Summary

• Morningstar’s March reassessment of software companies drove a larger-than-usual portion of the Index’s turnover this quarter.
• Style exposure remained mostly in line with the prior quarter’s, with value remaining a notable overweight.
• Contrarian positioning remains with 22% discount to fair value, according to Morningstar’s price to fair value ratio.
• Sector shifts continue to be led by a decrease in industrials and tech and an increase in consumer discretionary and financials.

AI-driven moat rating downgrades played a major role in the Moat Index's Q2 review, reshaping tech exposure while surfacing attractively priced opportunities across other sectors.

Index performance is not illustrative of fund performance. It is not