Issue link: https://info.seic.com/i/1543183
Tailwinds & headwinds. 12 months to Q4 2025 Positioning Key asset classes / Regions Key managers + (Strategic) Strong performance from rewarded value and momentum exposure · Select Value, Select Momentum + (Strategic) Exposure to commodities. · Threadneedle Enhanced Commodity Fund Active management + (Active) Stock selection in global small caps was a positive contributor as market breadth improved during the year. · Small Cap Select · SEI + (Active) Outperformance driven by rewarded value and momentum factor exposures alongside beneficial stock selection in China, Korea and Taiwan. Renewed enthusiasm in the AI trend supported returns particularly in Taiwan. · Emerging Markets Equity · SEI + (Active) Value exposure added positively to returns, supported by rewarded Value factor signals and strong stock selection in cyclical names. · Select Value · SEI, Tocqueville - (Active) Quality factors lagged as investors rotated toward higher-beta and more speculative areas of the market, favouring sentiment- driven stocks over fundamentally robust companies. · Select Quality Positioning. Theme Views Macro/Cross-asset · Our inflation bias remains above market consensus although tariff legality and election posturing may widen the range of potential outcomes. · No recession in sight. The global economy remains resilient and will benefit from additional stimulus in 2026. · We remain positive on risk assets in 2026. Equity · Earnings have been strong and broadening by sector and geography. · Underweight mega-cap tech in the U.S. on concentration concerns. Active management and positive exposures to global value, quality, and momentum factors remain our preferred approach. · EM equities are particularly interesting this year given the reflation dynamic of stimulus on top of positive economic growth. These are the views and opinions of SEI which are subject to change. They should not be construed as investment advice. 5