Nomura Emerging Markets Fund on SK Square Co. Ltd.
Thesis
The fund continued to benefit from its exposure to SK Square in South Korea. SK Square's net asset value increased as the valuation of its investment in SK Hynix rose. Expectations for improved shareholder-return policies also helped narrow the discount to net asset value, strengthening the holding-company thesis.
“investors' expectation for improved shareholder return policies contributed to narrowing the discount to their net asset values.”
Key risks
- High dependence on the valuation of SK Hynix because SK Square invests most of its assets in SK Hynix