Page 161 - Profile's Unit Trusts & Collective Investments - March 2026

Fund manager interviews Chapter 9

„ Liquidity: US equity markets are the deepest and most liquid in the world, allowing us to enter
and exit positions efficiently.
„ Opportunity set: Rather than limiting ourselves to traditional benchmarks such as the S&P 500
or MSCI indices, we systematically scan the entire US equity market for liquidity. This allows us
to build a differentiated investable universe and identify highly liquid opportunities that may not
yet be widely represented in major indices.
Comment on your investment year (January - December 2025) from a fund manager’s point
of view
The fund’s top holdings were primarily concentrated in the technology and energy sectors
throughout the year. While several of these positions experienced meaningful drawdowns during
the first quarter of 2025, the majority subsequently recovered strongly, with many going on to reach
new all-time highs.
Our current positioning remains aligned with the ongoing AI-driven structural growth theme,
complemented by exposure to energy and hardware businesses that support this long-term shift in
global infrastructure.
From a fund manager’s perspective, 2025 was a strong illustration of the adaptive and reactive
nature of our investment process. Rather than attempting to forecast market turns, the fund
systematically rotated out of sectors losing momentum and into those gaining strength. This
disciplined approach ensured that portfolio exposure remained aligned with prevailing market
trends as leadership evolved over the course of the year.

In terms of risk management, what methods or strategies are you able to use to protect your
clients’ investments?
We employ a systematic, multi-layered risk management framework designed to protect
capital while preserving the integrity of our momentum-based investment process. Risk control is
embedded at every level of the portfolio construction cycle.
„ Momentum-Driven Risk Control: Our strategy is inherently defensive by design. Positions
that lose momentum are systematically reduced or exited, while capital is allocated to
strengthening trends. This disciplined approach helps us avoid prolonged exposure to
deteriorating businesses and potential “value traps,” thereby reducing the risk of permanent
capital loss.
„ Regime-Based Risk Overlay: A dynamic regime filter adjusts overall portfolio exposure
based on prevailing market conditions. In risk-off environments, the Fund shifts away from
concentrated equity positions toward broader market and more defensive exposure. This
framework aims to moderate drawdowns during trendless or down-trending markets.
„ Liquidity and Trading Risk Controls: We invest exclusively in highly liquid instruments to
ensure efficient execution and flexibility.
„ Concentration and Exposure Limits: Maximum per-stock weight: 5%. Cash maintained below
1% of NAV, with excess capital redeployed. Position sizes and aggregate exposures are
capped to reduce idiosyncratic risk
„ Operational and Regulatory Controls: Risk management extends beyond market exposure.
We implement automated pre- and post-trade compliance checks, embed regulatory limits
directly into our portfolio management systems, maintain independent compliance oversight,
and regularly test our disaster recovery and business continuity plans.
Comment on the year ahead and, if possible, estimate the performance of your fund over 2 or
3 years. What are your targets and objectives for the year ahead?
The Methodical BCI Global Dynamic Fund is an actively managed, fully benchmark-agnostic
strategy. We do not reference benchmark weights in portfolio construction. Instead, the fund is built
systematically from the most liquid shares displaying the strongest price momentum.
Our investment approach is strictly rules-based and has been applied consistently since
inception. We have never overridden the stock selection and portfolio construction process since

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