Separately Managed Accounts Commentary

We remain constructive about the outlook for international markets in the second half of the year. Though Value has outperformed, the fluctuating leadership between Value and Growth and Growth’s recent outperformance suggests a more balanced core position led by bottom-up stock selection.

We see the fundamentals of our companies as strong and in many cases strengthening. In spite of macroeconomic factors, such as rising inflation expectations, that can impact valuations, we believe that as economies normalize and we enter mid to later cycle conditions, this creates a favorable backdrop for high quality growth stocks.

As the market recovery matures and moves into mid-cycle, we believe a more balanced market environment will benefit higher quality stocks.