L1I

Latest Earnings

Unitholder Quarterly Report for March 2026

15 April 2026

L1 Capital International (Unhedged) Active ETF delivered a -13.1% return (net of fees) in the March 2026 quarter, significantly underperforming the MSCI World benchmark return of -6.1%, primarily due to no energy exposure during elevated oil prices, weakness in high-quality software holdings, and broad market preference for near-term beneficiaries over fundamentally sound businesses. The manager views current market dislocations as a compelling opportunity for long-term investors, noting that nearly all portfolio companies are trading at or below their assessed fair value ranges, a rare occurrence last seen in late 2022. Key points: Rare valuation opportunity: nearly all portfolio companies trading at or below lower end of assessed fair value ranges, last seen in late 2022, presenting compelling long-term risk-adjusted investment opportunities; High-quality portfolio fundamentals remain strong: despite significant share price weakness, underlying operational performance of most portfolio companies remains robust with double-digit earnings growth in many holdings (e.g., Mastercard, Visa); Strategic portfolio adjustments: manager initiating positions in high-quality businesses from 'Bench' at attractive prices while trimming positions that reached fair value, demonstrating disciplined capital allocation