Equity Fund

December 31, 2025

Market Context

• Canadian equity markets, as measured by the Morningstar Canada Index, rose 31.4%, one of its strongest calendar year returns on record.
• Resource companies, specifically those involved in precious metals, had a record year on the back of a sharp increase in the price of gold. 
• Global stocks, as measured by the Morningstar Developed Markets Index, gained 15.5% in Canadian dollars.

Portfolio Specifics

• The portfolio held 27 companies at quarter-end, reflecting a deliberately concentrated, high-conviction approach designed to capture long-term value from high-quality businesses rather than closely track a benchmark. 
• The portfolio experienced mixed results in the year. It was among the best performers in the first part of 2025 during a period of economic uncertainty and market volatility. The trend reversed when animal spirits returned. Overall, the fund gained 5.8% in the year, which lagged equity markets.  
• The manager, Fiera Capital, focuses on market leaders with consistent cashflows trading at reasonable prices. Few resource companies meet these criteria. The philosophy has led to strong long-term results but lagging results are not surprising in a year when gold mining companies were the main driver of results in Canada. 
• Two new stocks were purchased in the fourth quarter. QUÉBECOR was added as the manager gained confidence in the company’s growth strategy in its core Québec telecom and media operations, along with improving national wireless exposure following the Freedom Mobile acquisition. RESTAURANT BRANDS was also added to the portfolio. The owner of the Tim Hortons brand has successfully applied its learnings across its broader portfolio which includes Burger King and Popeyes.
• PEPSICO has struggled with product-mix challenges. Though Fiera is optimistic that the management team can turn performance around, it was sold to make way for the new positions.

Positioning

• The fund is comprised of a concentrated group of best-in-class businesses operating in a range of industries with solid long-term demand profiles. Focus is on market leaders that generate steady profits and have proven leaders at the helm. 

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.