The managers initially note that software companies weighed on performance during the first quarter following a broad sell-off driven by concerns surrounding artificial intelligence. This weakness also spread to other sectors focused on intangible assets.
Meanwhile, energy markets were impacted by the conflict in Iran, which is assessed as potentially leading to more persistent inflation than previously expected.
During the quarter, the fund benefited primarily from holdings in Canadian Pacific, Home Depot, and Waste Management, which acted as safe havens.
On the negative side were Microsoft, Brunello Cucinelli, and RELX. Luxury companies were weighed down by weak macro sentiment, while RELX was hit by market anxiety regarding artificial intelligence.
Regarding portfolio activity, the fund divested its shares in Home Depot, Accenture, and Microsoft during the quarter.
"Microsoft exited the portfolio as capital expenditures appear excessive and are not in the best interest of shareholders," the managers write.
Concurrently, new positions were initiated in Amadeus and Stora Enso.
Looking ahead, the managers assess that market uncertainty remains high in the current political climate. Consequently, the fund is sticking to its strategy of maintaining a concentrated portfolio of well-managed companies, which are expected to deliver attractive returns over time and weather any potential storms.
At month-end, the fund's three largest equity holdings were RELX, Canadian Pacific Kansas City, and TMX Group, with portfolio weightings of 7.4, 6.8, and 6.4 percent, respectively.
Geographically, the United States represented the largest market with 47.1 percent of the allocation, followed by Canada at 17.4 percent and the Netherlands at 8.4 percent.
The fund's largest sectors were financials, industrials, and consumer discretionary.
| SKAGEN Global A, % | March, 2026 |
| Fund MoM, change in percent | -1.39 |
| Index MoM, change in percent | -2.00 |
| Fund YTD, change in percent | -7.17 |
| Index YTD, change in percent | 0.03 |
