Small-Cap Equity Fund

September 30, 2025

Market Context

• The Canadian small-cap market, as measured by the Morningstar Canada Small Cap Index, delivered strong returns in the third quarter, led by a rally in gold producers and other resource-oriented companies. The index advanced 21.6% during the quarter and is up 39.1% year-to-date.

Portfolio Specifics

• At quarter-end, the fund held 22 companies, with most based in Canada and 11% exposure to U.S. companies concentrated in the industrials and healthcare sectors.
• While performance was strong in absolute terms, the Small-Cap Equity fund modestly trailed its benchmark. This relative underperformance reflected our manager, Galibier’s, disciplined focus on quality, which resulted in limited exposure to speculative junior gold companies that were among the largest drivers of index gains. The manager remains confident that this positioning is consistent with the fund’s long-term mandate to focus on sustainable growth and capital preservation.
• Performance was supported by solid gains across industrial, technology, and select resource holdings, which helped offset weakness in financials and consumer discretionary names.
• Gold producers were the top contributors to returns. EQUINOX GOLD (+95.1%) and TOREX GOLD RESOURCES (+32.2%) delivered strong gains, benefiting from rising gold prices and operational improvements.
• BADGER INFRASTRUCTURE (+29.0%) and CAPSTONE COPPER (+41.4%) were also notable contributors. Badger’s refreshed management team has driven operational improvements, while cyclical demand for hydrovac services supported earnings. Capstone’s strong performance reflected a rally in copper prices driven by global supply disruptions. Galibier trimmed its position in Capstone to manage exposure following the sharp rise.

Positioning

• The portfolio has a unique composition, with key areas of investment being capital goods, industrial services, food & beverage, and consumer discretionary companies. This is in contrast to the small-cap market’s heavy focus on resource companies.

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.