Navigating Healthcare's Dynamic Landscape: A Q4 2025 Retrospective

Fund's Stellar Q4 2025 Returns Highlight Strategic Investment Acumen

For the fourth quarter of 2025, the fund recorded impressive returns: 11.83% for Institutional shares and 11.78% for Investor A shares (excluding sales charges). This strong performance underscores the fund's effective investment strategies and robust portfolio management within the dynamic health sciences sector.

Security Selection and Sector Focus: Key Performance Drivers

The fund's superior relative performance was primarily driven by astute security selection. Investments in health care providers and services emerged as the most significant contributors to these positive returns, showcasing the fund's ability to identify and capitalize on strong performers in this industry segment. Conversely, holdings in the biotechnology sector presented some headwinds, detracting from overall relative returns.

Strategic Reallocation: Adapting to Evolving Market Dynamics

During the quarter, the fund strategically adjusted its sector allocations. There was a deliberate increase in exposure to the pharmaceuticals and biotechnology industries, signaling a bullish outlook on these areas. Concurrently, the fund reduced its allocation to the medical devices and supplies industry, reflecting a measured response to changing market conditions or reassessed opportunities within that segment.