Summary

• Global equity markets fell in US dollar terms during the first quarter as fears about the impact spiking energy prices would have on the global economy weighed on stocks.
• Franklin Mutual Quest Fund underperformed its benchmark, the 70% MSCI World Value Index and 30% Bloomberg US Corporate High Yield Index, for the quarter ended March 31, 2026.
• EOG Resources contributed to relative performance as the launch of military action in Iran drove up oil prices in March, despite investor concerns regarding Permian inventory depth.
• Adobe detracted from relative results amid ongoing worries about what the increasing use of artificial intelligence will mean for the firm's franchise position with creators.
• The fund management expects artificial intelligence spending to eventually slow, as the current pace is not sustainable with hyperscalers poised to outspend their free cash flow generation in 2026.

Key Takeaways

• Markets: Global equity markets, as measured by the MSCI World Index, fell in US dollar terms during the first quarter as fears about the impact spiking energy prices would have on the global economy