Q4 2025 Fund Commentary

Commentary and opinions are provided by Setanta Asset Management Limited.

Market commentary

Global equity markets rose during the year, with the MSCI World Net Total Return Index (CAD) rising 15.4%. Early in the year, the launch of low-cost Chinese artificial intelligence (AI) app DeepSeek caused AI-related stocks to fall. This was followed by the announcement of U.S. tariffs in early April, which led equities more broadly to decline. However, from its early-April low, the overall equity market recovered to end the year at an all-time high.

Although less pronounced than in the previous two years, the AI theme was a key driver of overall market returns. Many information technology companies increased spending plans. Later in the year, investors became concerned about the size and potential return on this invested capital.

Performance

The Fund’s relative exposures to Alphabet Inc., Samsung Electronics Co. Ltd. and Applied Materials Inc. contributed to performance. Relative exposures to Oracle Corp., Netflix Inc. and Meta Platforms Inc. detracted from performance.

At a sector level, underweight exposure to the information technology sector and overweight exposure to the health care sector contributed to the Fund’s performance. Stock selection in the financials and health care sectors detracted from performance.

Portfolio activity

The sub-advisor added Novo Nordisk AS to the Fund and sold a holding in Viscofan SA.

Outlook

The sub-advisor looks for attractively valued companies in global markets. The sub-advisor’s investment decisions are not driven by macroeconomic events and does not include any macroeconomic forecasting in the search or selection process.