Q1 2026 – Market and Portfolio Update

After a strong 2025, the first quarter of 2026 has proven challenging, largely due to ongoing geopolitical tensions between the US, Israel, and Iran.

While uncertainty continues to shape global markets, our objective remains to consistently generate superior relative returns while keeping volatility as low as possible.

What to Expect in This Update

In this newsletter, we share two types of portfolio updates:

1. Sentient Wealth Investor Portfolios
   These reflect the core portfolios we manage for clients via Allan Gray. They show how each mandate (from Conservative to Unconstrained) is positioned and how it has performed.

2. Paul’s Personal (High-Risk) Portfolio
   This is my own personal portfolio, run independently and with a high risk appetite. This is for the cowboys out there - NOT for your grandma’s portfolio. Please note, this is not financial advice.

For us, transparency is non-negotiable. We believe it’s important to share progress, performance, and context - not just when markets are strong, but at all times.

Ready? Let’s dive in!

1. Sentient Wealth: Investor Portfolio Updates

Below are your portfolio updates for the year so far. If you are a client of Sentient Wealth, you are invested in one of these funds on Allan Gray. For context, here’s how each portfolio is allocated:

• Conservative: 0% Equity, 100% Cash & Bonds

• Cautious: 25% Equity, 75% Cash & Bonds

• Moderate: 50% Equity, 50% Cash & Bonds

• Aggressive: 75% Equity, 25% Cash & Bonds

• Unconstrained: 100% Equity, 0% Cash & Bonds

PS: All clients will receive their personal quarterly statements later today, so keep an eye on the mailbox.

2. Paul’s Personal (High-Risk) Portfolio

A mixed bag indeed.

The standout performers have been the two AI infrastructure plays, Taiwan Semiconductor and ASML, which continue to deliver amid the structural shift toward an AI-driven economy.

Our SA mining play, Southern Palladium, has taken a hit as palladium and other commodities have pulled back following their strong run in 2025. Foschini has also underperformed, reflecting pressure on consumers and ongoing market-share loss to online retailers like Shein and Temu.

It’s still early days. I look forward to assessing performance again mid-year. Hopefully, the war will end soon.

Thank you for trusting us with your wealth. If you have any questions, want to review your portfolio, or just want to chat about what’s happening in the markets, feel free to reach out anytime.

We Move,
Paul & Ingrid