Summary

• The Institute for Supply Management Services Purchasing Managers' Index surged to 54.4% in December, signaling continued strength in the sector responsible for more than two thirds of economic activity.
• The information technology sector delivered some of the portfolio's strongest performance in the fourth quarter.
• Lumentum Holdings is one of the few companies providing specialty lasers for optical transceiver manufacturers, which are critical components for artificial intelligence infrastructure.
• AeroVironment engineers and manufactures autonomous unmanned aircraft systems and counter systems.
• The Fund's outlook for U.S. small-cap stocks is optimistic, driven by favorable macroeconomic trends and easing monetary policy as the Federal Reserve resumes its rate-cutting cycle.

Market Overview

The U.S. economy concluded 2025 with a divergent picture: robust services activity contrasted sharply with persistent manufacturing weakness and a cooling labor market. The Institute for Supply Management (ISM) Services Purchasing Managers' Index (PMI) surged to 54.4% in December – the highest reading of

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