June Report

• The Fund returned -0.1% in June, with relative performance lagging the benchmark following three strong months of significant outperformance.
• Global equities extended their rally as trade tensions eased, inflation remained contained, and central banks signalled a more dovish policy outlook.
• Key contributors included Cantaloupe and NICE Information Service, while North West Company and Moonpig detracted. Four new positions were initiated, targeting long-term growth across digital infrastructure, clean energy, and financial technology.

Top Holdings (alphabetically)

Cantaloupe, Inc.

United States

Financials

Cantaloupe, Inc. is a digital payments and software services company, which engages in the provision of end-to-end technology solutions for the unattended retail market. The firm focuses on transforming the unattended retail community by offering one integrated solution for payments processing, logistics, and back-office management. The company was founded by George Raymond Jensen Jr. in January 1992 and is headquartered in Malvern, PA.

ExlService Holdings, Inc.

United States

Industrials

ExlService Holdings, Inc. is an operations management and analytics company, which engages in providing business process management. It operates through the following segments: Insurance, Healthcare, Travel, Transportation, and Logistics, Finance and Accounting, Analytic, and All Other. The Insurance segment serves property and casualty insurance, life insurance, disability insurance, annuity, and retirement services companies. The Healthcare segment offers services related to care management or population health, payment integrity, revenue optimization, and customer engagement. The Travel, Transportation, and Logistics segment includes business processes in corporate and leisure travel such as reservations, customer service, fulfillment, and finance and accounting. The Finance and Accounting segment is comprised of procure-to-pay, order-to-cash, hire-to-retire, record-to-report, regulatory reporting, financial planning and analysis, audit and assurance, treasury, and tax processes. The Analytics segment consists of driving improved business outcomes for customers by generating data-driven insights. The All-Other segment is involved in banking, financial, utilities, and consulting services. The company was founded by Vikram Talwar and Rohit Kapoor in April 1999 and is headquartered in New York, NY.

Hilan Ltd.

Israel

Industrials

Hilan Ltd. engages in the provision of Software as a Service (SaaS) for the purpose of managing the enterprise human capital. Its solutions include payroll, human resources, time and attendance, pension, analytics, and business process outsourcing (BPO). The firm offers its services to the industry, high-tech, finance, academic, communications, healthcare, municipal, transportation, retail, education, government, social care, associations, and hotels sectors. It operates through the following segments: Payroll Services, Human Resources, and Organizational Systems, Business Solutions, Computing Infrastructures, and Marketing of Software Products. The Payroll Services, Human Resources, and Organizational Systems segment provides payroll management services, pension operations, enterprise resource planning, other value-added services, and attendance, human resources, business, financial, and relationship management. The Business Solutions segment is involved in the sale of outsourcing and technological value-added solutions, as well as solutions and projects in the field of computing, digital, and innovation. The Computing Infrastructures segment sells solutions in the field of computing infrastructures, managed public and private clouds, advanced information security, and cyber. The Marketing of Software Products segment is composed of the distribution and assimilation of software products and solutions in the field of control, data, analytics and business intelligence, infrastructures and applications in the information technology world, document and content management, information and cyber security, and content delivery network. The company was founded on December 16, 1992 and is headquartered in Tel Aviv, Israel.

NICE Information Service Co., Ltd.

Korea, Republic Of

Industrials

NICE Information Service Co., Ltd. engages in the provision of credit information services. It operates through the following business divisions: Corporate information, Credit bureau, Asset management and Others. The Corporate information business division offers corporate information provision, consulting and technical consulting bureau services. The Credit bureau business division offers individual credit information provision and consulting services. The Asset management business division offers bond collection and credit survey services. The Others business division offers other services such as data analysis. The company was founded on February 28,1985 and is headquartered in Seoul, South Korea.

NSD Co., Ltd.

Japan

Information Technology

NSD Co., Ltd. engages in the provision of information technology services. It offers System Solution Service that includes system development, system service, and sales of packaged software and system products. The company was founded on April 8, 1969 and is headquartered in Tokyo, Japan.

Global equities extended their rally in June, supported by easing trade tensions, sustained earnings optimism, and growing expectations of central bank rate cuts. The 90-day US-China tariff truce agreed in May held firm, with both sides announcing a framework to maintain reduced reciprocal tariffs. This added clarity on trade policy contributed to improved sentiment across global markets, despite lingering geopolitical risks.

Central banks in major economies struck a more dovish tone, with several signalling potential rate cuts later in the year. This shift helped drive yields lower and supported equity valuations. Inflation remained contained across most developed markets. In the US, the consumer price index rose 2.35% year on year in June, broadly in line with expectations and within the Federal Reserve’s target range. In Europe, preliminary inflation data showed a modest uptick but stayed manageable, reinforcing the case for further monetary support.

US equities continued to perform well, supported by momentum in technology and AI-related companies. Small and mid-sized companies also participated in the rally as investor appetite broadened. In Europe, performance was mixed. Some markets advanced on the back of fiscal support and political stability, while others lagged due to profit-taking and currency-related pressures. Sector rotation weighed on large caps, particularly in areas that had led earlier in the year.

Asian markets also posted gains. Japan benefited from a weaker currency and resilient domestic demand, while Chinese equities advanced on the back of targeted stimulus and ongoing trade de-escalation. Taiwan and Korea remained standouts, lifted by strong results across their technology sectors and favourable currency trends.

Overall, the macro backdrop remained constructive. While investors welcomed policy clarity and improving sentiment, attention remains focused on the durability of the US-China agreement, inflationary pressures, and broader geopolitical risks.

Portfolio highlights

The Fund returned -0.1% in June, trailing its benchmark following three consecutive months of outperformance.

The underperformance in June was largely attributable to North American positions, with four specific holdings driving the bulk of the decline.

North West Company, the Canadian retailer serving remote communities across North America, was a key detractor as wildfire-related disruptions, rising operating costs, and reduced government support weighed on its share price. While this position ultimately delivered a gain of over 20% during its life in the fund, we have now fully exited. Grand Canyon Education, a US-based education services provider, also declined as investors reacted to concerns surrounding the US spending bill. Nonetheless, we retain conviction in the company’s long-term prospects, supported by a resilient business model.

Topicus, a Canadian vertical market software business, experienced a modest pullback in June. However, it has since rebounded strongly and remains a solid contributor to long-term fund performance. On Holding, the Swiss-headquartered but US-listed athletic footwear brand, gave back some gains following notable appreciation in April and May. Despite this short-term retracement, the business remains well positioned within our long-term thematic framework.

Cantaloupe was the top contributor during the month. The US-based provider of self-service payment and software solutions announced its acquisition by 365 Retail Markets in an $848 million all-cash transaction, representing a 34% premium to its prior share price. The stock rose sharply on the news, reflecting investor confidence in the strategic rationale, expected synergies, and Cantaloupe’s strong recent financial performance. With the deal now in place, the Fund is exiting the position.

NICE Information Service, a Korean provider of credit data and analytics, also delivered strong performance. The company benefited from rising demand for digital credit solutions and favourable momentum across Korea’s tech sector. Recent strategic acquisitions further supported its growth outlook, reinforcing investor confidence in its scalable business model.

The Fund initiated four new positions during the month. Nextracker, a global leader in solar tracking systems, offers exposure to the accelerating transition toward renewable energy. Attoss, a workforce management software provider, supports labour efficiency and compliance across key sectors. Shift, a Japanese software testing company, plays a critical role in improving digital reliability across industries. Mony Group, a UK-based financial services platform, enables consumer decision-making through trusted comparison tools and data-driven engagement. All four businesses align with the Fund’s focus on scalable models, recurring revenues, and structural growth drivers.

The Fund remains focused on investing in high-quality businesses with structural growth tailwinds, scalable models, and disciplined capital allocation, while actively managing portfolio risks amid an evolving macroeconomic backdrop.