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.

Gold extended its rally in the fourth quarter. Prices peaked above USD$4,500 per ounce in December, supported by central?bank buying, a weaker U.S. dollar and resumed ETF inflows that reinforced gold’s role as the market’s preferred hedge amid elevated global uncertainty.

Performance

Relative exposures to Rio2 Ltd. and Discovery Silver Corp. contributed to the Fund’s performance. Rio2 stock rose as the company ramped up its Fenix gold mine in Chile. The company has a large resource base and recently added gold and copper options to its portfolio. Discovery Silver advanced its silver development project in Mexico where the government is more supportive of the permitting process..

Relative exposure to Osisko Gold Royalties Ltd. detracted from performance. Royalty companies are less exposed to higher gold prices and face the challenge of replenishing their portfolios as better financing choices become available to operators.

At a sector level, stock selection contributed to performance, as did the Fund’s balanced exposure to large-, mid- and small-capitalization companies. Exposure to gold contributed to performance as gold prices rose 65% in U.S. dollars (57% in Canadian dollars). Security selection detracted from performance.

Portfolio activity

The sub-advisor added Eldorado Gold Corp. and Snowline Gold Corp. to the Fund and increased a holding in Metalla Royalty & Streaming Ltd. Harmony Gold Mining Co. Ltd. was sold and Equinox Gold Corp. was trimmed. All trades were based on the risk/reward profile of the individual companies.