Issue link: https://info.seic.com/i/1543184
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 emerging markets equity · Emerging Market Equity + (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 Summary views 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. 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. Fixed income · We remain positioned for a continued steepening in U.S. and European yield curves. · Duration positioning remains broadly neutral. These are the views and opinions of SEI which are subject to change. They should not be construed as investment advice. 5