Summary

• Global equities collectively declined over the first quarter of 2026 as a sharp drawdown in March more than offset gains earlier in the period.
• UK-based integrated oil and gas conglomerate BP performed strongly due to a sharp rise in oil prices, driven by geopolitical disruption linked to the Iran war.
• ICON declined sharply in February after disclosing that an internal accounting investigation found preliminary evidence that revenue for fiscal years 2023 and 2024 may have been overstated.
• The Templeton International ADR Equity SMA's focus remains on selectively deploying capital into high-quality businesses that the managers believe have been indiscriminately sold off but retain long-term fundamentals.
• The managers are orienting the portfolio toward businesses believed to have greater exposure to tangible assets and lower risk of structural obsolescence.

Key Takeaways

• Markets: Global equities collectively declined over the first quarter of 2026 as a sharp drawdown in March more than offset gains earlier in the period.

• Contributors: Stock selection in the industrials