Summary

• The US Sustainable Economy portfolio underperformed the Russell 1000 benchmark in the first quarter of 2026, primarily due to a structural lack of exposure to the surging Energy sector.
• Pharmaceutical and biotechnology holdings significantly outperformed the sector, producing a substantial positive stock-specific contribution to portfolio returns within the Health Care category.
• The portfolio's underweight position in Tesla generated the largest single positive active contribution to return in the period as the stock fell sharply due to weakening demand and competitive pressure.
• Applied Materials rallied strongly on a blowout February earnings beat, where management positioned the company as a direct beneficiary of accelerating artificial intelligence infrastructure investment.
• Qualcomm underperformance was driven by a sharp sell-off after record fiscal Q1 results were overshadowed by disappointing forward guidance and concerns regarding Apple's development of in-house modem chips.

Performance

The US Sustainable Economy portfolio underperformed the Russell 1000 benchmark in the first quarter of 2026. The primary source of underperformance was the portfolio's structural lack of exposure to Energy, in line with Impax's fossil

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