Builders Fund

March 31, 2024

Fund Overview

• The Builders Fund is a fund-of-funds that invests mainly in Steadyhand’s four stand-alone equity funds — Steadyhand Equity Fund, Steadyhand Global Equity Fund, Steadyhand Small-Cap Equity Fund, and Steadyhand Global Small-Cap Equity Fund. Its an all-stock portfolio designed for growth-oriented investors.
  
• The underlying fund mix is managed by Chief Investment Officer Salman Ahmed, with Chair and co-founder Tom Bradley as co-manager.
  

Portfolio Specifics

• The fund had a strong quarter (+8.2%). Its performance was ahead of the Canadian market but trailed the broad global index.
  
• Investments are allocated roughly 1/3 towards companies based in Canada and 2/3 towards foreign businesses. The bias to foreign companies reflects a broader opportunity set outside of Canada, particularly in important industries like healthcare, technology, and consumer products and services.
  
• The largest area of investment, industrial goods & services (30% of the portfolio), includes a diverse mix of companies such as railways CN Rail and Canadian Pacific Kansas City, MonotaRO (industrial supply products), Casella Waste Systems (waste management) and Savaria (home elevators and mobility products). Performance of the group was strong in the first quarter.
  
• Financial services companies make up 17% of the fund. Large holdings include Visa, TD Bank, and S&P Global. We also own a group of leading insurance companies, including RenaissanceRe, AIA Group, and Steadfast. CME Group (derivatives marketplace), FirstCash Holdings (pawn stores), FinecoBank (Italian online bank) and TMX Group (market exchanges) provide additional diversification.
  
• The technology sector is another important area of investment, comprising 16%. Our focus is on established industry leaders such as Microsoft, which is our largest holding. Other investments include Samsung Electronics (diversified technology), Qualcomm (chips for smartphones), Adobe (software) and Onto Innovation (defect inspection solutions for semiconductor manufacturers). Our holdings performed well, but didn’t keep pace with the mega-cap AI-related stocks that continued to drive the sector.
  
• The portfolio also has notable exposure to consumer stocks (15%), including Costco (big-box retailer), Loblaw Companies (grocer) Coca-Cola (soft drinks), Dollarama (discount retailer), Heineken (beer), and Nestle (snacks and coffee). These companies don’t perform as well in roaring markets but are more likely to hold up in difficult economic periods.
  

Positioning

• Refer to the underlying funds for details on their positioning.
  

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.