The Portfolio has followed and complied with its policy objective.

Despite the 1Q2024 setback and the impact it has had on our longer-term performance statistics, we remain focused on executing our strategy with great care and discipline.

We manage our portfolios with modest sector and geographic active bets resulting in, on average, a negligible contribution to our active performance.
Our outperformance/underperformance is primarily driven by stock selection.

For the 1Q2024 stock selection was the main detractor with a negative contribution of -4.41% while sector detraction was a 0.56%.

Our underweight in the Consumer Staples sector, a position we've held throughout 2023, had a positive allocation effect as our concerns around valuation multiples and earnings growth.

Our cash holdings and materials underweight detracted from our allocation effect as the acquisition of Newcrest by Newmont left our clients with holdings in Newmont and some cash. From a unit cost of production point of view Newmont is an inferior business.