Fourth Quarter 2024 Client Investor Letter

Global markets delivered mixed results in the final quarter, but 2024 overall was a strong year, particularly in the U.S., where the S&P 500 achieved its best two-year performance since the 1990s, driven by robust economic growth and declining inflation. Although uncertainties persist, particularly around the implementation of economic policies, we remain confident in the potential for long-term growth in our client portfolios.

In our letter, we discuss:

• The sustained rise in U.S. productivity, driven by advancements like artificial intelligence, positions the economy for continued growth.
• What stands out in the market environment is how little stands out, which supports staying the course and maintaining current positioning.
• As the new administration’s economic priorities become clearer, we have evaluated the pros and cons and categorized their potential impacts into three key areas.
• The impact of interest rate changes and yield curve shifts on our bond portfolio strategy.

Please contact us if you want a copy of the entire letter.