Unlike many traditional portfolios, the Authentic Core Portfolio does not maintain a fixed equity allocation.

Equity exposure varies based on our assessment of:

• Market valuations
• Economic conditions
• Risk/reward opportunities
• Potential downside risks

This flexibility allows us to become more defensive when risks appear elevated and more opportunistic when attractive investments become available.

Cash is viewed as a strategic portfolio tool rather than residual liquidity.

Many Canadian investors are substantially concentrated in domestic markets.

The Authentic Core Portfolio generally maintains broader global diversification through:

• Higher U.S. exposure
• Meaningful European exposure
• Lower dependence on Canadian cyclical sectors
• Access to a wider universe of investment opportunities

This structure may provide stronger diversification and exposure to global growth drivers.

The Authentic Core Portfolio typically holds between 10 and 30 carefully selected companies.

We believe meaningful active management requires meaningful investment decisions.

Accordingly:

• Capital is allocated selectively
• Portfolio weights differ materially from benchmark indices
• High-conviction ideas receive meaningful allocations
• Active risk is embraced where justified

This concentrated approach creates greater potential for differentiated long-term outcomes than broadly diversified index-like portfolios.

While no portfolio is immune to market declines, we seek to enhance resilience during challenging environments through:

• Higher exposure to secular growth businesses
• Emphasis on quality companies
• Greater exposure to consumer non-cyclicals
• Active management of equity exposure
• Strategic cash reserves

Historically, these characteristics have tended to provide greater resilience during classic demand-driven and credit-driven recessions.

The portfolio is generally oriented toward defensive secular growth.

Sector allocations evolve over time as opportunities and risks change.

Areas that frequently contribute to portfolio positioning include:

Technology

Exposure to innovative businesses benefiting from long-term growth trends and digital transformation.

Consumer Non-Cyclicals

Businesses providing products and services that remain essential across economic cycles.

Communications

Companies benefiting from durable demand, network effects, and long-term industry growth.

Sector exposures are adjusted as valuations, fundamentals, and opportunities evolve.