July 2017 Altrinsic Emerging Markets Equity

July 2017

Altrinsic Emerging Markets Equity Commentary − Second Quarter 2017

Dear Investor,

The Altrinsic Emerging Markets Equity Portfolio gained 6.0% during the second quarter in U.S. dollars. By comparison, the MSCI Emerging Markets Index rose 6.3%.1 Markets benefited from synchronized, albeit modest, global economic growth, strengthening Chinese consumer spending, earnings expectations, and positive portfolio flows into the asset class. A fresh wave of corruption allegations in Brazil and escalating tensions involving North Korea impacted local markets but seemed to be shrugged off by the broader emerging markets. A defining aspect of the asset class’s performance continues to be the narrow scope of leadership by a handful of technology and internet services companies. We believe investors should be mindful of the lessons of history in rapidly evolving industries, when complacency begins to trump valuation discipline.

Relative performance during the quarter was positively impacted by holdings in the financial and materials sectors, while holdings in the consumer staples and discretionary sectors detracted from performance. Among our financial holdings, ICICI, a leading Indian private sector bank, performed well as investors gained greater comfort around its non-performing loan book, and Garanti Bank in Turkey recovered after reporting strong quarterly earnings. Detractors included our consumer sector holdings, particularly Russian food retailers Lenta and Magnit as consumer demand remained weak. From a geographic perspective, Brazil and Taiwan were sources of positive attribution, helped by differentiated positioning in information technology and healthcare, while China, where we are underweight, was a drag on relative, performance. Absolute performance during the quarter was led by our holdings in the information technology and financial sectors, while energy was a modest drag. Among the notable performers were Hon Hai, a Taiwanese electronics manufacturer, and SK Hynix, a Korean memory (DRAM) manufacturer, which benefited from strong demand for their products, while PetroChina performed poorly due to falling oil prices.

In the second quarter, we initiated one new position in Cielo, the leading electronic payment processor in Brazil. Cielo has shown a consistent track record of growing its installed base of terminals and increasing revenue per merchant through product innovation and strong customer service. Its stock has underperformed the market significantly over the past 12 months due to various regulatory and macro concerns. However, the shares are trading at an attractive multiple of 14x 2017 earnings, reflecting an overly pessimistic outlook for industry growth and regulatory burden. Consistent with the dynamics in more mature markets, we expect fees paid by merchants as a percent of transaction value to decline in Brazil. However, volume growth and ancillary services should more than offset this trend.

In other activity, we added to existing positions, including Ambev, the dominant Brazilian brewer, and Tenaris, the tubular pipe manufacturer, which focusses on the oil and gas industry. On the sell side, we eliminated four positions, including Tech Mahindra and Glenmark Pharmaceuticals, as we lost confidence in managements’ ability to execute in an increasingly competitive environment after both companies reported disappointing quarterly results. Asian technology stocks had a particularly strong quarter with hardware makers enjoying cyclical tailwinds and internet stocks continuing to see structural growth. Over the past year, we have been trimming some of our larger positions, including SK Hynix, Catcher Technology, a casing manufacturer,

Alibaba, and JD.com, the Chinese ecommerce vendors, all of which were differentiated, non-consensus investments when we built the positions. Although we still see significant optionality in many names, such as Baidu, the Chinese search engine leader, we have been reducing our position sizes in stocks where the valuation multiples have expanded and the risk-reward has become more balanced.

During the quarter, another chapter in the corruption saga surfaced in Brazil, tensions on the Korean peninsula began to test South Korea’s relations with China, while India saw the first effects of its tax reform.

After a 15-month run in both currency and equities, the Brazilian markets declined as political turbulence returned last quarter. Following corruption allegations, the future of President Michel Temer and his government was thrown into question, as congress debates whether to move forward with formal charges. The increase in uncertainty has raised doubts about the passage of further reforms, crimping growth expectations and raising concerns about Brazil’s ability to meet its fiscal targets. Our view is that Brazil has gained some leeway with the recent steep drop in inflation and interest rates combined with non-recurring revenue generating measures, and we believe it should be able to get its reform agenda back on track after next year’s elections.

The volatility created by the corruption allegation in May gave us an opportunity to initiate our position in Cielo and increase our weight in Ambev. During the quarter, we also trimmed our position in Qualicorp, the healthcare benefits intermediary, after the stock appreciated toward our estimate of intrinsic value, and we added to Embraer, the regional jet manufacturer that had underperformed after a weak first quarter. Both Embraer and Ambev had experienced operating margin declines due to exogenous and company-specific issues, but we expect a recovery next year as their management teams focus on managing costs.

In South Korea, Moon Jae-in won the presidential election by a wide margin, bringing considerable legitimacy to his more accommodative policy on China. The geopolitical shift towards China and the olive branch extended to North Korea shows a possible path forward to containing risks on the Korean peninsula. Normalization of relations between South Korea and China should provide a welcome reprieve for Korean companies, which suffered from the Chinese boycott of Korean products and the partial travel ban on group shopping tours to South Korea. Two of our holdings, Hyundai Motor and Hyundai Mobis, suffered a falloff in demand as a result of frayed relations with China during the final days of President Park’s administration and the partial installation by the U.S. of the controversial THAAD missile defense system in South Korea. Both stocks recovered from depressed levels on hopes of restructuring and improved corporate governance. During the quarter, we increased our position in Hyundai Mobis whose defensive, high margin, after sales (spare) parts business is being undervalued by the market. Trading at 8x 2017 earnings, we believe the shares present favorable upside potential relative to short-term downside risk.

India’s implementation of a nationwide, unified goods and services tax (GST) seems to be off to a smooth start. Retailers and manufacturers have been clearing inventory ahead of full implementation but the demand pull forward hasn’t spurred economic activity to the extent the market hoped. Another near-term headwind has muted corporate credit growth over the past several quarters. However, with the Indian banks having made commendable strides in cleaning up their corporate loan books, we are optimistic that this sets the stage for the next leg of lending growth. Recent changes in bankruptcy laws have made it easier for banks to foreclose on collateral in the event of default. In addition, we expect the Indian central bank to continue cutting interest rates in light of record low inflation running at 2%. These two factors should improve demand for credit and

the willingness of banks to lend, starting a long-awaited capex cycle. We feel the fund is well positioned for these changes: ICICI Bank should be a direct beneficiary while both Bharti Infratel, the telecom tower operator and Power Grid, the electricity transmission grid operator, are likely to see a pickup in infrastructure spend.

Although our portfolio construction is primarily based on company-specific fundamentals and valuations, several macro sensitivities are expressed in the fund. These include exposure to economic recovery in Brazil, the accelerating growth potential in India, and no exposure to Chinese banks. The majority of our positions in Brazil are directly leveraged to improving consumer confidence and recovering employment, including Totvs, Ambev, and Qualicorp. India exposure, as discussed above, includes ICICI, Bharti Infratel, and Power Grid, which are all leveraged to an improving investment cycle. Despite genuine progress in introducing reforms to the financial system, we have yet to see a credible path to bad debt cleanup in the Chinese banks. The fund’s geographic positioning is presented in the table below.

Chart 1. Altrinsic Emerging Markets Equity Geographic Exposure

30 27.9

22.7 AGA EM MSCI EM

15.6 15 12.2 12.5 10.9 8.8 9.5 6.0 6.2 6.6 6.1 6.6 6.6 4.8 5.6 4.9 5.0 3.2 3.7 2.2 2.3 2.2 2.0 0 China S.Korea India Taiwan Thailand Other Russia S. Africa Other Brazil Mexico Other Asia EMEA LatAm Asia EMEA LATAM AGA 62.3% AGA 15.0% AGA 16.7% MSCI EM 73.1% MSCI EM 14.6% MSCI EM 12.3% As of 06/30/17, Source: MSCI Emerging Markets (Net) Index. Country portfolio weights are based upon a representative fully discretionary account with the emerging markets mandate.

As we evaluate risks looking forward, there are several areas that we will continue to monitor closely: • North Korea: the Trump administration’s decision to unilaterally impose sanctions on Chinese companies trading with North Korea runs the risk of exacerbating an already fragile situation. • Protectionism: with the U.S. Congress struggling to craft a workable replacement for the Affordable Care Act and the President mired in controversy around Russia’s role in election tampering, an attempt to hastily deliver on campaign promises on foreign trade could come at the expense of Mexico or China. • China debt: even as Chinese authorities are taking steps to clean up the shadow banking sector, mounting bad debt at state owned enterprises (SOEs) is unlikely to be resolved quickly.

Despite these risks, emerging markets have enjoyed record fund inflows through the first half of 2017 thanks to positive earnings revisions and attractive valuations relative to other asset classes. Furthermore, interest rate cuts in key markets, including India, Brazil, and Russia, should help spur economic growth and investment. Since market leadership has been very narrow this year, we continue to see attractive valuations across a broad range of geographies and industries. Global growth continues at a moderate but sustainable pace and, as we have written about in past notes, government-led structural reform continues to improve the investment climate

across several key countries. We believe the fund is appropriately positioned to perform in this environment, while maintaining a prudent level of downside protection.

Thank you for your support and interest in Altrinsic.

Regards,

Srinivas Polaki

Chip Powell

1Performance is presented gross of fees. Gross returns will be reduced by the investment advisory fee. Past performance is not indicative of future results.

ALTRINSIC EMERGING MARKETS EQUITY COMPOSITE FULL DISCLOSURE PRESENTATION

Ex-Post Standard Tot al Deviation Firm Composite Assets Annual Performance Results (3 Yr Annualized) % o f Number MSCI MSCI Ye a r Asse t s US D Firm of Composite EM Composit e Composit e EM to Date (millions) (millions) Assets Accounts Gross Net (Net) Dispersion (Net) Q2 2017 7,333 91 1% 3 16.83% 16.29% 18.43% N.A.1 15.37% 15.83% 2016 7,107 78 1% 3 13.75% 12.69% 11.19% N.A.1 15.98% 16.07% 2015 8,927 34 0% 2 -14.82% -15.64% -14.92% N.A.1 N.A. N.A. 2014 11,656 48 0% 1 -2.72% -3.64% -2.19% N.A.1 N.A. N.A. 2013 14,261 50 0% 1 -1.13% -1.83% -1.00% N.A.1 N.A. N.A. N.A. - Inf ormat ion is not stat istically meaningf ul due to an insuff icient period of t ime. N.A.1 - Information is not statistically meaningful due t o an insuf ficient number of port folios in the composit e f or the entire year. *Result s shown f or the year 2013 represent partial period perf ormance from April 1, 2013 t hrough December 31, 2013.

The Altrinsic Emerging M arket Equity Composite is a diversified (typically between 50 - 80 holdings), bottom-up, fundamental, value oriented, Emerging M arket focused portfolio, benchmarked to the M SCI Emerging M arkets (Net) Index. The M SCI Emerging M arkets (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. Portfolios in the composite may invest in countries that are not in the M SCI Emerging M arkets (Net) Index. Additional information is available upon request. The minimum account size for this composite is $5 million. Returns include the effect of foreign currency exchange rates.

Altrinsic Global Advisors, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Altrinsic Global Advisors, LLC has been independently verified for the periods from December 8, 2000 through M arch 31, 2017.

Verification assesses whether (1)the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Altrinsic Emerging M arkets Equity Composite has been examined for the periods beginning April 1, 2013 through M arch 31, 2017. The verification and performance examination reports are available upon request. Altrinsic Global Advisors, LLC is a registered investment adviser. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. Withholding taxes may vary according to the investor's domicile. Composite returns represent investors domiciled primarily in Australia, United States, and Canada. The M SCI Emerging M arkets (Net) Index deducts withholding tax by applying the maximum rate of the company's country of incorporation applicable to non-resident institutional investors. Past performance is not indicative of future results.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. Net of fee performance was calculated using the highest applicable annual management fee of 0.95%applied monthly. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

The investment management fee schedule is 0.95% on the first $25 million, 0.85% on the next $50 million, and 0.75% on the remainder. Some accounts may pay incentive fees. Actual investment advisory fees incurred by clients may vary. The Altrinsic Emerging M arkets Equity Composite was created April 1, 2013

Important Considerations and Assumptions

This presentation has been prepared solely for informational purposes and nothing in this material may be relied on in any manner as investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you.

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This material has been prepared by Altrinsic on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. No assurances or representations are provided regarding the reliability, accuracy or completeness of such information and Altrinsic has not sought to independently verify information taken from public and third party sources. Altrinsic does not accept liability for any loss arising from the use hereof. Any projections, market outlooks or estimates in this document are forward-looking statements and are based upon certain assumptions. Due to various risks and uncertainties, actual events or results, or the actual performance of any investment or strategy may differ materially from those reflected or contemplated in such forward-looking statements. Except where otherwise indicated, the information provided, including any investment views and market opinions/analyses expressed, constitute judgments as of the date of this document and not as of any future date. This information will not be updated or otherwise revised to reflect information that subsequently becomes available, or changes in circumstances or events occurring after the date hereof.

The data and information presented is based on representative accounts and is for informational and illustrative purposes only. Individual client data and information may vary based on different objectives for different clients. This material does not constitute investment advice and should not be viewed as current or past recommendations or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. Any documents describing Altrinsic’s products or services shall not constitute an offer to sell or a solicitation to buy the securities from any person in any jurisdiction where it is unlawful to do so. Any specific investments referenced may or may not be held by accounts managed by Altrinsic and do not represent all of the investments purchased, sold or recommended for client accounts. Readers should not assume that any investments in securities described were or will be profitable. There are no guarantees that investment objectives will be met. Investing entails risks, including possible loss of principal. Altrinsic may modify its investment approach and portfolio parameters, in the future, in a manner which it believes is consistent with its overall investment objective of long-term capital appreciation and reduced risk.

Past performance is not a guide to or otherwise indicative of future results. Any investment results and portfolio compositions are provided for illustrative purposes only and may not be indicative of the future investment results or portfolio composition of any account, investment or strategy managed by Altrinsic.

Disclosure of Risk Factors

An investment in any account, investment or strategy is speculative and involves a significant degree of risk, which each prospective investor must carefully consider. Returns generated from an investment in any account, investment or strategy may not adequately compensate investors for the business and financial risks assumed. An investor in any account, investment or strategy could lose all or a substantial amount of his or her investment. Before making an investment, prospective investors are advised to thoroughly and carefully review any disclosure documents with their financial, legal and tax advisors to determine whether and investment is suitable for them.

Additional Performance Disclosure – Use of Benchmarks

Benchmarks are provided for illustrative purposes only. Comparisons to benchmarks have limitations because benchmarks have volatility and other material characteristics that may differ from the accounts, investments or strategies managed by Altrinsic. Because of these differences, benchmarks should not be relied upon as an accurate measure of comparison.

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