Founders Fund

December 31, 2025

Fund Overview

• The Founders Fund is a balanced fund with a target asset mix of 60% stocks and 40% fixed income. To gain these exposures, it invests in Steadyhand’s other funds.
• Tom Bradley, Steadyhand’s Co-Founder, manages the fund along with Salman Ahmed. They have considerable scope to adjust the portfolio although without extremes in valuation and investor sentiment, their bias is to stay near the target mix.

Portfolio Specifics

• The Founders Fund had an 8.8% return in 2025, after fees. It was the 12th positive year in the fund’s 14-year history.
• All the underlying funds contributed this year, ranging from a 5.8% return for the Equity Fund to 22.1% for the Small-Cap Equity Fund. As noted in Bradley’s Brief, it was an unusual year with a narrow group of companies leading the way. Gold had a remarkable year, as did AI-related tech companies and Canadian banks.
• Founders finished the year in a defensive posture. During the Liberation Day selloff in April, we increased the equity exposure to over 62% of the fund, but have been dialing down the risk since the third quarter. We used strong stock markets to gradually reduce equity exposure. The fund is now below the long-term target of 60%. As part of the adjustment, we trimmed the weightings in the Small-Cap Equity and Global Small-Cap Equity Funds. Both funds have and will provide excellent returns but are more sensitive to market corrections.
• The fund’s fixed income holdings did well relative to the bond market but didn’t keep up with stocks in 2025. Bonds in Founders were up 2.9% for the year. Bond returns were moderated by rising interest rates at the end of the year although higher yields portend higher returns in the years to come. As always, the defensive characteristics of high-quality bonds are ever important in a diversified portfolio. As we noted in a recent Globe & Mail article, “They’ll be times when you wonder why you own them. That is, until they show up to save the day.”
• We hold a meaningful position in the Savings Fund for similar reasons – income and downside protection. It doesn’t have the same return potential as our other funds but enhances Founders’ diversification and liquidity, which, as noted above, we took advantage of in April.
• Notable transactions in the underlying funds during the quarter include the purchase of RESTAURANT BRANDS (Canada), LOWES (U.S.), ITOCHU (Japan) and K-BRO LINEN (Canada); and the sale of GREENBRIER (U.S.), PEPSICO (U.S.) and STEADFAST GROUP (Australia).

Positioning

• Despite the current excitement around stocks, Founders is maintaining an equity allocation below its long-term target and full positions in bonds and cash. As 2025 showed us, things can change quickly so we’re maintaining maximum flexibility to take advantage of whatever comes our way.
• As we always remind clients, Founders' returns are overwhelmingly driven by the 6 underlying funds. Their returns and strategies are laid out in the pages that follow. 

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.