Q4 2025 Fund Commentary

Commentary and opinions are provided by Mackenzie Investments.

Market commentary

Canada’s economy showed signs of strain in the fourth quarter as U.S. tariffs and weakening trade flows continued to pressure manufacturing and export?oriented sectors. Business confidence softened, and labour?market momentum faded, although household spending remained stable heading into year?end.

The Bank of Canada held its policy rate at 2.25% in December following its 25-basis-point rate cut in October, citing moderating inflation and persistent economic uncertainty. Canada’s unemployment rate rose to 6.8% in December, as labour?force growth outpaced hiring and trade?sensitive industries showed renewed weakness.

The Canadian equity market advanced in the quarter, with the S&P/TSX Composite Index rising about 6.3%, supported by strength in the materials and consumer discretionary sectors. Information technology also contributed, while energy lagged broader market gains amid softer crude oil prices through year?end.

Performance

Overweight exposures to Aritzia Inc., K92 Mining Inc. and OceanaGold Corp. contributed to the Fund’s performance. Aritzia shares rose because of holiday-season demand and inventory management, which drove sales growth and margin improvement. K92 Mining and OceanaGold benefited from higher gold prices.

Overweight exposure to Maple Leaf Foods Inc. detracted from the Fund’s performance. No ownership in Great-West Lifeco Inc. and Power Corp. of Canada also detracted from performance.

At a sector level, exposure to the consumer discretionary and materials sectors contributed to the Fund’s performance. Stock selection among growth factor stocks contributed to performance. Stock selection in the financials sector detracted from performance, as did exposure to quality factor stocks.

Portfolio activity

Portfolio activity is an outcome of the sub-advisor’s process, which is driven by stock selection, optimization and a vetting process that is run daily.