Builders Fund

March 31, 2025

Fund Overview

• The Builders Fund is a fund-of-funds that invests mainly in Steadyhand’s four stand-alone equity funds — Steadyhand Equity Fund, Steadyhand Global Equity Fund, Steadyhand Small-Cap Equity Fund, and Steadyhand Global Small-Cap Equity Fund. Its an all-stock portfolio designed for growth-oriented investors.
  
• The underlying fund mix is managed by Chief Investment Officer Salman Ahmed, with Chair and co-founder Tom Bradley as co-manager.
  

Portfolio Specifics

• The fund rose modestly in the quarter despite the volatility in stock markets. Our holdings in defensive industries such as financial services, industrial products, and consumer products contributed to performance, while our limited exposure to mega-cap technology companies (which saw significant declines) also helped.
  
• Investments are allocated roughly two-thirds towards foreign businesses and one-third towards companies based in Canada. The bias to foreign companies reflects a broader opportunity set outside of Canada, particularly in important industries like healthcare, technology, and consumer products & services.
  
• The largest area of investment, industrial goods & services (31% of the portfolio), includes a diverse mix of companies such as RB Global (industrial auctioneer), RPM International (specialty coatings and sealants), Saab (aerospace, defense, and radar specialist), Badger Infrastructure Solutions (hydrovac services), and CN Rail. Performance of the group was mixed in the quarter.
  
• Financial services companies make up 20% of the fund. Large holdings include Visa and TMX Group. We also own a group of leading insurance companies, including Intact Financial, Munich Re Group, and AIA Group. CME Group (derivatives marketplace), S&P Global (financial data and analytics), and DBS Group Holdings (banking) provide additional diversification. Many of these holdings were strong performers in the quarter.
  
• The technology sector is another important area of investment, comprising 15%. Our focus is on established industry leaders such as Microsoft. Other investments include Qualcomm (chips for smartphones), Constellation Software (software), and Astera Labs (connectivity solutions for data centers). Performance was challenging for this group.
  
• The portfolio has only modest exposure to commodity stocks (6%), due to their inherent cyclicality. Holdings include Torex Gold Resources (gold producer), Capstone Copper (copper miner), TotalEnergies (oil & gas), Interfor (lumber), and Cameco (uranium). Returns were mixed, with our gold holdings being standouts.
  

Positioning

• Refer to the underlying funds for details on their positioning.
  

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.