Investment Strategies
Developing Markets Portfolio (Institutional)
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Developing Markets Fact Sheet

Developing Markets Portfolio (Institutional)

Managers

David Forward Portfolio Manager and Senior Research Analyst
Hyung Kim Portfolio Manager and Senior Research Analyst
Sean Pompa, CFA Portfolio Manager and Senior Research Analyst
Craig Thrasher, CFA Portfolio Manager and Senior Research Analyst
    Introduction
    Highlights
    Top Five Holdings
    Sector Diversification
    Portfolio Characteristics
    Historical Returns
    Performance Statistics

The KAR Developing Markets Portfolio is a developing markets portfolio that invests in high-quality companies purchased at attractive valuations. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.

Highlights

Asset Class: All Cap
Primary Index: MSCI Emerging Markets Index
Inception Date: August 1, 2021
Holdings Range: 30–60
Sector Constraint: Seek broad diversification, but no sector constraints

Geographic Constraint: Seek broad diversification, but no country constraints
Portfolio Turnover: 25% – 35%

Top Five Holdings

As of March 31, 2026

This report is based on the assumptions and analysis made and believed to be reasonable by Advisor. However, no assurance can be given that Advisor’s opinions or expectations will be correct. This report is intended for informational purposes only and should be not considered a recommendation or solicitation to purchase securities. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable. Numbers may not always add up due to rounding. Past performance is no guarantee of future results.

Company

Percent of equity (%)

Country
Taiwan Semiconductor Manufacturing 10.3 Taiwan
Caixa Seguridade Participacoes 5.5 Brazil
Corporacion Moctezuma 4.9 Mexico
Ferreycorp 4.4 Peru
GPS Participacoes e Empreendimentos 4.1 Brazil
Total 29.0

Sector Diversification

As of March 31, 2026
KAR Developing Markets
MSCI® Emerging Markets Index

Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications. Data is obtained by FactSet Research Systems and is assumed to be reliable.

Portfolio Characteristics

As of March 31, 2026

*Free cash flow data is as of [prior quarter end date]. Prices are as of [quarter end date]. Excludes financials.

KAR utilizes the interquartile method when calculating Debt/EBITDA. The interquartile method excludes outliers from an aggregate statistic such as weighted average. The interquartile method does not assume that data from the top or bottom of the distribution are outliers—only the extreme ends are excluded—and that it can be applied consistently as a quantitative method for most fundamental characteristics. Debt/EBITDA utilizes net debt for the calculation.

Dividend yield is a financial ratio that shows how much companies have paid out in dividends in the most recent year relative to their stock price at the end of such year. Dividend yield is being shown here as a characteristic of the stocks held in the portfolio and not to infer how the stocks have or will perform, as dividends are not the only component of the portfolio’s performance. Dividends are subject to change from year-to-year, and the portfolio’s dividend yield could be lower or higher in future years.

This material is deemed supplemental and complements the performance and disclosure at the end of the Disclosure page of the KAR Developing Markets fact sheet. Data is obtained from FactSet Research Systems and BNY Mellon and is assumed to be reliable. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Developing Markets

MSCI® Emerging Markets Index
Quality
Return on Equity-Past 5 Years 24.2% 17.8%
Debt/EBITDA 0.8x 0.8x
Growth
Earnings Per Share Growth-Past 5 Years 12.6% 15.7%
Earnings Per Share Growth-Past 10 Years 12.9% 13.8%
Dividend Per Share Growth-Past 5 Years 15.1% 17.3%
Dividend Per Share Growth-Past 10 Years 14.4% 13.2%
Value
P/E Ratio-Trailing 12 Months 15.8x 17.4x
Dividend Yield 3.9% 2.3%
Market Characteristics
$ Weighted Average Market Cap $220.7 B $323.8 B

Historical Returns (Institutional)

*August 1, 2021

†All periods less than one year are total returns and are not annualized. Returns are final.

‡Net of all fees and expenses. Assumes a 0.90% annual fee. Fees presented on the Disclosure page of the KAR Developing Markets fact sheet could vary from the assumed fee in the net-of-fee calculation, as actual fees paid by a particular client account differ depending on a variety of factors including, but not limited to, business unit and size of mandate. The fee used on the Disclosure page of the KAR Developing Markets fact sheet utilizes an assumed maximum fee across the firm’s business units, which is further detailed on that page.
||Performance calculations are for the five months ended December 31, 2021.

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Developing Markets fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Developing Markets fact sheet. Data is obtained from FactSet Research Systems and is assumed to be reliable. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Period KAR Developing Markets (gross) KAR Developing Markets (net)‡ MSCI® Emerging Markets Index
Annualized Returns (%)† As of March 31, 2026
1st Quarter0.900.68(0.17)
1 Year19.4418.3829.55
3 Year14.5113.5014.84
Inception*4.573.644.42
Annual Returns (%)
202528.1927.0633.57
20246.585.637.50
202316.9015.869.83
2022(20.05)(20.78)(20.09)
2021(4.37)(4.73)(2.75)

Performance Statistics (Institutional)

Inception*  to March 31, 2026

*August 1, 2021

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Cap Core fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Small Cap Core fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Developing Markets (gross)

KAR Developing Markets (net)

MSCI® Emerging Markets Index
Alpha 0.28 (0.62) 0.00
Sharpe Ratio 0.06 (0.01) 0.04
Information Ratio 0.02 (0.09) N/A
Beta 0.72 0.72 1.00
Downside Capture 75.85 77.66 100.00
Tracking Error 8.37 8.37 N/A