Fourth Quarter 2025 Client Investor Letter

Global equity markets continued to deliver strong results in 2025, with international markets leading for the first sustained period in many years. Encouragingly, recent market strength has been supported by improving fundamentals rather than speculation alone.

While investor sentiment has become more optimistic and valuations are elevated in certain areas, we believe the broader investment backdrop remains constructive. Earnings growth, improving productivity, and capital investment—particularly in artificial intelligence—continue to support long-term returns.

Our approach remains focused on managing risk, preserving capital, and positioning your investments to compound value across changing market environments. In the attached letter, we discuss:

• Why non-U.S. markets outperformed in 2025 and why relative valuations may continue to favor international equities in the year ahead.
• How earnings growth can support returns even in a higher-valuation environment, as illustrated by historical market data.
• The evolving role of AI, from infrastructure investment to productivity gains across a broader range of industries.
• Why short- to intermediate-term bonds remain attractive, offering a compelling combination of income, stability, and flexibility amid a steepening yield curve.

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