February Report

• The Fund returned -3.3%, while the benchmark delivered -0.3% in February, as global equities faced volatility from uncertainties around US tariffs and key economic data, despite resilient corporate earnings.
• Profit-taking in large-cap US tech stocks and caution in highly valued sectors, influenced by shifts in interest rate expectations, contributed to the Fund’s underperformance, particularly in the technology and communications services sectors.
• The Fund’s top performers were Uber, Visa, and Sony Group, and it established a new position in Spotify Technology, the world’s largest audio streaming platform.

Top Holdings (alphabetically)

Alphabet Inc. Class A

United States

Communication Services

Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

Amazon.com, Inc.

United States

Consumer Discretionary

Amazon.com, Inc. is an online retailer that offers a wide range of products. The Company products include books, music, computers, electronics and numerous other products. Amazon offers personalized shopping services, Web-based credit card payment, and direct shipping to customers. Amazon also operates a cloud platform offering services globally.

Apple Inc.

United States

Information Technology

Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. Apple sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers.

Meta Platforms Inc Class A

United States

Communication Services

Meta Platforms, Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. Meta Platform is also involved in advertisements, augmented, and virtual reality.

Microsoft Corporation

United States

Information Technology

Microsoft Corporation develops, manufactures, licenses, sells, and supports software products. The Company offers operating system software, server application software, business and consumer applications software, software development tools, and Internet and intranet software. Microsoft also develops video game consoles and digital music entertainment devices.

Netflix, Inc.

United States

Communication Services

Netflix, Inc. engages in providing entertainment services. It also offers activities for leisure time, entertainment video, video gaming, and other sources of entertainment. It operates through the United States and International geographic segments. The company was founded by Marc Randolph and Wilmot Reed Hastings on August 29, 1997 and is headquartered in Los Gatos, CA.

NVIDIA Corporation

United States

Information Technology

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software. The Company offers products that provides interactive 3D graphics to the mainstream personal computer market.

ServiceNow, Inc.

United States

Information Technology

ServiceNow, Inc. provides enterprise information technology (IT) management software. The Company designs, develops, and produces prepackaged computer software, cloud services, and IT service management platform. ServiceNow serves customers throughout the United States.

Taiwan Semiconductor Manufactu

United States

Information Technology

Taiwan Semiconductor Manufacturing Company, Ltd. manufactures and markets integrated circuits. The Company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production, and design services. TSMC's ICs are used in computer, communication, consumer electronics, automotive, and industrial equipment industries.

Visa Inc. Class A

United States

Financials

Visa Inc. operates a retail electronic payments network and manages global financial services. The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities.

Global equity markets faced headwinds in February with rising investor caution amid ongoing macroeconomic uncertainty. Growth stocks significantly underperformed value however a stronger US dollar added to equity returns in Australian dollar terms.

In the US, economic data remained robust, with retail sales accelerating in January. The labour market showed resilience, and inflationary pressures continued to ease, supporting expectations of potential interest rate cuts later in the year.

The Eurozone remained stable, with composite purchasing managers’ index (PMI) data indicating a steady but moderate expansion. However, retail sales growth slowed in January.

In China, manufacturing activity remained in expansionary territory, with the Caixin Manufacturing PMI indicated accelerating expansion. However, broader economic conditions continued to underwhelm, with weak consumer spending and ongoing property sector challenges.

The Fund’s largest overweight sectors were communication services, consumer discretionary, and information technology, with the largest underweight sectors being financials, consumer staples, and energy. While strong stock selection helped offset broader market weakness, the Fund’s overweight exposure to growth sectors detracted from relative performance.

The Fund’s underweight position in US-based global automotive and clean energy company Tesla was the largest contributor to relative returns in February. The stock declined sharply as vehicle sales fell across key markets such as Europe and China, with increasing competition from Chinese EV manufacturers including BYD. Investor concerns about CEO Elon Musk’s focus on politics, alongside disappointing fourth-quarter earnings, further pressured the stock. The Fund plans to maintain its zero position.

Uber Technologies is a US-based provider of ride-hailing, food delivery and courier services worldwide. It outperformed after Pershing Square’s Bill Ackman revealed a significant investment in the company. He argued that the market was underappreciating Uber’s scalable platform, network effects, and long-term growth potential. Ackman also rejected concerns that robotaxis represented a competitive threat, boosting investor sentiment.

US-based global payments platform Visa also contributed positively. This followed a successful investor day, where it outlined strong long-term growth prospects, reinforcing confidence in its business model.

The Japanese entertainment and electronics group Sony was another strong performer. It benefited from robust demand for its PlayStation 5 consoles and gaming content. The company’s strong holiday-season sales and expanding subscriber base for PlayStation Plus supported investor confidence.

Taiwan-based advanced chip manufacturer TSMC was the largest detractor from relative returns in February. The stock declined due to investor concerns over potential US tariffs on Taiwanese exporters, which triggered a broader sell-off in the sector. However, TSMC announced an additional US$100 billion investment in fabrication plants and advanced packaging facilities in Arizona, which are expected to mitigate near-term tariff risks.

US-based e-commerce and cloud computing company Amazon also detracted from returns. The stock underperformed as macroeconomic concerns weighed on investor sentiment and consumer confidence appeared to weaken. Google-owner Alphabet faced renewed regulatory scrutiny, contributing to a decline in its share price alongside broader weakness in growth stocks.

The Fund established a new position in Sweden-based Spotify Technology. It operates the world’s largest audio streaming platform, offering music, podcasts, and other digital content to over 600 million users globally.

Despite near-term volatility, the Fund remains focused on dynamic growth stocks.  Expected earnings upgrades should help the Fund outperform as economic growth moderates.