Q1 2026 Fund Commentary

Commentary and opinions are provided by C WorldWide Asset Management.

Market commentary

The escalation of conflict in the Middle East made March a difficult month for global capital markets. With energy prices surging, most risk assets declined, and few areas provided shelter apart from cash and crude oil. The sharp drawdown in March erased much of the gains that international equity markets had built in January and February, leaving the broader market with modest losses for the full first quarter of 2026. The disruption raised broad concerns about energy supply chains, the outlook for inflation and the potential effects on economic growth.

Performance

A holding in Contemporary Amperex Technology Co. Ltd. contributed to the Fund’s performance during the quarter. The company, which is the world’s largest battery producer, released strong financial results during the quarter. Revenue and net income both rose over the prior year on the back of improved margins and high-capacity utilization. The company’s production facilities operated near full capacity, and additional capacity under construction suggests expectations of continued demand growth. In the sub-advisor’s view, the conflict in the Middle East may accelerate the electrification theme, as higher energy prices could encourage consumers to shift toward electric vehicles, supporting demand across the company’s passenger vehicle and energy storage systems divisions.

At a sector level, security selection in the health care and information technology sectors contributed to the Fund’s performance. From a country perspective, overweight allocation to Taiwan also contributed to performance.

A holding in HDFC Bank Ltd. detracted from the Fund’s performance during the quarter. The company’s shares declined with the broader Indian equity market, which came under pressure because of higher energy prices. A change in the company’s leadership added to investor uncertainty, though the appointment of an interim chairman helped stabilize sentiment. The banking sector in India remained under pressure because of tighter liquidity conditions, though HDFC Bank’s deposit growth remained healthy and its asset quality was strong. In the sub-advisor’s view, valuations had reached historically low levels.

Selection in the consumer discretionary and industrials sectors detracted from the Fund’s performance. From a country perspective, overweight allocation to India detracted from performance.

Portfolio activity

The sub-advisor reduced the Fund’s position in Taiwan Semiconductor Manufacturing Co. Ltd. as a matter of prudent portfolio rebalancing. The sub-advisor added to the Fund’s position in SAP SE, viewing the recent share price weakness as an opportunity. In the sub-advisor’s view, SAP has transformed from an on-premises business into a software-as-a-service model that could benefit from opportunities created by artificial intelligence. The decline in the company’s share price following recent results appeared to reflect a reporting issue rather than a change in business fundamentals.

Outlook

In the sub-advisor’s view, the Fund maintains a balanced structure of companies across different parts of the growth spectrum. The sub-advisor continues to focus on companies with strong cash flows and solid balance sheets, which it considers important for long-term investing and particularly relevant in the current environment.