Q4 2025 Fund Commentary

Commentary and opinions are provided by Mackenzie Investments.

Market commentary

The global economy remained resilient in the fourth quarter despite policy uncertainty and the effects of the prolonged U.S. government shutdown. Investor sentiment improved as inflation eased across major regions and expectations grew for continued monetary and fiscal policy support into 2026. Non?U.S. markets benefited from a weaker U.S. dollar and improving valuations, while Asia and Europe saw stronger earnings momentum.

Central banks maintained or extended easing cycles. The U.S. Federal Reserve Board delivered additional rate cuts in October and December, while other major policymakers signaled that accommodative policy conditions will persist. These measures helped sustain risk appetite even as global manufacturing remained soft.

Global equity markets rose. The MSCI World Index approached record levels, supported by solid earnings, broadening participation beyond U.S. mega?capitalization stocks and continued enthusiasm for AI. Emerging markets outperformed developed market peers, helped by improved sentiment, a favourable currency backdrop and stronger relative earnings trends.

Performance

Stock selection in Canada and the U.S. contributed to Fund’s performance. Stock selection in the utilities sector also contributed to performance. Overweight positions in ATCO Ltd. and PACS Group Inc., as well as an underweight position in The Southern Co., contributed to performance.

Stock selection in Spain detracted from the Fund’s performance. An allocation to the consumer discretionary sector also detracted from performance. An underweight position in Iberdrola SA and overweight positions in National Fuel Gas Co. and Perdoceo Education Corp. detracted from performance.

Portfolio activity

Portfolio activity during any the quarter is an outcome of a disciplined process that is driven by quantitative models.