are significantly overstated for many businesses and has added to positions as valuations became compelling. Where serious disruption concerns developed, positions were exited, such as Gartner due to structural threats to its business model from AI-driven competition. |
Disruption Valuation Competition Technology Research |
FinTechJack Henry, a leading US fintech company, was a strong positive contributor after delivering solid quarterly results. Demand for its core processing platforms remains robust as banks modernize their technology stacks. The company benefits from a highly recurring revenue model and sticky customer base, positioning it well for steady earnings growth. |
Banking Processing Recurring Modernization Growth | |
PaymentsGMO Payment Gateway rallied after posting strong earnings and reaffirming confidence in long-term targets calling for operating profit growth averaging more than 20% per annum. The company remains a key beneficiary of Japan's structural shift to cashless payments, where market penetration still trails global peers, and continues driving upside through market share gains. |
Cashless Japan Growth Market Share Digital |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | Bell Global Emerging Companies Fund | DB1.DE | Deutsche Boerse AG | Financial Data & Stock Exchanges | Financial Exchanges & Data | Bull | - | Clearing Services, Cyclical Upside, Derivatives Trading, European markets, Financial Exchanges, market data, recurring revenue, risk management | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Emerging Companies Fund | BOOT | Boot Barn Holdings, Inc. | Apparel Retail | Specialty Retail | Bull | New York Stock Exchange | Apparel, Consumer Discretionary, growth strategy, same-store sales growth, Specialty retail, store rollout, Valuation De-rating, Western Wear | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Emerging Companies Fund | TEL | TE Connectivity Ltd. | Electronic Components | Electronic Components | Bull | New York Stock Exchange | AI infrastructure, double-digit growth, Electric Vehicles, Electrical Connectors, Factory Automation, Free Cash Flow, margin expansion, shareholder returns | Login |
| Apr 29, 2026 | Fund Letters | Bell Global Emerging Companies Fund | 4307.T | Nomura Research Institute, Ltd. | Information Technology Services | IT Services | Bull | New York Stock Exchange | AI implementation, Capital Markets Day, Consulting, cost optimization, Fixed-Price Contracts, international expansion, IT services, Japan | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | ODFL | Old Dominion Freight Line, Inc. | Industrials | Trucking | Bull | NASDAQ | Cyclicality, Freight, Ltl, Margins, Pricingpower | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | GWW | W.W. Grainger, Inc. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | cashflow, Cycle, Industrial distribution, Margins, Pricing power | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | LPLA | LPL Financial Holdings Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Brokerage, capital returns, operating leverage, organic growth, wealth management | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | CPG LN | Compass Group PLC | Consumer Discretionary | Hotels Restaurants & Leisure | Bull | New York Stock Exchange | compounding, Margins, Outsourcing, services, valuation | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | 6146 JP | Disco Corporation | Information Technology | Semiconductor Equipment | Bull | New York Stock Exchange | Equipment, Margins, Pricing power, Semi Conductors, technology | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | 3064 JP | MonotaRO Co., Ltd. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | compounding, ecommerce, Industrial distribution, Logistics, marketshare | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | TTC | The Toro Company | Industrials | Machinery | Bull | New York Stock Exchange | Industrials, infrastructure, machinery, Pricingpower, resilience | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | CNM | Core & Main, Inc. | Industrials | Industrial Distribution | Bull | New York Stock Exchange | Distribution, growth, infrastructure, Municipal, Water | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | TSCO | Tractor Supply Company | Consumer Discretionary | Specialty Retail | Bull | NASDAQ | consumer, Cyclicality, resilience, Ruralretail, Store growth | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | COR | Cencora, Inc. | Health Care | Health Care Distributors | Bull | New York Stock Exchange | cashflow, Distribution, healthcare, pharmaceuticals, scale | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | AUTO LN | AutoTrader Group PLC | Communication Services | Digital Media | Bull | New York Stock Exchange | Autos, Digital Marketplace, network effects, Platforms, Pricing power | Login |
| Jan 23, 2026 | Fund Letters | Ned Bell | VEEV | Veeva Systems Inc. | Health Care | Health Care Technology | Bull | New York Stock Exchange | Health care software, life sciences, recurring revenue, SaaS, Stickiness | Login |
| Nov 30, 2025 | Fund Letters | Ned Bell | JKHY | Jack Henry & Associates, Inc. | Information Technology | Application Software | Bull | NASDAQ | banking, Fintech, Modernisation, Recurring, Software | Login |
| Nov 30, 2025 | Fund Letters | Ned Bell | 3769 JP | GMO Payment Gateway, Inc. | Information Technology | Transaction & Payment Processing Services | Bull | New York Stock Exchange | Cashless, Fintech, growth, Margins, Payments | Login |
| Nov 30, 2025 | Fund Letters | Ned Bell | AUTO LN | Auto Trader Group plc | Communication Services | Advertising | Bear | New York Stock Exchange | advertising, AI, marketplace, network, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| DB1.DE | Deutsche Boerse was supported by improving investor sentiment as a pickup in market volatility drove increased trading activity, particularly within its high-margin derivatives franchise (Eurex), positioning the company for potential near-term earnings upside. The business continues to benefit from structurally attractive growth drivers, including higher clearing volumes, sustained demand for risk management products and the ongoing migration toward centrally cleared markets. Despite these strengths, the stock entered the period at a relatively undemanding valuation for a business of this quality, which, combined with rising expectations for earnings upgrades, supported a re-rating. We continue to hold the name in the portfolio, although have trimmed some profits following the outperformance. |
| SFM | Sprouts Farmers Market was a positive contributor. After the stock bounced more than 20% from February lows, given Sprouts' relatively more discretionary product mix compared to traditional grocers, there is risk of a period of moderating demand as rising inflationary pressures and geopolitical tensions could weigh on US consumer spending. As such, we elected to sell the position and rotate the capital into other higher conviction names. |
| GTT.PA | Gaztransport & Technigaz was among the positive contributors for the quarter. |
| BJ | BJ's Wholesale Club was among the positive contributors for the quarter. |
| BOOT | Boot Barn was among the most notable detractors over the month. The escalation in geopolitical tensions drove a broad sell-off across Consumer Discretionary, reflecting both risk aversion and rising concerns around household spending as fuel costs increased and inflation expectations moved higher. As a SMID-cap, high-growth apparel retailer, Boot Barn was particularly exposed to these dynamics. Despite this near-term pressure, we retain conviction in the company's ability to deliver low single-digit same-store sales growth while continuing its strong store rollout strategy, supporting sustained top-line expansion. We see the risk-reward as attractive at this level following the valuation de-rating and therefore remain comfortable holding the name in the portfolio. |
| TEL | TE Connectivity was a new addition, a global leader in electrical connectors. One of the primary tailwinds for the company has recently been its increased market share in the critical components that distribute power, signal, and data across electric vehicles, factory robots and hyperscale AI server racks. This positioning is expected to support a sustained period of double-digit revenue growth, alongside margin expansion over the medium-term. The company also consistently generates significant free cash flow and boasts a very shareholder-friendly management team, illustrated earlier this year when the board approved a 10% quarterly dividend hike alongside a substantial $3 billion expansion to its share repurchase program. We currently model strong upside looking forward, driven by a combination of earnings upgrades and potential for valuation multiple expansion. |
| 4307.T | Nomura Research Institute was a new holding established following a sharp pullback in its share price and a positive meeting with management on our recent research trip to Japan. The company operates as a leading IT solutions provider and consultancy, primarily serving financial, retail and manufacturing clients in Japan. We believe that the business will benefit from both revenue growth and cost optimisation opportunities arising from the accelerating implementation of AI within both customer workflows and its own operations. Furthermore, customer adoption of AI should also drive an acceleration in consultancy and implementation revenues, while the fixed-price nature of the IT Solutions business will benefit from the company's own AI adoption internally. We anticipate that the upcoming capital markets day will provide greater clarity on the medium-term growth outlook and progress of its international restructuring initiatives. |
| ODFL | Old Dominion Freight Line was a full exit undertaken during March, a leading US less-than-truckload (LTL) carrier. While we continue to see good scope for strong earnings growth in the coming years as earnings rebound from depressed levels, a strong rally in the share price and material valuation re-rating have largely priced this in. With the potential for macro disruptions related to the conflict in Iran, we felt the risk-reward profile was starting to skew to the downside and therefore exited the position. |
| TER | Teradyne was mentioned as one of the AI beneficiaries the fund has had exposure to, though the relative outperformance from these holdings has been more than offset by material valuation contraction across other parts of the portfolio. |
| 5803.T | Fujikura was mentioned as one of the AI beneficiaries the fund has had exposure to, though the relative outperformance from these holdings has been more than offset by material valuation contraction across other parts of the portfolio. |
| 7741.T | Hoya was mentioned as one of the AI beneficiaries the fund has had exposure to, though the relative outperformance from these holdings has been more than offset by material valuation contraction across other parts of the portfolio. |
| KEYS | Keysight Technologies was mentioned as one of the AI beneficiaries the fund has had exposure to, though the relative outperformance from these holdings has been more than offset by material valuation contraction across other parts of the portfolio. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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