The investment objective of the Sub-Fund is to invest its assets primarily in equity securities and other equivalent securities of companies admitted to an Official Listing or dealt in, on a Regulated Market in developed countries of Europe, USA and Asia.

Equities in developed markets continued to rally in the fourth quarter of the year, capping a year of impressive gains with many equity indices achieving or approaching new highs in many developed markets. Most noteworthy, for the first time after a long period of US exceptionalism and subsequent stock market outperformance relative to the rest of the world, stock markets in certain other regions performed better than their US counterparts, ending a year where certain regions outperformed the US. In the US, the stock market realized further gains despite the government shutdown and a more mixed picture emerging in the labor market. Nevertheless, the US market wobbled towards the end of the year and volatility increased somewhat. Moreover, towards the end of the quarter some broadening of the market seemed to take place with some rotation occurring from growth towards value sectors. The FED’s decision to cut interest rates in December had a positive impact on the market while further interest rate cuts might be forthcoming in 2026. In Europe, equity markets also delivered positive gains although returns differed among the regions with Spain registering impressive gains while on the other end, the Netherlands were much more subdued. Financials continued to perform particularly well even though macroeconomic conditions across the eurozone remained mixed. Inflation pressures eased though, and the ECB remained on hold in December 2025. Lastly, Japanese equities extended their rally during the last quarter of the year. The Information Technology sector rallied in line with broader global trends, registering impressive gains. Furthermore, political developments domestically lent further support to the rally in Japanese equities. The election of Takaichi as prime minister was seen as market friendly as Takaichi was expected to be a proponent of broader fiscal stimulus. The Bank of Japan raised rates in December while further rate hikes may occur in 2026.

During the fourth quarter of the year, the Funds remained relatively fully invested for the most part of the last quarter. Developed stock markets rallied further in the fourth quarter of the year, with many indices reaching or approaching new all-time highs. For the first time after a long period of US exceptionalism and subsequent stock market outperformance relative to the rest of the world, stock markets in certain other regions performed better than their US counterparts, capping a year where certain regions outperformed the US. More specifically, in the US the fund maintained a somewhat cautious stance. The Global Equity Fund gradually shifted to a more neutral stance in the Information Technology sector and increased exposure to other sectors as a broadening of the rally was expected. The Fund maintained its preference for the Financials sector. In Europe, the Fund increased exposure to the Industrials sector. Certain specific European industrials were deemed as a more attractive play on the AI theme, in terms of valuation, while also having more defensive characteristics stemming from their activities in other segments beyond AI. Moreover, the Fund opted to further increase its exposure to the Financials sector in Europe. Overall, Financials remained the preferred sector across regions for the Fund. Among other names, the Fund increased its exposure to Banco Santander and Deutsche Bank but not exclusively. Lastly, in Japan the Fund for the better part of the fourth quarter was overly invested in Japanese equities. The Japanese equity market registered further gains in the fourth quarter. The rally was particularly fueled in the last quarter by Takaichi’s election as prime minister who was expected to pursue more market friendly policies such as broader fiscal stimulus. The Fund opted to take profits during the last month of the year, moving to a more neutral stance on Japan.