Economic growth remained average and steady in the United States over the third quarter, supported by spending by households and for infrastructure building. It reaccelerated in Canada after a poor first half of 2026. The labour market stayed balanced.
The war in Iran and the fight over the Strait of Hormuz lingered on, pushing up energy prices, with inflation following suit. This situation, combined with concerns over American budgetary deficits and trade uncertainties, has led to large increases in interest rates of all maturities.
Central bankers took notice and some, notably those of the United States, Europe, and Japan, reversed their accommodating stance and lifted their benchmark rates. The Bank of Canada stayed put.
European economies suffer from the higher energy prices and inflation, and governments are using fiscal stimulus to offset the effects. In China, the technology sector is booming, partially offsetting poor consumer and infrastructure spending
The MSCI ACWI Index had a 1.7% return this quarter.
Rising interest rates and oil prices favoured the Energy (15%) sector which advanced alongside the USA – Iran tensions. Rising interest rates also favored Information Technology (4%) which witnessed a sharp internal rotation. Asset-light software companies came back into favour while long-duration cash flow companies and those requiring heavy capital investment, often linked to the AI hardware infrastructure build-out theme lost momentum.
Utilities (-9%) and Real Estate (-5%), both particularly rate-sensitive, were the weakest performers. Industrials (-6%) also struggled, as higher rates and the Federal Reserve’s return to a tightening cycle weighed on cyclical, capital-intensive industries.
The Triasima All Country World Equity Fund had a -5.4% return this quarter.
Security selection was responsible for almost the entirety of the underperformance, mainly derived from the Information Technology sector where software stocks were underweighted.
The following table presents the top and bottom contributors to relative return:
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Turnover focused on taking profits in stocks that had performed well but whose ratings had deteriorated, mainly in Industrials and Information Technology. The latter’s weight changed little, but semiconductor exposure was reduced in favour of software and the Magnificent 7. Growth companies in attractive niches were added to in the Health Care sector.
The MSCI ACWI set new highs during the quarter, but its uptrend weakened overall. Value style factors outperformed while Beta and Volatility factors underperformed.
On the quantitative side, the Fund has superior Expectations metrics and higher Revenues and Profits growth than the benchmark. Volatility and Risk metrics are worse, and Valuation parameters indicate the holdings are more expensive. This structure for the Fund was opposite the way style factors performed.
The Fundamental outlook has deteriorated due to the rise in interest rates and firmness in inflation and oil prices. Consumers and capital-intensive industries are pressured while AI capital spending still drives much of the growth.
The posted rate of return is a historical total rate of return compounded annually, except for periods of less than one year, which are not annualized. The rate of return shown takes into account fluctuations in unitholder value and the reinvestment of distributions. The posted rate of return does not take into account investment management fees and income taxes payable by the unitholder, which would have the effect of reducing the return. The Funds are not guaranteed, their value fluctuates, and past performance is not indicative of future results.
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