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Commentary

Q3 2025 Fund Commentary

Market Commentary

During the third quarter of 2025, enthusiasm for artificial intelligence (AI) continued, resulting in narrow leadership for equity market performance. The 10 largest companies represented nearly 62% of the index by weight and were responsible for 84% of the returns for the quarter. Equity market performance was dominated by select mega-capitalization information technology and communication services stocks.

Performance

The Fund’s relative exposure to NVIDIA Corp., Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and Monolithic Power Systems Inc. contributed to performance. NVIDIA’s stock rise was driven by earnings results, positive management commentary about improving gross margins, increasing production yields and the announcement of new strategic partnerships. TSMC’s outperformance was because of a better-than-expected earnings report and revenue forecast amid demand for its chip manufacturing capabilities. Monolithic’s enterprise data segment outperformed, contributing to sales growth and a better-than-expected earnings and forward outlook.

Relative exposure to Chipotle Mexican Grill Inc., Intuit Inc. and The Trade Desk Inc. detracted from performance. Chipotle shares sold off after the company reported mixed earnings results and lowered its forecast amid weak traffic trends and declining same-store sales. Intuit, despite reporting positive earnings, was affected the muted forward outlook the company provided. Trade Desk’s stock sold off after it reported mixed results, a weaker-than-expected forecast and concerns about competitive threats.

At a sector level, a lack of exposure to real estate and consumer staples contributed to performance. Stock selection in communication services, consumer discretionary and information technology detracted from performance. Overweight exposure to financials and industrials also detracted from performance.

Portfolio Activity

Snowflake Inc. was added because the sub-advisor believes its consumption-based model, mission-critical role in enterprise data infrastructure and exposure to AI workloads offer positive potential. Equifax Inc. was added as the sub-advisor expects it to benefit from its multi-year technology transformation and cloud migration, which is now nearing completion.

Workday Inc. was sold in favour of the Snowflake purchase, which the sub-advisor believes is an upgrade to the portfolio.

Outlook

There are no new developments to report at this time.

Disclaimer

The commentaries on the company specific information and purchases and sales were provided by the fund manager. Canada Life Investment Management Ltd. will not be liable for any loss, or damages whatsoever, whether directly or indirectly incurred, arising out of the use or misuse of errors or omissions in any information contained in this commentary. The data provided in this commentary is for information purposes only and, except where otherwise indicated, is current as of June 30, 2025.

The views expressed in this commentary are those of fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Prospective investors should review the offering documents relating to any investment carefully before making an investment decision and should ask their Advisor for advice based on their specific circumstances.

The content of this commentary (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This document may contain forward-looking information which reflect our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of June 30, 2025. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

There can be no assurance that the Fund’s return or volatility targets will be met, or met over any particular time horizon. Targeted returns and volatility should be evaluated over the time period indicated and not over shorter periods. Targeted returns are not actual performance and should not be relied upon as an indication of actual or future performance.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Counsel Portfolios are managed by Canada Life Investment Management Ltd. Counsel Portfolios are distributed by Quadrus Investment Services Ltd., IPC Investment Corporation, and IPC Securities Corporation, and may also be available through other authorized dealers in Canada.