Shelton Emerging Markets Fund

Investor Summary

Derek Izuel, CFA, serves as Chief Investment Officer and Portfolio Manager for the Shelton Emerging Markets Fund, bringing over 24 years of portfolio management experience to the role. He joined Shelton in January 2022 and holds a Bachelor of Arts degree in Computer Science from the University of California, Berkeley (1991) and an MBA from the University of Michigan - Stephen M. Ross School of Business (1997). His extensive career includes serving as Managing Partner at Vitruvian Capital Management (2018-2022), Chief Equity Officer at HighMark Capital Management (2012-2018), Director of Quantitative Strategies at HighMark Capital Management (2008-2012), Senior Portfolio Manager at Invesco Aim (1998-2008), and Research Analyst at GT Global (1997-1998). A significant management change occurred on October 30, 2025, when Justin Sheetz no longer serves as Portfolio Manager, leaving Izuel as the sole manager of the fund. Shelton Capital Management, founded in 1985 by Richard Shelton, is a Denver-based investment advisory firm that has grown to manage nearly $6.5 billion in total assets as of December 2025, exceeding $7 billion following the acquisition of Stringer Asset Management.

Fund Strategy

The Shelton Emerging Markets Fund seeks to achieve long-term capital appreciation by investing primarily in equity securities of companies within the MSCI Emerging Markets Index universe. The fund employs a sophisticated three-stage investment process combining classification, data science and machine learning analysis, and portfolio construction to balance returns and risk. The fund maintains a concentrated portfolio of 30-50 stocks with high active share and relatively lower tracking error, allowing for deeper research and more meaningful position sizes in highest-conviction ideas. The investment philosophy is built on principles-based investing, seeking businesses that are beneficial to society with responsible management practices. Under normal market conditions, the fund invests at least 80% of its net assets in equity securities of foreign companies in emerging markets included in the MSCI Emerging Markets Index. The firm combines analysis of individual stock investment merit with prudent risk management to produce consistent and superior returns, utilizing data science and machine learning to assess the range of potential outcomes for all portfolio candidates.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	13.2%	-

2025
13.2%

Executive Summary

The Shelton Emerging Markets Fund gained 13.15% in Q3 2025, outperforming the MSCI Emerging Markets Index by 250 basis points through strong stock selection in Asian technology holdings. The fund's core thesis centers on capturing structural growth opportunities across Asia's technology supply chain, particularly benefiting from AI-driven industrial investment that is reshaping emerging markets. Key return drivers include surging demand for AI-related power and cooling systems, with holdings like Delta Electronics nearly doubling as a core beneficiary of global AI investment. Commodity revival also supported performance as stronger global demand for energy and industrial metals benefited resource-driven markets. The portfolio is positioned across select consumer and industrial franchises alongside resource-linked businesses poised to benefit from renewed global demand. While EV price competition and South African macroeconomic challenges present headwinds, the overall outlook remains constructive given accelerating AI investment, firming commodity demand, and supportive global monetary policy easing that creates favorable conditions for emerging market equities.

Core Thesis

Emerging markets present a constructive investment backdrop driven by AI-accelerated industrial investment, firming commodity demand, and supportive monetary policy, with the fund positioned to capture structural growth across Asia's technology supply chain and resource-linked businesses.

Forward Outlook

With AI-driven industrial investment accelerating, commodity demand firming, and global monetary policy easing, emerging markets continue to present a constructive backdrop for investors. While valuations have normalized, they remain attractive relative to developed markets after years of underperformance.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Oct 31 2025	2025 Q3	1211.HK, 2308.TW, 3606.HK, BVT.JO	AI, Asia, China, commodities, emerging markets, growth, technology	-	Shelton Emerging Markets Fund outperformed by 250bp in Q3 2025, driven by AI-accelerated technology holdings and commodity revival. The fund captures structural growth across Asia's tech supply chain while benefiting from global AI investment and firming commodity demand. Despite EV competition headwinds, the outlook remains constructive with supportive monetary policy and attractive valuations versus developed markets.
Aug 22 2025	2025 Q2	1093.HK, IGTI11.SA, JD, WIT	commodities, Dollar, earnings, emerging markets, Fed policy, Trade Policy, Valuations	1093 HK IGTI11 BZ WIT JD 1093.HK IGTI11.SA WIT JD	Emerging markets posted their strongest quarterly gain in two years at 12.17%, driven by dollar weakness, earnings upgrades, and commodity strength. The fund returned 11.05% with mixed stock selection results. Three key conditions for EM outperformance remain intact: strong global growth, weak dollar, and attractive valuations, though trade policy uncertainty poses ongoing risks.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Oct 31 2025

2025 Q3

1211.HK, 2308.TW, 3606.HK, BVT.JO

AI, Asia, China, commodities, emerging markets, growth, technology

Shelton Emerging Markets Fund outperformed by 250bp in Q3 2025, driven by AI-accelerated technology holdings and commodity revival. The fund captures structural growth across Asia's tech supply chain while benefiting from global AI investment and firming commodity demand. Despite EV competition headwinds, the outlook remains constructive with supportive monetary policy and attractive valuations versus developed markets.

Aug 22 2025

2025 Q2

1093.HK, IGTI11.SA, JD, WIT

commodities, Dollar, earnings, emerging markets, Fed policy, Trade Policy, Valuations

1093 HK
IGTI11 BZ
WIT
JD
1093.HK
IGTI11.SA
WIT
JD

Emerging markets posted their strongest quarterly gain in two years at 12.17%, driven by dollar weakness, earnings upgrades, and commodity strength. The fund returned 11.05% with mixed stock selection results. Three key conditions for EM outperformance remain intact: strong global growth, weak dollar, and attractive valuations, though trade policy uncertainty poses ongoing risks.

QUARTER	THEMES	TAGS
2025 Q3	AI The AI boom continued to reshape emerging markets, particularly across Asia. Rapid investment in data-center infrastructure and semiconductor capacity fueled demand for power systems, cooling solutions, and component suppliers, with Taiwanese and Korean technology firms leading the advance. AI-driven industrial investment is accelerating globally.	Data Centers Semiconductors Power Electronics Infrastructure Spending
	Commodities Stronger global demand for energy and industrial metals benefited resource-driven markets, especially Brazil and Chile. The pickup in capital investment linked to AI and clean energy added momentum to commodity consumption. Commodity demand is firming as part of the constructive backdrop.	Energy Metals Industrial Metals Brazil
2025 Q2	Dollar Six consecutive months of dollar weakness boosted EM currency translations and helped moderate imported inflation. The trade-weighted index of the dollar versus foreign currencies is down over 10% so far this year, creating favorable conditions for emerging market performance.	Currency USD Weakness Translation Inflation
	Earnings Consensus 2025 EM EPS was revised up in Q2 after an already solid Q1 uplift, with technology, industrials and materials leading upgrades. Korea, Taiwan and Greece were top-performing markets driven by positive earnings surprises and foreign inflows.	EPS Revisions Technology Industrials Materials
	Commodities Brent rebounded 5.8% despite mid-quarter geopolitical flare-ups, while industrial metals gained 4.8% as cap-ex linked to AI and green transition accelerated. Commodity prices have been strong, indicating increasing economic demand.	Brent Industrial Metals AI Green Transition Demand
	Trade Policy The ultimate source of uncertainty for this scenario is the trade war being waged between the United States and non-U.S. countries over tariffs. Finalization and implementation of U.S. trade-tariff agreements with early Q3 deadlines represents a key watch-point.	Tariffs Trade War Agreements Uncertainty Implementation

QUARTER

THEMES

AI

The AI boom continued to reshape emerging markets, particularly across Asia. Rapid investment in data-center infrastructure and semiconductor capacity fueled demand for power systems, cooling solutions, and component suppliers, with Taiwanese and Korean technology firms leading the advance. AI-driven industrial investment is accelerating globally.

Data Centers Semiconductors Power Electronics Infrastructure Spending

Commodities

Stronger global demand for energy and industrial metals benefited resource-driven markets, especially Brazil and Chile. The pickup in capital investment linked to AI and clean energy added momentum to commodity consumption. Commodity demand is firming as part of the constructive backdrop.

Energy Metals Industrial Metals Brazil

2025 Q2

Dollar

Six consecutive months of dollar weakness boosted EM currency translations and helped moderate imported inflation. The trade-weighted index of the dollar versus foreign currencies is down over 10% so far this year, creating favorable conditions for emerging market performance.

Currency USD Weakness Translation Inflation

Earnings

Consensus 2025 EM EPS was revised up in Q2 after an already solid Q1 uplift, with technology, industrials and materials leading upgrades. Korea, Taiwan and Greece were top-performing markets driven by positive earnings surprises and foreign inflows.

EPS Revisions Technology Industrials Materials

Commodities

Brent rebounded 5.8% despite mid-quarter geopolitical flare-ups, while industrial metals gained 4.8% as cap-ex linked to AI and green transition accelerated. Commodity prices have been strong, indicating increasing economic demand.

Brent Industrial Metals AI Green Transition Demand

Trade Policy

The ultimate source of uncertainty for this scenario is the trade war being waged between the United States and non-U.S. countries over tariffs. Finalization and implementation of U.S. trade-tariff agreements with early Q3 deadlines represents a key watch-point.

Tariffs Trade War Agreements Uncertainty Implementation

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Aug 22, 2025	Fund Letters	Derek Izuel	1093 HK	CSPC Pharmaceutical Group Limited	Health Care	Pharmaceuticals	Bull	New York Stock Exchange	Approvals, Generics, innovation, pharmaceuticals, pipeline	Login
Aug 22, 2025	Fund Letters	Derek Izuel	IGTI11 BZ	Iguatemi S.A.	Real Estate	Retail REITs	Bull	Brasil Bolsa Balcão	Brazil, Malls, Occupancy, realestate, retail	Login
Aug 22, 2025	Fund Letters	Derek Izuel	WIT	Wipro Limited	Information Technology	IT Services	Bear	New York Stock Exchange	Demand, Execution, Itservices, Margins, Outsourcing	Login
Aug 22, 2025	Fund Letters	Derek Izuel	JD	JD.com, Inc.	Consumer Discretionary	Internet & Direct Marketing Retail	Bear	New York Stock Exchange	China, Competition, ecommerce, Logistics, Margins	Login
Jun 30, 2025	Fund Letters	Shelton Emerging Markets Fund	1093.HK	CSPC Pharmaceutical Group	Health Care	Pharmaceuticals	Bull	Hong Kong Stock Exchange	China, Drug Approvals, Emerging markets, Generic Drugs, growth, healthcare, innovation, pharmaceuticals	Login
Jun 30, 2025	Fund Letters	Shelton Emerging Markets Fund	IGTI11.SA	Iguatemi S.A.	Real Estate	Retail REITs	Bull	B3 (Brasil Bolsa Balcão)	Asset Acquisition, Brazil, Emerging markets, Premium Assets, Real Estate, REITs, retail, shopping centers	Login
Jun 30, 2025	Fund Letters	Shelton Emerging Markets Fund	WIT	Wipro Limited	Information Technology	IT Consulting & Other Services	Bear	New York Stock Exchange	ADR, Deal Conversion, Emerging markets, India, IT services, project delays, revenue decline, Technology Consulting	Login
Jun 30, 2025	Fund Letters	Shelton Emerging Markets Fund	JD	JD.com Inc.	Consumer Discretionary	Internet & Direct Marketing Retail	Bear	NASDAQ	capital allocation, China, Competitive pressure, e-commerce, Emerging markets, food delivery, margin compression, online marketplace	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Aug 22, 2025

Fund Letters

Derek Izuel

1093 HK

CSPC Pharmaceutical Group Limited

Health Care

Pharmaceuticals

Bull

New York Stock Exchange

Approvals, Generics, innovation, pharmaceuticals, pipeline

Aug 22, 2025

Fund Letters

Derek Izuel

IGTI11 BZ

Iguatemi S.A.

Real Estate

Retail REITs

Bull

Brasil Bolsa Balcão

Brazil, Malls, Occupancy, realestate, retail

Aug 22, 2025

Fund Letters

Derek Izuel

WIT

Wipro Limited

Information Technology

IT Services

Bear

New York Stock Exchange

Demand, Execution, Itservices, Margins, Outsourcing

Aug 22, 2025

Fund Letters

Derek Izuel

JD.com, Inc.

Consumer Discretionary

Internet & Direct Marketing Retail

Bear

New York Stock Exchange

China, Competition, ecommerce, Logistics, Margins

Jun 30, 2025

Fund Letters

Shelton Emerging Markets Fund

1093.HK

CSPC Pharmaceutical Group

Health Care

Pharmaceuticals

Bull

Hong Kong Stock Exchange

China, Drug Approvals, Emerging markets, Generic Drugs, growth, healthcare, innovation, pharmaceuticals

Jun 30, 2025

Fund Letters

Shelton Emerging Markets Fund

IGTI11.SA

Iguatemi S.A.

Real Estate

Retail REITs

Bull

B3 (Brasil Bolsa Balcão)

Asset Acquisition, Brazil, Emerging markets, Premium Assets, Real Estate, REITs, retail, shopping centers

Jun 30, 2025

Fund Letters

Shelton Emerging Markets Fund

WIT

Wipro Limited

Information Technology

IT Consulting & Other Services

Bear

New York Stock Exchange

ADR, Deal Conversion, Emerging markets, India, IT services, project delays, revenue decline, Technology Consulting

Jun 30, 2025

Fund Letters

Shelton Emerging Markets Fund

JD.com Inc.

Consumer Discretionary

Internet & Direct Marketing Retail

Bear

NASDAQ

capital allocation, China, Competitive pressure, e-commerce, Emerging markets, food delivery, margin compression, online marketplace

TICKER	COMMENTARY
2308.TW	Delta Electronics is a leading global provider of power and thermal management solutions, serving industries from data centers to automation and renewable energy. Delta nearly doubled during the quarter, benefiting from surging demand for AI-related power and cooling systems. Its leadership in data-center infrastructure positioned the company as a core beneficiary of global AI investment
3606.HK	Fuyao Glass is one of the world's largest manufacturers of automotive glass, supplying major global automakers with high-value products such as panoramic roofs and sensor-integrated windshields. Fuyao advanced over 40% as margin gains from premium automotive glass and disciplined cost management drove record profitability. Strong pricing power and steady U.S. demand supported performance.
1211.HK	BYD is a Chinese electric vehicle and battery manufacturer, and one of the world's leading producers of new energy vehicles across multiple price segments. BYD declined about 9% amid heightened EV price competition and softening domestic demand. Margin pressure and cautious earnings guidance weighed on sentiment despite the company's solid long-term positioning.
BVT.JO	Bidvest is a South African diversified industrial group operating across services, logistics, and consumer products, with both domestic and international operations. Bidvest slipped roughly 5% as South African macroeconomic challenges offset strength in its international businesses. Elevated financing costs and weakness in commercial divisions were headwinds during the quarter.

TICKER

COMMENTARY

2308.TW

Delta Electronics is a leading global provider of power and thermal management solutions, serving industries from data centers to automation and renewable energy. Delta nearly doubled during the quarter, benefiting from surging demand for AI-related power and cooling systems. Its leadership in data-center infrastructure positioned the company as a core beneficiary of global AI investment

3606.HK

Fuyao Glass is one of the world's largest manufacturers of automotive glass, supplying major global automakers with high-value products such as panoramic roofs and sensor-integrated windshields. Fuyao advanced over 40% as margin gains from premium automotive glass and disciplined cost management drove record profitability. Strong pricing power and steady U.S. demand supported performance.

1211.HK

BYD is a Chinese electric vehicle and battery manufacturer, and one of the world's leading producers of new energy vehicles across multiple price segments. BYD declined about 9% amid heightened EV price competition and softening domestic demand. Margin pressure and cautious earnings guidance weighed on sentiment despite the company's solid long-term positioning.

BVT.JO

Bidvest is a South African diversified industrial group operating across services, logistics, and consumer products, with both domestic and international operations. Bidvest slipped roughly 5% as South African macroeconomic challenges offset strength in its international businesses. Elevated financing costs and weakness in commercial divisions were headwinds during the quarter.

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Derek Izuel

Shelton Emerging Markets Fund

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th September 2025

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Commodities

Dollar

Earnings

Commodities

Trade Policy

Investor Pitches

Current Portfolio as of ( 30th September 2025 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Derek Izuel Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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Shelton Emerging Markets Fund