The first quarter of 2026 saw the Global Equity Fund navigate a landscape of economic resilience alongside rising geopolitical and macroeconomic uncertainties. The fund's performance was influenced by various sector-specific contributions and detractions, highlighting the intricate dynamics of global investment. Despite some headwinds, the fund's managers maintain a forward-looking perspective, emphasizing the importance of fundamental quality and strategic positioning in an evolving market environment, buoyed by global stimulus initiatives and projected earnings growth.

Amidst the varied performance across sectors, the fund's overall strategy focuses on identifying companies with robust financial health and sustainable competitive advantages. This approach is deemed crucial for long-term outperformance, especially in a period characterized by both challenges and opportunities. The commentary underscores a belief in the underlying strength of global markets, despite current volatility, as evidenced by supportive macroeconomic policies in key regions.

Quarterly Performance and Sectoral Influences

For the first quarter ending March 31, 2026, the Global Equity Fund recorded a return of -3.58%, reflecting the performance of its Class I shares with all distributions reinvested. This period presented a complex interplay of factors, where specific sector allocations played a pivotal role in shaping the fund's overall results. While some sectors positively influenced performance, others experienced setbacks, leading to the reported net decline.

Delving into the specifics, the Information Technology sector emerged as a significant contributor to the fund's relative performance. This positive impact was largely attributable to a strategic allocation to Asia Vital Components Co., Ltd., a prominent electronics manufacturing firm based in Taiwan, which constituted 2.4% of the fund. Conversely, the Consumer Discretionary sector acted as a detractor from relative performance. This was primarily driven by the fund's allocation to Persimmon Plc, a U.K.-based homebuilder, which represented 1.6% of the fund. These contrasting performances underscore the selective nature of market returns and the importance of individual security selection within different economic contexts.

Global Market Outlook and Investment Philosophy

Lord Abbett's analysis of the global market reveals a compelling investment landscape, despite the prevailing uncertainties. The firm identifies that significant stimulus efforts across major economies, including Germany, the European Union, China, and Japan, are actively fostering a resurgence in earnings growth throughout Europe and the Asia-Pacific region. This widespread support for economic activity underpins a positive outlook for global equity markets, suggesting underlying strength that can be leveraged by discerning investors.

In this dynamic environment, Lord Abbett places a strong emphasis on specific quality metrics as crucial determinants for corporate outperformance. Key factors highlighted include a robust return on equity, healthy free cash flow generation, and prudent balance sheet management. The firm believes that companies exhibiting these characteristics are better positioned to navigate market volatility, capture growth opportunities, and ultimately deliver superior returns to shareholders. This investment philosophy underscores a focus on fundamental strength and resilience, aiming to build a portfolio capable of thriving amidst diverse market conditions and capitalize on the sustained economic recovery propelled by global stimulus.