In the third quarter of 2025, international equity markets experienced a rebound, driven by easing trade tensions and a more stable global economic outlook, which encouraged investors to take on more risk. This positive environment allowed our portfolio to surpass the performance of its benchmark, the MSCI EAFE.
A key contributor to the portfolio's success was the strong performance of Japanese electronics company Murata, which saw increased revenue stemming from higher expenditures in artificial intelligence. This highlights the growing impact of technological advancements on market dynamics and investment opportunities. Our strategic allocations benefited from these sector-specific gains as well as broader market recovery.
The sustained positive momentum in non-U.S. markets, coupled with the strategic outperformance of our managed funds, demonstrates the importance of adaptive investment strategies in a dynamic global landscape. Focusing on fundamentally sound companies positioned to benefit from technological shifts and macroeconomic stability allows for consistent growth. These market conditions underscore the ongoing potential for international investments, particularly in sectors driven by innovation and supported by resilient economic foundations.