During the first quarter, small-cap stocks globally outperformed their large-cap peers. All-Country Small Cap Indexes were up approximately 9% versus the All-Country Large Cap Indexes which were up approximately 4%. Investors have rotated into small-cap stocks in anticipation of higher domestic and global growth. In Canada, CIBC estimates GDP growth at 5.6% and 4.4% for 2021 and 2022, respectively. The International Monetary Fund (IMF) recently projected 6% global GDP growth for 2021, up from its estimate of 5.5% in January. For 2022, the IMF is estimating global growth of 4.4%. Despite the negative headlines about a third wave of the COVID-19 virus and the rise of variants, the underlying Canadian and global economies remain strong. The low-interest rate environment globally should benefit small-cap companies in a few ways. First, the cost of borrowing remains low, making capital expenditures for businesses more attractive. Second, funding acquisitions through debt or equity is very appealing. Third, low rates have driven a higher allocation of capital into equities relative to fixed income. As a result, small-cap stocks are in the “sweet spot” of investing for at least the next two years. We believe that the Matco Small Cap Fund is well-positioned to benefit from domestic and global growth. The Fund’s underlying investment characteristics remain very appealing relative to its benchmark. As of March 31st, the Fund had an attractive dividend yield at 3.9%. Although the Fund remains underweight in commodities such as energy, base metals, and gold/silver, we believe that our positioning presents an attractive return to risk proposition for investors, with low earnings volatility going forward.