In the first quarter of 2026, global markets faced notable turbulence due to escalating geopolitical tensions in the Middle East, particularly involving the United States, Israel, and Iran. The Nomura Climate Solutions Fund Institutional Class shares demonstrated strong performance, significantly outperforming its benchmark. This success can be attributed to exceptional sector allocation strategies that capitalized on the current market conditions. Among the top contributors to the Fund's performance was Darling Ingredients Inc., which thrived amidst the ongoing conflict, highlighting opportunities beyond traditional energy sectors. CF Industries Holdings Inc. also emerged as a key contributor, benefiting from the materials sector's response to the geopolitical landscape. The Nomura Climate Solutions Fund remains well-positioned to leverage structural shifts toward energy independence, supply chain resilience, and decarbonization, trends that have been accelerated by the current geopolitical environment. Overall, the Fund's performance reflects its strategic focus on sectors poised for growth in the face of global challenges.