A selloff in software and other artificial intelligence-linked stocks, alongside geopolitical tensions that pushed oil prices higher and revived inflation concerns, created a tougher backdrop for growth-heavy funds during the first quarter. Funds with higher energy exposure, value tilts, or limited exposure to US mega-cap technology generally held up better.
Among global equity funds, GQG Partners Global Quality Equity benefited from a pronounced underweight to technology stocks. The firm had earlier expressed concerns about elevated valuations in the sector.
Read past Morningstar coverage of the fund:
- Why the AI Bubble Is Poised to Burst, According to GQG’s Rajiv Jain
- How a Prominent Fund Manager Dodged 2026’s Software Stock Rout
RBC QUBE Low Volatility Global Equity, a systematic, low-volatility strategy, benefited from limited exposure to technology and greater weight in defensive areas of the market.
Global Equity
In Canadian equities, dividend- and income-oriented strategies were among the stronger performers, helped in part by their sectoral tilt toward energy.
DFA Vector Canadian Equity, a factor-based strategy, was among the top-performing active Canadian equity funds. Its systematic process emphasizes smaller companies, value stocks, and higher-profitability firms—traits that were well rewarded in the quarter’s market rotation.
