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In the final quarter of 2025, worldwide equity markets demonstrated significant advancement, concluding the year on a positive trajectory. This growth was largely attributed to substantial capital deployment into artificial intelligence infrastructure, impressive corporate earnings reports, and an influx of liquidity provided by the U.S. Federal Reserve. The U.S. successfully maintained inflation within desirable limits, a factor that further encouraged the Federal Reserve's accommodative stance.

The fund's investment strategy proved effective, surpassing the MSCI All Country World ex-USA Growth Index. This outperformance was primarily driven by astute stock selections across diverse sectors such as financials, communication services, and healthcare. However, the fund's overall returns were partially tempered by its sector allocation decisions, specifically its larger exposure to communication services and a more conservative position in information technology.

As the economic landscape showed signs of continuous acceleration, the fund strategically emphasized growth and valuation upside factors in its portfolio construction. Conversely, it adopted an underweight position in factors related to total capital return and quality, reflecting a deliberate approach to capitalize on current market dynamics and future economic projections. This focused strategy aims to optimize returns in an environment characterized by sustained economic expansion.

The strong performance of global equities in late 2025, driven by technological advancements and supportive economic policies, highlights the importance of adaptive investment strategies. By aligning with burgeoning sectors like AI and carefully managing portfolio exposures, investors can navigate dynamic markets and pursue sustainable growth. This period underscores the potential for strategic asset allocation to harness market momentum, fostering continued positive outcomes.