Global Quality Equity Fund Update – April

The Insync Global Quality Equity Fund returned -0.34% in April, outperforming the benchmark by 1.45%.
Nintendo was the largest contributor to performance during the month. Initial market skepticism around the pricing and timing of the Switch 2 launch was understandable, as the new console was unveiled amid
heightened geopolitical tensions following the U.S. announcement of sweeping reciprocal tariffs. However, these concerns quickly faded as global pre-order demand far exceeded expectations. In Japan alone, Nintendo received over 2.2 million lottery applications for the Switch 2, while pre-orders sold out rapidly across major retailers in the U.S. and U.K. We continue to see meaningful upside in Nintendo’s strong brand equity, its portfolio of iconic gaming IP, increasing engagement with third-party developers, and the continued expansion of its higher-margin software business.

The biggest detractor from Fund performance in April was Marsh & McLennan, a global professional services firm. The company reported results that fell slightly short of market expectations, primarily due to a moderation in organic growth and softer margins in its core Risk & Insurance Services segment. While nearterm performance was weighed down by restructuring and fiduciary-related headwinds, management is actively repositioning the business to support future margin expansion. MMC remains a global leader in both insurance and reinsurance brokerage, with the scale and market presence to sustain favorable pricing power even in periods of economic uncertainty.

April was a volatile month even by historical standards. The constantly evolving trade policy backdrop,
combined with investor repositioning around interest rate cut expectations, triggered sharp reversals in
market sentiment. Intra-day volatility surged across global equity markets, with the S&P 500 briefly entering bear market territory on April 7, before rallying 9.5% on April 9 following President Trump’s announcement of a 90-day pause on reciprocal tariffs.

Volatility also spiked across bond and currency markets, just as companies began reporting their financial performance for the first quarter of 2025. Mentions of tariffs surged to an all-time high, as management teams attempted to quantify their exposure and revise earnings guidance accordingly.
While the U.S. earnings season has thus far reflected strong underlying momentum heading into the latest round of tariff uncertainty, we remain cautious on both the macroeconomic and company-specific risks that existing tariffs may pose. With valuations in the U.S. still elevated, we believe the balance of risk remains to the downside. We have identified a broad range of high-quality opportunities outside the U.S. and continue to believe this diversified positioning will support Fund performance going forward.