Q2 2026 Fund Commentary

Commentary and opinions are provided by Acadian Asset Management LLC.

Market commentary

Global equities rose in the second quarter of 2026 despite heightened geopolitical tensions and inflation concerns following the temporary disruption to global oil supplies in the Middle East. As tensions eased and energy prices fell, investor sentiment improved. Artificial intelligence (AI) was a key market driver, with major U.S. hyperscalers increasing capital expenditures. U.S. equities rose, led by information technology and AI-related stocks amid strong earnings, cloud-computing demand and solid economic activity. However, persistent inflation pressures tempered optimism late in the quarter.

Canadian equities also rose as investors favoured their valuations, defensive characteristics and financials sector exposure amid ongoing trade uncertainty. Canadian banks were the primary contributors, while information technology and materials sector companies added support. Economic concerns eased as domestic growth proved resilient, with a stronger-than-expected 0.5% gross domestic product increase in April. A stronger Canadian dollar and improved geopolitical backdrop further supported returns.

Performance

At a country level, stock selection in Canada and Switzerland contributed to the Fund’s performance, as did overweight exposure to Taiwan.

Relative exposure to The Bank of Nova Scotia, ABB Ltd. and Realtek Semiconductor Corp. contributed to the Fund’s performance.

Selection in the U.S. and Thailand detracted from the Fund’s performance. Underweight exposure to Germany and overweight exposure to Thailand also detracted from performance.

The Fund’s relative exposure to Cisco Systems Inc., Siemens AG and PTT Exploration & Production PCL detracted from performance.

Portfolio activity

The sub-advisor added The Coca-Cola Co., UnitedHealth Group Inc., The Cigna Group and VICI Properties Inc. to the Fund. Cisco Systems was increased.

Alphabet Inc., Koninklijke Ahold Delhaize NV and PTT Exploration & Production were sold. Johnson & Johnson and Cardinal Health Inc. were reduced.

Outlook

Over the period, the Fund saw more assets flow into the U.S., Japan and Denmark. Negative asset flow was seen in Italy, the U.K. and Norway. At the sector level, more assets flowed into the information technology, financials and real estate sectors. Negative asset flow was seen in the health care, energy and communication services sectors.

At quarter-end, at a country level, the Fund held overweight exposure to Canada, Taiwan and Switzerland. Underweight exposures were in Japan, the U.K. and France. From a sector level, the sub-advisor’s focus was on information technology, real estate and health care. The Fund held underweight exposure to the industrials, utilities and consumer staples sectors.