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

Relative exposures to Alphabet Inc. and Danaher Corp. contributed to the Fund’s performance. The Fund’s relative exposures to Roper Technologies Inc. and Automatic Data Processing Inc. detracted from performance.

At a sector level, stock selection in the communication services and consumer discretionary sectors contributed to the Fund’s performance. Stock selection within the financials and health care sectors detracted from performance. At a regional level, selection within the U.S. and overweight exposures to Switzerland and Taiwan contributed to performance. Stock selection in the U.K. detracted from performance.

Portfolio activity

The sub-advisor sold the Fund’s holding in Oracle Corp. and reduced the Fund’s holding in Compass Group PLC.