Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 7.51% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 3000 Growth Index, which returned 5.88% and underperformed the S&P 500 Index, a broad measure of market performance, which returned 10.21%.

The Fund outperformed the Russell 3000 Growth Index in the year-to-date period driven by stock-specific dynamics. Information Technology ("IT") including Advanced Micro Devices, Inc., PDF Solutions, Inc., CrowdStrike Holdings, Inc., and our underweight to Microsoft Corporation aided relative performance. Additionally, Twist Bioscience Corporation (Health Care) was additive to performance. Our typical bias toward small- and mid-cap stocks provided a tailwind, as smaller companies outperformed their large-cap counterparts. Our top detractors included Intuit Inc. (IT), ServiceNow, Inc. (IT), The Carlyle Group Inc. (Financials), Mastercard Inc. (Financials) and Vital Farms, Inc. (Consumer Staples). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit ("CPU")chipsets,phics processing unit ("GPU")chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong Data Center growth, driven by robust demand for both server CPUs and artificial intelligence (“AI”) accelerators. The company’s total addressable market continues to expand as the rise of agentic AI workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry.

provides advanced data software and engineering services to optimize performance and yield across the semiconductor lifecycle. Driven by robust demand for its Exensio platform, the company recently delivered better-than-expected earnings results. As AI adoption accelerates across the industry, PDFS is well-positioned to integrate disparate data sources, enabling customers to build proprietary AI capabilities or leverage the company's turnkey solutions.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We sold our position during the period. 

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 7.31% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 3000 Growth Index, which returned 5.88% and underperformed the S&P 500 Index, a broad measure of market performance, which returned 10.21%.

The Fund outperformed the Russell 3000 Growth Index in the year-to-date period driven by stock-specific dynamics. Information Technology ("IT") including Advanced Micro Devices, Inc., PDF Solutions, Inc., CrowdStrike Holdings, Inc., and our underweight to Microsoft Corporation aided relative performance. Additionally, Twist Bioscience Corporation (Health Care) was additive to performance. Our typical bias toward small- and mid-cap stocks provided a tailwind, as smaller companies outperformed their large-cap counterparts. Our top detractors included Intuit Inc. (IT), ServiceNow, Inc. (IT), The Carlyle Group Inc. (Financials), Mastercard Inc. (Financials) and Vital Farms, Inc. (Consumer Staples). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit ("CPU")chipsets, graphics processing unit ("GPU")chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong Data Center growth, driven by robust demand for both server CPUs and artificial intelligence (“AI”) accelerators. The company’s total addressable market continues to expand as the rise of agentic AI workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry.

provides advanced data software and engineering services to optimize performance and yield across the semiconductor lifecycle. Driven by robust demand for its Exensio platform, the company recently delivered better-than-expected earnings results. As AI adoption accelerates across the industry, PDFS is well-positioned to integrate disparate data sources, enabling customers to build proprietary AI capabilities or leverage the company's turnkey solutions.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We sold our position during the period. 

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 7.44% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 3000 Growth Index, which returned 5.88% and underperformed the S&P 500 Index, a broad measure of market performance, which returned 10.21%.

The Fund outperformed the Russell 3000 Growth Index in the year-to-date period driven by stock-specific dynamics. Information Technology ("IT") including Advanced Micro Devices, Inc., PDF Solutions, Inc., CrowdStrike Holdings, Inc., and our underweight to Microsoft Corporation aided relative performance. Additionally, Twist Bioscience Corporation (Health Care) was additive to performance. Our typical bias toward small- and mid-cap stocks provided a tailwind, as smaller companies outperformed their large-cap counterparts. Our top detractors included Intuit Inc. (IT), ServiceNow, Inc. (IT), The Carlyle Group Inc. (Financials), Mastercard Inc. (Financials) and Vital Farms, Inc. (Consumer Staples). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit ("CPU")chipsets, graphics processing unit ("GPU")chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong Data Center growth, driven by robust demand for both server CPUs and artificial intelligence (“AI”) accelerators. The company’s total addressable market continues to expand as the rise of agentic AI workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry.

provides advanced data software and engineering services to optimize performance and yield across the semiconductor lifecycle. Driven by robust demand for its Exensio platform, the company recently delivered better-than-expected earnings results. As AI adoption accelerates across the industry, PDFS is well-positioned to integrate disparate data sources, enabling customers to build proprietary AI capabilities or leverage the company's turnkey solutions.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We sold our position during the period. 

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 0.66% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 1000 Growth Index (the "Index"), which returned 5.33% and underperformed the Russell 1000 Index, a broad measure of market performance, which returned 10.33%.

The Fund underperformed the Russell 1000 Growth Index in the year-to-date period, driven by stock-specific dynamics. Stock selection in Information Technology (“IT”), particularly within Software, was a notable detractor, led by Intuit Inc., ServiceNow, Inc. and Microsoft Corporation. Industrials was another area of relative weakness. Other top detractors included The Carlyle Group Inc. (Financials) and IDEXX Laboratories, Inc. (Health Care). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance. The top contributors to performance included Advanced Micro Devices, Inc. (IT), Seagate Technology Holdings plc (IT), CrowdStrike Holdings, Inc. (IT), UnitedHealth Group Incorporated (Health Care), and Monster Beverage Corporation (Consumer Staples). Not owning Palantir Technologies Inc. (IT) and Tesla, Inc. (Consumer Discretionary) aided relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit (“CPU”) chipsets, graphics processing unit (“GPU”) chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong data center growth, driven by robust demand for both server CPUs and AI accelerators. The company’s total addressable market continues to expand as the rise of agentic artificial intelligence (“AI”) workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry. 

is a leading manufacturer of hard disk drives, holding a dominant market share in a three-player global oligopoly. During the period, the company delivered accelerating revenue growth and record margins, driven by sustained data center demand and the continued ramp of its next-generation, high-capacity HAMR-based Mozaic drives. This growth is further supported by durable secular tailwinds, including longer data retention requirements and stricter data sovereignty rules. Backed by improving visibility into multi-year cloud contracts extending into 2027 and meaningful progress on debt reduction, we added to our position as the company remains highly well-positioned for durable, long-term growth.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

(“ServiceNow”) is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We believe ServiceNow’s long-term growth prospects remain well supported by its strong industry position, deep customer relationships, and ongoing expansion of its product offerings. However, we continue to closely monitor competitive threats from AI. We reduced our position during the period.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 0.54% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 1000 Growth Index (the "Index"), which returned 5.33% and underperformed the Russell 1000 Index, a broad measure of market performance, which returned 10.33%.

The Fund underperformed the Russell 1000 Growth Index in the year-to-date period, driven by stock-specific dynamics. Stock selection in Information Technology (“IT”), particularly within Software, was a notable detractor, led by Intuit Inc., ServiceNow, Inc. and Microsoft Corporation. Industrials was another area of relative weakness. Other top detractors included The Carlyle Group Inc. (Financials) and IDEXX Laboratories, Inc. (Health Care). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance. The top contributors to performance included Advanced Micro Devices, Inc. (IT), Seagate Technology Holdings plc (IT), CrowdStrike Holdings, Inc. (IT), UnitedHealth Group Incorporated (Health Care), and Monster Beverage Corporation (Consumer Staples). Not owning Palantir Technologies Inc. (IT) and Tesla, Inc. (Consumer Discretionary) aided relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit (“CPU”) chipsets, graphics processing unit (“GPU”) chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong data center growth, driven by robust demand for both server CPUs and AI accelerators. The company’s total addressable market continues to expand as the rise of agentic artificial intelligence (“AI”) workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry. 

is a leading manufacturer of hard disk drives, holding a dominant market share in a three-player global oligopoly. During the period, the company delivered accelerating revenue growth and record margins, driven by sustained data center demand and the continued ramp of its next-generation, high-capacity HAMR-based Mozaic drives. This growth is further supported by durable secular tailwinds, including longer data retention requirements and stricter data sovereignty rules. Backed by improving visibility into multi-year cloud contracts extending into 2027 and meaningful progress on debt reduction, we added to our position as the company remains highly well-positioned for durable, long-term growth.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

(“ServiceNow”) is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We believe ServiceNow’s long-term growth prospects remain well supported by its strong industry position, deep customer relationships, and ongoing expansion of its product offerings. However, we continue to closely monitor competitive threats from AI. We reduced our position during the period.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 0.70% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 1000 Growth Index (the "Index"), which returned 5.33% and underperformed the Russell 1000 Index, a broad measure of market performance, which returned 10.33%.

The Fund underperformed the Russell 1000 Growth Index in the year-to-date period, driven by stock-specific dynamics. Stock selection in Information Technology (“IT”), particularly within Software, was a notable detractor, led by Intuit Inc., ServiceNow, Inc. and Microsoft Corporation. Industrials was another area of relative weakness. Other top detractors included The Carlyle Group Inc. (Financials) and IDEXX Laboratories, Inc. (Health Care). Not owning Lam Research Corporation and KLA Corporation, both in IT, also impeded relative performance. The top contributors to performance included Advanced Micro Devices, Inc. (IT), Seagate Technology Holdings plc (IT), CrowdStrike Holdings, Inc. (IT), UnitedHealth Group Incorporated (Health Care), and Monster Beverage Corporation (Consumer Staples). Not owning Palantir Technologies Inc. (IT) and Tesla, Inc. (Consumer Discretionary) aided relative performance.

TOP PERFORMANCE CONTRIBUTORS

designs and markets central processing unit (“CPU”) chipsets, graphics processing unit (“GPU”) chipsets and custom chip designs for large original equipment manufacturers. Shares rose after the company reported strong data center growth, driven by robust demand for both server CPUs and AI accelerators. The company’s total addressable market continues to expand as the rise of agentic artificial intelligence (“AI”) workloads fuels greater CPU and GPU consumption. With expanding hyperscaler partnerships and a second-half ramp of next-generation AI accelerators reinforcing the growth narrative, we continue to believe the company is well-positioned for durable growth in an attractive industry. 

is a leading manufacturer of hard disk drives, holding a dominant market share in a three-player global oligopoly. During the period, the company delivered accelerating revenue growth and record margins, driven by sustained data center demand and the continued ramp of its next-generation, high-capacity HAMR-based Mozaic drives. This growth is further supported by durable secular tailwinds, including longer data retention requirements and stricter data sovereignty rules. Backed by improving visibility into multi-year cloud contracts extending into 2027 and meaningful progress on debt reduction, we added to our position as the company remains highly well-positioned for durable, long-term growth.

TOP PERFORMANCE DETRACTORS

is a leading provider of financial and tax preparation software, powering dominant consumer and small business platforms like QuickBooks and TurboTax. Shares underperformed following an underwhelming earnings report, compounded by broader pressure on software stocks over AI-driven terminal value concerns. The primary headwind was unit and pricing softness within the DIY tax segment (TurboTax) among highly price-sensitive filers. We reduced our position during the period. 

(“ServiceNow”) is a leading provider of cloud-based workflow automation and business management solutions, offering a highly scalable platform for automating enterprise-wide operations. Shares fell as persistent investor fears over AI agents eroding the traditional seat-based software model overshadowed strong low-20% subscription revenue growth and the rapid scaling of its Now Assist AI suite. We believe ServiceNow’s long-term growth prospects remain well supported by its strong industry position, deep customer relationships, and ongoing expansion of its product offerings. However, we continue to closely monitor competitive threats from AI. We reduced our position during the period.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.01% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell Midcap Value Index, which returned 17.58% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund’s underperformance versus its benchmark was driven by poor stock selection in the Financials and Heath Care sectors. Conversely, the Fund was positively impacted by an underweight position and relative outperformance by the Fund’s holdings in the Consumer Discretionary sector. The Fund was also positively impacted by the relative outperformance of the Fund’s holdings in the Real Estate sector as well as an underweight position in the Communication Services sector. 

TOP PERFORMANCE CONTRIBUTORS

(“STMicroelectronics”) is a global semiconductor company, which engages in the business of designing, developing, manufacturing, and marketing products used in a wide variety of applications for automotive, industrial, personal electronics and communications equipment. STMicroelectronics has benefited from continued data center growth and high demand for silicon photonics and optical computing. 

(“Flex”) operates as an electronics manufacturing services company, which designs and develops original design manufacturing products for various end markets. Flex has benefited from continuous data centerbuildout, which has the opportunity for further margin expansion.

(“Hewlett Packard”) is a global-edge-to-cloud company, which engages in the provision of information technology (“IT”), technology and enterprise products, solutions and services. Hewlett Packard has benefited from strong demand and constrained supply as their products address the enterprise network, which artificial intelligence (“AI”) relies on.  

TOP PERFORMANCE DETRACTORS

(“Cognizant”) engages in providing IT, consulting, and business process outsourcing services. Cognizant has struggled to combat the AI displacement narrative relating to less billable hours as well as the cost-advantage of outsourcing projects.

(“KKR”) operates as an investment firm, offering alternative asset management as well as capital markets and insurance solutions. Despite strong fundamentals and earnings, KKR has suffered from broad weakness in capital markets due to concerns surrounding the quality of private credit underwriting. 

(“Carlyle”) is a global investment firm, which operates primarily in private equity and credit. Carlyle, in comparison to other alternative asset management peers, has suffered from slower management fee growth as well as from lower returns in their flagship private equity vehicles. Additionally, private credit concerns have also created an overhang on Carlyle’s valuation.  

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.01% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell Midcap Value Index, which returned 17.58% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund’s underperformance versus its benchmark was driven by poor stock selection in the Financials and Heath Care sectors. Conversely, the Fund was positively impacted by an underweight position and relative outperformance by the Fund’s holdings in the Consumer Discretionary sector. The Fund was also positively impacted by the relative outperformance of the Fund’s holdings in the Real Estate sector as well as an underweight position in the Communication Services sector. 

TOP PERFORMANCE CONTRIBUTORS

(“STMicroelectronics”) is a global semiconductor company, which engages in the business of designing, developing, manufacturing, and marketing products used in a wide variety of applications for automotive, industrial, personal electronics and communications equipment. STMicroelectronics has benefited from continued data center growth and high demand for silicon photonics and optical computing. 

(“Flex”) operates as an electronics manufacturing services company, which designs and develops original design manufacturing products for various end markets. Flex has benefited from continuous data centerbuildout, which has the opportunity for further margin expansion.

Hewlett Packard Enterprise Co.

TOP PERFORMANCE DETRACTORS

(“Cognizant”) engages in providing IT, consulting, and business process outsourcing services. Cognizant has struggled to combat the AI displacement narrative relating to less billable hours as well as the cost-advantage of outsourcing projects.

(“KKR”) operates as an investment firm, offering alternative asset management as well as capital markets and insurance solutions. Despite strong fundamentals and earnings, KKR has suffered from broad weakness in capital markets due to concerns surrounding the quality of private credit underwriting. 

(“Carlyle”) is a global investment firm, which operates primarily in private equity and credit. Carlyle, in comparison to other alternative asset management peers, has suffered from slower management fee growth as well as from lower returns in their flagship private equity vehicles. Additionally, private credit concerns have also created an overhang on Carlyle’s valuation.  

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.58% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Index, which returned 22.71% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund underperformed the Russell 2500 Index in the year-to-date period. Performance was driven by style headwinds and stock specific dynamics. From a style perspective, stocks with higher beta and higher fundamental volatility significantly outperformed, creating a headwind to relative performance. From a stock specific perspective, stock selection within Information Technology (“IT”), including our position in Agilysys, Inc. and not owning Sandisk Corporation, detracted from relative performance. Selection in Industrials, including our position in TransUnion, also detracted. Additional detractors for the period included Doximity, Inc. (Health Care), The Carlyle Group Inc. (Financials) and Revolve Group, Inc. (Consumer Discretionary). The top contributors for the period were Twist Bioscience Corporation (Health Care), Ciena Corporation (IT), Vishay Intertechnology, Inc. (IT), Garrett Motion Inc. (Industrials) and Onto Innovation Inc. (IT).

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs and delivers high-performance networking equipment, software and services. The company reported strong demand for AI-related optical networking infrastructure, which supported revenue growth.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

, an information services and analytics provider of credit, marketing, identity, and fraud prevention solutions, lagged due to concern that AI could disrupt traditional credit-data services.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.56% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Index, which returned 22.71% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund underperformed the Russell 2500 Index in the year-to-date period. Performance was driven by style headwinds and stock specific dynamics. From a style perspective, stocks with higher beta and higher fundamental volatility significantly outperformed, creating a headwind to relative performance. From a stock specific perspective, stock selection within Information Technology (“IT”), including our position in Agilysys, Inc. and not owning Sandisk Corporation, detracted from relative performance. Selection in Industrials, including our position in TransUnion, also detracted. Additional detractors for the period included Doximity, Inc. (Health Care), The Carlyle Group Inc. (Financials) and Revolve Group, Inc. (Consumer Discretionary). The top contributors for the period were Twist Bioscience Corporation (Health Care), Ciena Corporation (IT), Vishay Intertechnology, Inc. (IT), Garrett Motion Inc. (Industrials) and Onto Innovation Inc. (IT).

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs and delivers high-performance networking equipment, software and services. The company reported strong demand for AI-related optical networking infrastructure, which supported revenue growth.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

, an information services and analytics provider of credit, marketing, identity, and fraud prevention solutions, lagged due to concern that AI could disrupt traditional credit-data services.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.46% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Growth Index, which returned 19.66% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

.

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs and delivers high-performance networking equipment, software and services. The company reported strong demand for AI-related optical networking infrastructure, which supported revenue growth.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

, an alternative asset manager with a mix of assets across various private market segments, lagged on a combination of market concerns associated with the risk of redemption requests for alternative asset managers broadly and a mixed quarterly earnings report.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.35% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Growth Index, which returned 19.66% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

.

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs and delivers high-performance networking equipment, software and services. The company reported strong demand for AI-related optical networking infrastructure, which supported revenue growth.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

, an alternative asset manager with a mix of assets across various private market segments, lagged on a combination of market concerns associated with the risk of redemption requests for alternative asset managers broadly and a mixed quarterly earnings report.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 15.49% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Growth Index, which returned 19.66% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

.

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs and delivers high-performance networking equipment, software and services. The company reported strong demand for AI-related optical networking infrastructure, which supported revenue growth.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

, an alternative asset manager with a mix of assets across various private market segments, lagged on a combination of market concerns associated with the risk of redemption requests for alternative asset managers broadly and a mixed quarterly earnings report.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 23.41% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Value Index, which returned 24.16% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund’s underperformance versus its benchmark was largely driven by negative sector allocation concentrated in just 2 of the 11 Global Industry Classification Standard economic sectors during the period. Specifically, the Fund suffered from its underweight position in the Information Technology (“IT”) sector. Conversely, the Fund was positively impacted by an underweight position and relative outperformance by the Portfolio’s holdings in the Consumer Discretionary, Real Estate, and Materials sectors.

TOP PERFORMANCE CONTRIBUTORS

(“Vishay”) engages in the manufacture and distribution of discrete semiconductors and passive electronic components. Vishay has benefited from the early innings of the artificial intelligence (“AI”) demand cycle, which has allowed them to capture significant pricing, margin, and market share. 

(“Flex”) operates as an electronics manufacturing services company, which designs and develops original design manufacturing products for various end markets. Flex has benefited from continuous data centerbuildout, which has the opportunity for further margin expansion.

(“Tower Semiconductor”) is an independent foundry providing semiconductor integrated circuits manufacturing and related design services. Tower Semiconductor hasbenefitted from the growing success in their Silicon Photonics business, which has been used in data centers to fuel AI.

TOP PERFORMANCE DETRACTORS

(“Carlyle”) is a global investment firm, which operates primarily in private equity and credit. Carlyle, in comparison to other alternative asset management peers, has suffered from slower management fee growth as well as from lower returns in their flagship private equity vehicles. Additionally, private credit concerns have also created an overhang on Carlyle’s valuation.  

(“Maximus”) engages in the operation of government health and human services programs, and the provision of technology solutions to government. Despite more insulation due to government exposure, Maximus, like others, has suffered from the AI displacement narrative. 

(“TriNet”) engages in the provision of comprehensive human resources solutions for small and medium-sized businesses. TriNet has suffered from the slowdown in small-medium sized business hiring. 

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 23.43% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2500 Value Index, which returned 24.16% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund’s underperformance versus its benchmark was largely driven by negative sector allocation concentrated in just 2 of the 11 Global Industry Classification Standard economic sectors during the period. Specifically, the Fund suffered from its underweight position in the Information Technology (“IT”) sector. Conversely, the Fund was positively impacted by an underweight position and relative outperformance by the Portfolio’s holdings in the Consumer Discretionary, Real Estate, and Materials sectors.

TOP PERFORMANCE CONTRIBUTORS

(“Vishay”) engages in the manufacture and distribution of discrete semiconductors and passive electronic components. Vishay has benefited from the early innings of the artificial intelligence (“AI”) demand cycle, which has allowed them to capture significant pricing, margin, and market share. 

(“Flex”) operates as an electronics manufacturing services company, which designs and develops original design manufacturing products for various end markets. Flex has benefited from continuous data centerbuildout, which has the opportunity for further margin expansion.

(“Tower Semiconductor”) is an independent foundry providing semiconductor integrated circuits manufacturing and related design services. Tower Semiconductor hasbenefitted from the growing success in their Silicon Photonics business, which has been used in data centers to fuel AI.

TOP PERFORMANCE DETRACTORS

(“Carlyle”) is a global investment firm, which operates primarily in private equity and credit. Carlyle, in comparison to other alternative asset management peers, has suffered from slower management fee growth as well as from lower returns in their flagship private equity vehicles. Additionally, private credit concerns have also created an overhang on Carlyle’s valuation.  

(“Maximus”) engages in the operation of government health and human services programs, and the provision of technology solutions to government. Despite more insulation due to government exposure, Maximus, like others, has suffered from the AI displacement narrative. 

(“TriNet”) engages in the provision of comprehensive human resources solutions for small and medium-sized businesses. TriNet has suffered from the slowdown in small-medium sized business hiring. 

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 22.27% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 2000 Growth Index, which returned 22.18% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund kept pace with the Russell 2000 Growth Index in the year-to-date period as strong stock selection was largely offset by style headwinds. After outperforming in the first quarter due to strong stock selection, stocks with higher momentum, higher beta and higher fundamental volatility significantly outperformed during the second quarter, creating a headwind to relative performance. From a stock-specific perspective, selection in Industrials and Information Technology (“IT”) contributed positively to relative returns. Our top individual contributors included Twist Bioscience Corporation (Health Care), Penguin Solutions, Inc. (IT), Aehr Test Systems, Inc. (IT), Cognex Corporation (IT) and Lumentum Holdings Inc. (IT). Our top individual detractors included our positions in Doximity, Inc. (Health Care), Planet Fitness, Inc. (Consumer Discretionary), Inspire Medical Systems, Inc. (Health Care), AppFolio, Inc. (IT) and Q2 Holdings, Inc. (IT), as well as not owning Credo Technology Group Holding Ltd. (IT).

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs, builds and provides high-performance computing hardware and managed services solutions to enterprises. The company reported strength in Integrated Memory and benefited from favorable pricing dynamics across the memory market. 

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

engages in the operation and franchising of its namesake fitness centers throughout the U.S. Concerns regarding weakening trends in membership growth weighed on shares. We liquidated our position as the risk/reward was no longer attractive.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 22.16% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the Russell 2000 Growth Index, which returned 22.18% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund kept pace with the Russell 2000 Growth Index in the year-to-date period as strong stock selection was largely offset by style headwinds. After outperforming in the first quarter due to strong stock selection, stocks with higher momentum, higher beta and higher fundamental volatility significantly outperformed during the second quarter, creating a headwind to relative performance. From a stock-specific perspective, selection in Industrials and Information Technology (“IT”) contributed positively to relative returns. Our top individual contributors included Twist Bioscience Corporation (Health Care), Penguin Solutions, Inc. (IT), Aehr Test Systems, Inc. (IT), Cognex Corporation (IT) and Lumentum Holdings Inc. (IT). Our top individual detractors included our positions in Doximity, Inc. (Health Care), Planet Fitness, Inc. (Consumer Discretionary), Inspire Medical Systems, Inc. (Health Care), AppFolio, Inc. (IT) and Q2 Holdings, Inc. (IT), as well as not owning Credo Technology Group Holding Ltd. (IT).

TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

designs, builds and provides high-performance computing hardware and managed services solutions to enterprises. The company reported strength in Integrated Memory and benefited from favorable pricing dynamics across the memory market. 

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

engages in the operation and franchising of its namesake fitness centers throughout the U.S. Concerns regarding weakening trends in membership growth weighed on shares. We liquidated our position as the risk/reward was no longer attractive.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

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TOP PERFORMANCE CONTRIBUTORS

develops and manufactures synthetic DNA. The company reported broad-based commercial momentum and continued execution across business segments.

Penguin Solutions, Inc.

TOP PERFORMANCE DETRACTORS

is the leading digital network for medical professionals in the United States. Shares were pressured by weaker-than-expected forward guidance. We liquidated our position as the risk/reward was no longer attractive.

engages in the operation and franchising of its namesake fitness centers throughout the U.S. Concerns regarding weakening trends in membership growth weighed on shares. We liquidated our position as the risk/reward was no longer attractive.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 23.32% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 2000 Value Index, which returned 22.99% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

The Fund’s outperformance versus its benchmark was driven by an overweight position and relative outperformance by the Fund’s holdings in the Information Technology (“IT”) sector. The Fund was also positively impacted by a relative outperformance by the Fund’s holdings in the Consumer Staples and Consumer Discretionary sectors. Despite the outperformance, the Fund was negatively impacted by a relative underperformance by the Fund’s holdings in the Industrials sector. The Fund was also negatively impacted by an underweight position and relative underperformance by the Fund’s holdings in the Energy sector as well as by an underperformance by the Fund’s holdings in the Health Care sector.

TOP PERFORMANCE CONTRIBUTORS

(“Vishay”) engages in the manufacture and distribution of discrete semiconductors and passive electronic components. Vishay has benefited from the early innings of the artificial intelligence (“AI”) demand cycle, which has allowed them to capture significant pricing, margin, and market share. 

(“Kulicke & Soffa”) engages in the design, manufacture, and sale of semiconductor and electronics assembly solutions. Kulicke & Soffa has benefited from the start of a cyclical recovery in traditional wire and ball bonding, which has been spurred by increased manufacturing capital expenditures related to building out AI.  

(“Diodes”) engages in the manufacturing and supply of application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. Diodes has benefitted from favorable supply dynamics in both their auto OEM and AI server end markets. 

TOP PERFORMANCE DETRACTORS

(“Huron”) engages in the provision of technology, data, and analytics solutions, operating in healthcare, education and commercial industries. Huron has suffered from the AI displacement narrative which threatens billable opportunities and has weighed on the industry’s valuations. 

(“Maximus”) engages in the operation of government health and human services programs, and the provision of technology solutions to government. Despite more insulation due to government exposure, Maximus, like others, has suffered from the AI displacement narrative. 

("TriNet")engages in the provision of comprehensive human resources solutions for small and medium-sized businesses. TriNet has suffered from the slowdown in small-medium sized business hiring.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 23.18% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 2000 Value Index, which returned 22.99% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

TOP PERFORMANCE CONTRIBUTORS

(“Vishay”) engages in the manufacture and distribution of discrete semiconductors and passive electronic components. Vishay has benefited from the early innings of the artificial intelligence (“AI”) demand cycle, which has allowed them to capture significant pricing, margin, and market share. 

(“Kulicke & Soffa”) engages in the design, manufacture, and sale of semiconductor and electronics assembly solutions. Kulicke & Soffa has benefited from the start of a cyclical recovery in traditional wire and ball bonding, which has been spurred by increased manufacturing capital expenditures related to building out AI.  

(“Diodes”) engages in the manufacturing and supply of application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. Diodes has benefitted from favorable supply dynamics in both their auto OEM and AI server end markets. 

TOP PERFORMANCE DETRACTORS

(“Huron”) engages in the provision of technology, data, and analytics solutions, operating in healthcare, education and commercial industries. Huron has suffered from the AI displacement narrative which threatens billable opportunities and has weighed on the industry’s valuations. 

(“Maximus”) engages in the operation of government health and human services programs, and the provision of technology solutions to government. Despite more insulation due to government exposure, Maximus, like others, has suffered from the AI displacement narrative. 

("TriNet")engages in the provision of comprehensive human resources solutions for small and medium-sized businesses. TriNet has suffered from the slowdown in small-medium sized business hiring.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 23.36% (net of fees) for the 6 months ended June 30, 2026. The Fund outperformed its benchmark, the Russell 2000 Value Index, which returned 22.99% and outperformed the Russell 3000 Index, a broad measure of market performance, which returned 10.88%.

TOP PERFORMANCE CONTRIBUTORS

(“Vishay”) engages in the manufacture and distribution of discrete semiconductors and passive electronic components. Vishay has benefited from the early innings of the artificial intelligence (“AI”) demand cycle, which has allowed them to capture significant pricing, margin, and market share. 

(“Kulicke & Soffa”) engages in the design, manufacture, and sale of semiconductor and electronics assembly solutions. Kulicke & Soffa has benefited from the start of a cyclical recovery in traditional wire and ball bonding, which has been spurred by increased manufacturing capital expenditures related to building out AI.  

(“Diodes”) engages in the manufacturing and supply of application-specific standard products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. Diodes has benefitted from favorable supply dynamics in both their auto OEM and AI server end markets. 

TOP PERFORMANCE DETRACTORS

(“Huron”) engages in the provision of technology, data, and analytics solutions, operating in healthcare, education and commercial industries. Huron has suffered from the AI displacement narrative which threatens billable opportunities and has weighed on the industry’s valuations. 

(“Maximus”) engages in the operation of government health and human services programs, and the provision of technology solutions to government. Despite more insulation due to government exposure, Maximus, like others, has suffered from the AI displacement narrative. 

("TriNet")engages in the provision of comprehensive human resources solutions for small and medium-sized businesses. TriNet has suffered from the slowdown in small-medium sized business hiring.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 9.82% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the MSCI All Country World (net), which returned 11.25%. The Fund's benchmark is also a broad measure of market performance.

TOP PERFORMANCE CONTRIBUTORS

(“Ibiden”), purchased in the first quarter, is a Japanese manufacturer of ABF substrates for the semiconductor industry and automotive ceramics, primarily focused on semiconductor packaging used in high-performance computing, AI accelerators, and server CPUs, where it is a key global supplier, with ABF substrates accounting for 50%-60% of revenues, mostly driven by Nvidia Corporation. ABF substrates are crucial insulating layer used in semiconductor packaging and interconnection processes. The stock appreciated meaningfully following our purchase as full-year results delivered net profit growth of nearly 90% and the market began to price in the thesis underpinning the position: substrates are becoming larger and more complex as layer counts increase from generation to generation. Ibiden, as the best-in-class producer, is positioned to command 80% or higher share of Nvidia's Rubin platform, where substrate growth could be 90%-100% relative to Blackwell before considering GPU unit growth.

SK Hynix

Applied Materials, Inc.

(“Total”) is one of the five core integrated oil companies in the world, meaning that it owns assets producing hydrocarbons, refines hydrocarbons for use as both transportation fuels and petrochemicals, and operates fuel stations. The stock was up meaningfully on the sharp rise in oil prices driven by the conflict in Iran. Total sits in an unusual position relative to peers, as 15% of its global hydrocarbon production is in the Middle East, including UAE offshore, Iraq, and Qatar LNG assets, but crucially noted that an $8 per barrel increase in Brent crude was sufficient to offset the entire expected 2026 cash flow contribution from those stranded assets. With Brent up over $50 per barrel in the first quarter, earnings growth expectations rose significantly, and while the shares gave back a portion of those gains in the second quarter as prospects of a ceasefire emerged, crude prices remain well above pre-conflict levels and continue to support a materially improved earnings trajectory.

TOP PERFORMANCE DETRACTORS

(“Tencent”) is China's dominant technology conglomerate, operating WeChat, the country's indispensable super app with roughly 1.3 billion users spanning messaging, payments, and short video, alongside the world's largest gaming business. The stock derated after a strong 2025 on concerns that Tencent's artificial intelligence (“AI”) efforts have proved less successful than its large platform rivals, and on the announcement that the company more than doubled its investments in AI, funded in part by scaled-back buybacks, with monetization expected to take time. The emergence of China's leading open-source AI models allowed Tencent to build out a suite of agentic products across consumer, developer, and enterprise segments in rapid succession, including integrations within WeChat. We have trimmed exposure on Chinese macro weakness but believe Tencent's large user base will allow it to best leverage China's open-source AI models.

IHI Corporation

is a Japanese industrial conglomerate. After reaching an all-time high in February, the stock declined with richly valued Japanese industrials broadly and derated further following full-year results in April. Guidance came in modestly below consensus, incorporating a step-up in strategic investment and a risk provision tied to production delays from the Middle East conflict, while questions about AI disruption to its digital and software businesses caused the stock's valuation multiple to decline. The results themselves supported our thesis, with record annual EBITDA and net income, and management raised its medium-term growth and margin targets for the energy segment on strong demand from data centers, which we believe the market is underappreciating.

is one of the largest digital banking platforms globally, with over 135 million customers across Brazil, Mexico, and Colombia, and aspirations of reaching a billion customers globally. The stock declined as rising credit loss provisions and macroeconomic deterioration in Brazil compressed net interest margins, and a surprise CFO transition drove a series of sell-side downgrades. The customer growth and engagement that underpin our thesis remain intact, with the company adding four million customers in the first quarter and announcing a $1 billion share buyback. We view the derating as reflecting cyclical credit dynamics rather than a change in the quality of the franchise.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 9.69% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the MSCI All Country World (net), which returned 11.25%. The Fund's benchmark is also a broad measure of market performance.

TOP PERFORMANCE CONTRIBUTORS

(“Ibiden”), purchased in the first quarter, is a Japanese manufacturer of ABF substrates for the semiconductor industry and automotive ceramics, primarily focused on semiconductor packaging used in high-performance computing, AI accelerators, and server CPUs, where it is a key global supplier, with ABF substrates accounting for 50%-60% of revenues, mostly driven by Nvidia Corporation. ABF substrates are crucial insulating layer used in semiconductor packaging and interconnection processes. The stock appreciated meaningfully following our purchase as full-year results delivered net profit growth of nearly 90% and the market began to price in the thesis underpinning the position: substrates are becoming larger and more complex as layer counts increase from generation to generation. Ibiden, as the best-in-class producer, is positioned to command 80% or higher share of Nvidia's Rubin platform, where substrate growth could be 90%-100% relative to Blackwell before considering GPU unit growth.

SK Hynix

Applied Materials, Inc.

(“Total”) is one of the five core integrated oil companies in the world, meaning that it owns assets producing hydrocarbons, refines hydrocarbons for use as both transportation fuels and petrochemicals, and operates fuel stations. The stock was up meaningfully on the sharp rise in oil prices driven by the conflict in Iran. Total sits in an unusual position relative to peers, as 15% of its global hydrocarbon production is in the Middle East, including UAE offshore, Iraq, and Qatar LNG assets, but crucially noted that an $8 per barrel increase in Brent crude was sufficient to offset the entire expected 2026 cash flow contribution from those stranded assets. With Brent up over $50 per barrel in the first quarter, earnings growth expectations rose significantly, and while the shares gave back a portion of those gains in the second quarter as prospects of a ceasefire emerged, crude prices remain well above pre-conflict levels and continue to support a materially improved earnings trajectory.

TOP PERFORMANCE DETRACTORS

(“Tencent”) is China's dominant technology conglomerate, operating WeChat, the country's indispensable super app with roughly 1.3 billion users spanning messaging, payments, and short video, alongside the world's largest gaming business. The stock derated after a strong 2025 on concerns that Tencent's artificial intelligence (“AI”) efforts have proved less successful than its large platform rivals, and on the announcement that the company more than doubled its investments in AI, funded in part by scaled-back buybacks, with monetization expected to take time. The emergence of China's leading open-source AI models allowed Tencent to build out a suite of agentic products across consumer, developer, and enterprise segments in rapid succession, including integrations within WeChat. We have trimmed exposure on Chinese macro weakness but believe Tencent's large user base will allow it to best leverage China's open-source AI models.

IHI Corporation

is a Japanese industrial conglomerate. After reaching an all-time high in February, the stock declined with richly valued Japanese industrials broadly and derated further following full-year results in April. Guidance came in modestly below consensus, incorporating a step-up in strategic investment and a risk provision tied to production delays from the Middle East conflict, while questions about AI disruption to its digital and software businesses caused the stock's valuation multiple to decline. The results themselves supported our thesis, with record annual EBITDA and net income, and management raised its medium-term growth and margin targets for the energy segment on strong demand from data centers, which we believe the market is underappreciating.

is one of the largest digital banking platforms globally, with over 135 million customers across Brazil, Mexico, and Colombia, and aspirations of reaching a billion customers globally. The stock declined as rising credit loss provisions and macroeconomic deterioration in Brazil compressed net interest margins, and a surprise CFO transition drove a series of sell-side downgrades. The customer growth and engagement that underpin our thesis remain intact, with the company adding four million customers in the first quarter and announcing a $1 billion share buyback. We view the derating as reflecting cyclical credit dynamics rather than a change in the quality of the franchise.

Management’s Discussion of Fund Performance

SUMMARY OF RESULTS

The Fund returned 9.82% (net of fees) for the 6 months ended June 30, 2026. The Fund underperformed its benchmark, the MSCI All Country World (net), which returned 11.25%. The Fund's benchmark is also a broad measure of market performance.

TOP PERFORMANCE CONTRIBUTORS

(“Ibiden”), purchased in the first quarter, is a Japanese manufacturer of ABF substrates for the semiconductor industry and automotive ceramics, primarily focused on semiconductor packaging used in high-performance computing, AI accelerators, and server CPUs, where it is a key global supplier, with ABF substrates accounting for 50%-60% of revenues, mostly driven by Nvidia Corporation. ABF substrates are crucial insulating layer used in semiconductor packaging and interconnection processes. The stock appreciated meaningfully following our purchase as full-year results delivered net profit growth of nearly 90% and the market began to price in the thesis underpinning the position: substrates are becoming larger and more complex as layer counts increase from generation to generation. Ibiden, as the best-in-class producer, is positioned to command 80% or higher share of Nvidia's Rubin platform, where substrate growth could be 90%-100% relative to Blackwell before considering GPU unit growth.

SK Hynix

Applied Materials, Inc.

(“Total”) is one of the five core integrated oil companies in the world, meaning that it owns assets producing hydrocarbons, refines hydrocarbons for use as both transportation fuels and petrochemicals, and operates fuel stations. The stock was up meaningfully on the sharp rise in oil prices driven by the conflict in Iran. Total sits in an unusual position relative to peers, as 15% of its global hydrocarbon production is in the Middle East, including UAE offshore, Iraq, and Qatar LNG assets, but crucially noted that an $8 per barrel increase in Brent crude was sufficient to offset the entire expected 2026 cash flow contribution from those stranded assets. With Brent up over $50 per barrel in the first quarter, earnings growth expectations rose significantly, and while the shares gave back a portion of those gains in the second quarter as prospects of a ceasefire emerged, crude prices remain well above pre-conflict levels and continue to support a materially improved earnings trajectory.

TOP PERFORMANCE DETRACTORS

(“Tencent”) is China's dominant technology conglomerate, operating WeChat, the country's indispensable super app with roughly 1.3 billion users spanning messaging, payments, and short video, alongside the world's largest gaming business. The stock derated after a strong 2025 on concerns that Tencent's artificial intelligence (“AI”) efforts have proved less successful than its large platform rivals, and on the announcement that the company more than doubled its investments in AI, funded in part by scaled-back buybacks, with monetization expected to take time. The emergence of China's leading open-source AI models allowed Tencent to build out a suite of agentic products across consumer, developer, and enterprise segments in rapid succession, including integrations within WeChat. We have trimmed exposure on Chinese macro weakness but believe Tencent's large user base will allow it to best leverage China's open-source AI models.

IHI Corporation

is a Japanese industrial conglomerate. After reaching an all-time high in February, the stock declined with richly valued Japanese industrials broadly and derated further following full-year results in April. Guidance came in modestly below consensus, incorporating a step-up in strategic investment and a risk provision tied to production delays from the Middle East conflict, while questions about AI disruption to its digital and software businesses caused the stock's valuation multiple to decline. The results themselves supported our thesis, with record annual EBITDA and net income, and management raised its medium-term growth and margin targets for the energy segment on strong demand from data centers, which we believe the market is underappreciating.

is one of the largest digital banking platforms globally, with over 135 million customers across Brazil, Mexico, and Colombia, and aspirations of reaching a billion customers globally. The stock declined as rising credit loss provisions and macroeconomic deterioration in Brazil compressed net interest margins, and a surprise CFO transition drove a series of sell-side downgrades. The customer growth and engagement that underpin our thesis remain intact, with the company adding four million customers in the first quarter and announcing a $1 billion share buyback. We view the derating as reflecting cyclical credit dynamics rather than a change in the quality of the franchise.