liza, Author at CC&L Financial Group Ltd.

Connor, Clark & Lunn Infrastructure is featured in Green Street’s examination of renewed investor interest in freight rail as US supply chains are re‑engineered for resilience and efficiency. Green Street underscores the role of rail infrastructure in supporting long‑term industrial competitiveness, while highlighting the view that essential, hard‑asset businesses with strong fundamentals remain well positioned to benefit from these structural shifts – a view that CC&L Infrastructure, owner of Alpenglow Rail, shares.

“More manufacturing in the Americas is going to create more opportunity for rail. It just will,” said Ryan Lapointe, Managing Director, Clark & Lunn Infrastructure. “Anybody who’s manufacturing product in significant volume is going to need access to rail,” he continued, highlighting the role of rail in “resilient” supply chains.

The full article by Matt O’Brien, Journalist, Green Street is below.

Freight rail in vogue as US retools industrial supply chains

Originally published on March 26, 2026

Freight rail, particularly short-haul rail, is seen as a key part of fortifying the US’s ongoing reindustrialization.

Last year, US manufacturing construction spending hit historically high levels of roughly $223 billion, more than double what 2021 registered, according to Brightsmith, an executive search firm in the clean energy manufacturing industry.

New factories for computer chips, batteries, EVs, pharmaceuticals, and data centers are largely driving, arguably, the reshoring and, certainly, the rebuilding of industry, with investors and policymakers hoping such efforts eventually bring back an era reminiscent of mid-20th-century American manufacturing might.

“From our standpoint, we’ve seen some successful movement on reshoring, and see the need for a more resilient global supply chain framework for reliably moving goods,” said Matthew Brand, COO and head of capital markets at ITE Management, an alternative asset manager focused on critical transportation equipment. “Depending on the businesses that get reshored, we may see more intermediate and final assembly than full scale manufacturing.”

For infrastructure investors, the shift to reshoring and recalibrating supply chains – accelerated by post-COVID vulnerabilities and reinforced by the Trump administration’s tariffs – means favoring assets with contracted, diversified cash flows that sit at the new nodes of a more “atomized” North American network, industry participants said in interviews.

Brand identified rails, containers, chassis and trailers – though executives said rail could stand to benefit the most.

“More manufacturing in the Americas is going to create more opportunity for rail. It just will,” said Ryan Lapointe, managing director at Connor, Clark & Lunn Infrastructure, which owns the Alpenglow Rail platform of six rail terminals in key industrial markets. “Anybody who’s manufacturing product in significant volume is going to need access to rail.”

Connor, Clark & Lunn closed a private-placement debt deal for Alpenglow late last year at attractive spreads, citing the platform’s blue-chip customer base, full-suite transloading services and role in “resilient” supply chains. The use of proceeds included capacity for organic growth and M&A, both of which remain active pipelines.

The US Surface Transportation Board’s push to streamline regulation, with faster environmental reviews and potential categorical exclusions that could reduce project costs and timelines, comes at an ideal time and could foster marginal activity that otherwise may not materialize.

Loosening regulation and changing economic patterns mean short-haul railroads and intermodal terminals stand to gain disproportionately as components and sub-assemblies move multiple times between suppliers in a reshored or nearshored environment, rather than arriving in bulk at a handful of gateway ports.

John Porcari, managing director at lnvestcorp Corsair Infrastructure Partners, pointed to that pattern exactly.

“I know there’s a lot of attention on the class one railroads and there should be, but I’d also look at the short haul railroads where they may be a more important part of the supply chain with components and subcomponents than they were in the past. … the same applies to trucking as well,” he said.

Sophisticated original equipment manufacturers, including those in automotive and aerospace, are still mapping their tertiary suppliers and realizing that onshoring assembly does not mean onshoring the components, executives said. The result: more east-west, north-south and even intra-regional movements that favor flexible, rail-linked distribution.

Re/on/near shoring

Those interviewed attested that the reshoring of industry back to the US has been a mixed picture. But for certain businesses that have come back to North America, some assets are seen as central to those changes.

Ports themselves are not being left behind, but the focus is shifting. Cesar Valero Mendoza, partner at ALG, a transportation-infrastructure consultancy, said interest remains high for new or expanded container terminals on the Gulf of Mexico aimed squarely at nearshoring volumes – smaller than traditional international gateways but aligned with rising Mexican manufacturing.

Mexico’s established Tier 1-2-3 supplier base and productivity edge versus Asia, even under higher tariffs, continue to support the case, Valero added.

“Mexico turns out to be more competitive or gains some competitiveness versus Asia,” he said.

Cold storage at inland intermodal nodes, expanded short-haul rail spurs and leasing platforms that can scale with OEM assembly growth are among the more immediately investible pockets, executives said.

Technological tailwinds are also emerging. Mendoza flagged autonomous-truck corridors and dedicated logistics zones as likely developments within five years, driven by persistent driver shortages.

Meanwhile, the Al data center boom is amplifying these logistics tailwinds. Massive power demand growth – the first sustained increase in 25 years after decades of flat load – and the need for construction materials and equipment are boosting rail and intermodal volumes, particularly in the Southeast and Gulf Coast, where reshoring manufacturing and digital infrastructure are converging.

Morgan Stanley Infrastructure Partners sees “bullish pulls” in the Gulf and Southeast from power demand driven by both data centers and reshoring activity, said managing director and head of Americas Chris Ortega.

“So I think reshoring, as opposed to nearshoring, in areas that have overall robust growth for a variety of factors, including reshoring, are the places where we’re going to leg in and express that point of view,” he said. “The ability to diligence the duration or the specific impacted trade routes for international trade volumes due to tariffs and geopolitical events is challenging – and I’m not sure how one does that with conviction over a five-plus-year perspective.”

Tom Murray, managing partner at Power Sustainable Infrastructure Credit, agreed.

He sees reshoring creating broad incremental infrastructure demand.

“If you’re going to reshore things … there’s going to be an incremental need for more infrastructure to support that,” Murray said, explicitly including transport and logistics.

With governments facing deficits and competing priorities such as military spending, private capital – including direct lending – is expected to fill more of the gap.

“Private capital is out there looking to put money to work in reasonable risk-return opportunities,” Lapointe said. “Where things are going to struggle to get built is where there is no reasonable risk-return opportunity.”

In a world where geopolitics and trade are becoming fractured and more uncertain, investors may find stability for projects supporting reindustrialization by harnessing long-term public-private partnership financing arrangements, Porcari said.

“Certainly, uncertainty can be priced into the financing and contracts,” he said. “In fact, we are beginning to see tariff clauses written into P3 contracts.”

Congress will adjudicate on STB’s authorization renewal at the end of this year, presenting policymakers an opportunity to tweak legislation for federal loan programs, like the Transportation Infrastructure Finance and Innovation Act and Railroad Rehabilitation and Improvement Financing Program, so that more assets are eligible for such funding, added Porcari, who was port envoy for the Biden-Harris Administration’s Supply Chain Disruptions Task Force and deputy secretary and COO of the US Department of Transportation under President Obama.

Last week, the federal government and its private-sector partners announced huge P3 deals in the power sector – a 10GW gas-fired power generation project with NextEra Energy and a $4.2 billion high-voltage electric transmission initiative with AEP Ohio.

Meanwhile, those who cannot build are buying.

M&A pipelines in rail terminals and related logistics assets remain active, with disciplined buyers waiting for the right fit with existing customer footprints. About eight deals have been announced over the past 15 months, according to various trade news publications covering the sector.

Major Class I railroad mergers are rare due to strict STB oversight, while short-hauls occur only slightly more frequently. Between 2021-2025, each year averaged roughly one to three deals annually, except for 2025, when around six were closed, according to the same sources.

Some of the more notable deals from the last 12 months have been FTAI Infrastructure’s acquisition of Class II Wheeling & Lake Erie Railway in August 2025; Canadian National clinching its deal for Iowa Northern Railway in January 2025; Union Pacific Corporation’s mammoth $85 billion deal for Norfolk Southern Corporation, creating America’s first transcontinental railroad; among others.

A couple of weeks ago, Ridgewood Infrastructure acquired a controlling interest in Sierra Railroad Company, a California-based shortline rail platform – a move that was seen as expanding the platform’s strategic access to key dairy, agricultural, and industrial corridors, as well as interchanges with Union Pacific and BNSF Railway.

Shrugging off SCOTUS tariff ruling

And while the STB is pursuing a more growth-oriented regulatory environment, government also clouded the reshoring narrative when the US Supreme Court struck down the president’s legal justification for his tariff policy.

Yet, private sector executives doubt that move will kibosh reshoring.

Murray said the Supreme Court decision is unlikely to derail the reshoring trend, as national security and supply-chain resilience remain the primary drivers.

“Even with the recent SCOTUS tariffs decision removing or reducing some of the barriers to importing products, the incentives to encourage reshoring, such as federal loan and grant programs, as well as local and state economic incentives, remain,” Porcari said. “The Supreme Court has taken away a primary stick to encourage reshoring, but the carrots remain.”

Reprinted with permission from the author.

Driven by years of underinvestment, rapid urbanization and the need to adapt to a power-driven, technology-led world, infrastructure spending is a key tool governments use to stimulate economic growth. Regardless of what drives the allocation, civil infrastructure – the systems that underpin essential societal functions – remains a foundational focus of government spending.

The US government’s current focus on infrastructure

The 2021 Infrastructure Investment and Jobs Act (IIJA) is in full swing and will last until 2030 and beyond. The approximately USD1.2 trillion US expenditure bill is allocated to roads, bridges, transport safety, transit, freight, chargers, power and broadband.

Spending on US highways and streets is currently at historic highs, reaching a seasonally adjusted annual rate of approximately $149.5 billion in January 2026. This sector remains a primary driver of public infrastructure growth, bolstered by long-term federal funding. But despite high spending, the American Society of Civil Engineers (ASCE) estimates a $684 billion funding gap for roads over the next decade (2025–2035).

The business cycle is such that architecture and engineering firms gain from the bulk of the work at the onset, executing on planning and design. Then come the bids and proposals on work and equipment, which ultimately fill the backlogs of suppliers and contractors.

The right tools for the job

Based in Downers Grove, Illinois, Federal Signal Corporation (FSS US) manufactures specialized equipment for infrastructure maintenance, public safety and environmental cleaning. The company operates between 24 to 27 principal manufacturing facilities worldwide and directly manages over 40 service centres. Already within our portfolio, the company is one that may be positioned to benefit from infrastructure spending by providing the necessary equipment and technology to support civil infrastructure projects.

Federal Signal’s diversified business groups offer products that serve multiple infrastructure subsectors. The Environmental Solutions Group is the largest manufacturer of dump trucks in the United States. They also manufacture street sweepers, sewer cleaners and industrial vacuum loaders, safe-digging and road-marking equipment. The Safety and Security Systems Group provides technology and systems used by first responders and industrial facilities to protect lives and property.

Federal Signal delivers a comprehensive suite of equipment designed to support a wide range of IIJA-funded project areas, as highlighted in the table below.

IIJA allocation (in USD)	Area of infrastructure investment	Federal Signal equipment
$10 billion	Roads and bridges	Street sweepers, vacuum excavators
$55 billion	Water and sewers	Sewer cleaners
$65 billion	Broadband	Safe-digging trucks
$73 billion	Electrical grid modernization	Safe-digging trucks
$11 billion	Transportation safety programs	Public warning systems, emergency vehicle equipment

Cementing a provider of construction materials

Large scale infrastructure projects such as bridges and transit require longer planning and often are fully realized toward the tail end of the spending period. Global Alpha is positioned through Eagle Materials Inc. (EXP US), an important producer of cement, to strategically capture the roughly USD550 billion allocated for new construction materials.

Eagle Materials possesses regional market dominance: The company’s 70+ facilities are concentrated in the US Heartland, Sun Belt and Mountain West. These inland markets are protected by high transportation costs, which limit competition from cheaper foreign imports.

Between 2024–2025, Eagle invested heavily in modernizing plants like the Laramie, Wyoming facility, increasing cement output by 50% specifically to meet the rise in IIJA-funded municipal projects. Within the same time frame, Eagle converted nearly 100% of its cement capacity to Portland Limestone Cement (or PLC). This low-carbon product is increasingly required for government-funded projects that prioritize environmental sustainability.

Strategically, the company shifted its sales mix toward non-residential and public infrastructure, sectors projected to grow by roughly 5% in 2026, to offset recent softening in the residential housing market.

Global phenomena

Civil infrastructure is being accelerated on a global basis; China spent USD550 billion on transport infrastructure in 2025 alone. Japan just began a USD140 billion mid-term plan for the implementation of national resilience. Global Alpha is exposed to global civil infrastructure buildout through Sany Heavy Equipment International Holdings Co. Ltd. (631 HK).

Hong Kong-listed Sany is the world’s third-largest heavy equipment manufacturer. Their equipment is designed with a focus on being “easy to own, easy to operate and easy to service,” prioritizing essential functionality over excessive technical complexity. The company is also a global leader in concrete machinery, especially after acquiring the legendary German brand Putzmeister. Products include truck-mounted pumps, stationary pumps and concrete mixers. Large-scale engineering contractors account for approximately 45% of Sany’s revenue.

That demand is increasingly coming from outside China: overseas markets now contribute 64% of revenue, led by Africa, where sales surged 55% on the back of infrastructure buildouts. To capitalize on this momentum, Sany has shifted its mix toward infrastructure-heavy “civil works” applications, helping drive a 41% increase in net profit in 2025.

Keeping assets clean, clear and operational

Global Alpha also holds Bucher Industries AG (BUCN SW), a Swiss industrial group that provides specialized machinery and components for essential infrastructure, specifically through its Bucher Municipal and Bucher Hydraulics divisions. Unlike heavy civil construction firms, Bucher focuses on the maintenance, cleaning and operational safety of existing civil assets.

Bucher’s connection to civil infrastructure is primarily functional, ensuring that public and commercial traffic areas remain operational and safe. For sewer and drainage infrastructure, Bucher produces specialized sewer cleaning and water recycling units essential for managing urban water networks and preventing flash flooding on major roadways. Bucher also provides construction site support through its heavy-duty sweepers, specifically engineered to handle the abrasive materials (e.g., aggregate, spoil) found on large-scale infrastructure construction sites.

Civil infrastructure is more than a standalone spending category – it is the operating backbone that enables other critical buildouts, from power and water management to digital connectivity. For Global Alpha, this creates diversified, real-economy exposure to long-duration public investment, spanning both new construction and the ongoing maintenance that keeps cities functioning.

Digital infrastructure is becoming an increasingly prominent topic in institutional investment discussions. In a recent Benefits and Pensions Monitor article, “Is it time to embrace digital infrastructure?”, managing directors Kaitlin Blainey and Andrew Parkes were interviewed, exploring how investors are approaching this fast‑growing segment and what it could mean for portfolio construction.

Highlighted in the piece is how digital infrastructure is being viewed as a complement to traditional infrastructure portfolios rather than a replacement. As investor demand for essential, long-duration assets grows, digital infrastructure is increasingly seen as aligned with the defensive and income-oriented characteristics long associated with the broader asset class.

The article also reflects the growing importance of expertise beyond asset selection alone. Digital infrastructure can play a strategic role within diversified institutional portfolios, particularly as investors weigh considerations around scalability, resilience and long-term capital deployment.

Read the full article

Lime and limestone are materials that have shaped human civilization for thousands of years. Limestone is a common sedimentary rock formed mostly from calcium carbonate. It develops over millions of years from either marine organisms (shells, coral, plankton, etc.) or chemical precipitation in oceans and lakes.

Limestone is converted into lime by burning (calcining) it in a kiln at 1000ºC. Lime can then be mixed with water (hydrated) to form hydrated lime. Finished lime then absorbs CO2 and slowly transforms back to calcium carbonate (i.e., limestone). The lime cycle is one of the oldest known chemical cycles used by humans

Limestone been used as building material for centuries, from pyramids to great cathedrals of Europe, including Notre Dame, Westminster Abbey and St Peter’s Basilica. More commonly it is used as an ingredient in cement and concrete, and in building roads. It is also a widely used industrial mineral, either unprocessed or transformed into a lime derivative.

Limestone is estimated to account for 15% of surface rock on Earth, but high-purity limestone valued in industrial, construction, environmental and agricultural applications is much rarer as are deposits of scale that can be commercially exploited.

Applications across industries

SigmaRoc PLC (SRC LN), a recent addition to the portfolio, is a lime and minerals group targeting quarried materials assets in the UK and Northern Europe. The business is asset backed with over 2.7 billion tonnes of mineral reserves and resources, the equivalent of over 100 years of resources.

SigmaRoc has exposure to the construction, industrial and environmental end markets with applications such as:

Construction

Quarried limestone and granite materials are used in both infrastructure and residential applications such as the construction of roads, railways, bridges, ports, airports and buildings. The main products include aggregates, asphalt, ready mix concrete, pre-cast concrete and dimension stone.

Industrial

Lime is used as a flux in steel and copper production to remove impurities and control melt chemistry.
Quicklime is involved in pulp and paper production.
Limestone powder is used as a filler in paints and adhesives.

Environmental

Quicklime, slaked lime and limestone powder remove acidic compounds from flue gas.
Lime treats drinking water by raising pH, and wastewater by reducing toxicity.
In soil treatment, lime raises soil pH.

Quarries and their locations

SigmaRoc has an advantage in that it owns quarries. In countries where it does not own quarries (the UK and Poland), it has on-site kilns and long-term supply agreements with the quarry owner. Owning the quarry means fixed costs are manageable and ensures both the quantity and quality of supply.

Having quarries located close to customers has key logistical advantages. Firstly, the weight of the product means it is not feasible to ship long distances. Lime products are dangerous to transport due to lime’s high chemical reactivity. It is classified as corrosive under transport regulations and producers need regulatory compliance to ship. Quicklime degrades over time, meaning shipping long distances is unfeasible, reducing the threat of imports.

Integration, growth and megatrends

The three main lime producers in Europe are SigmaRoc and two privately owned Belgian companies. After those, the market is fragmented and the SigmaRoc has a “buy-and-build” growth model. The strategy is to acquire assets (quarries, lime and limestone businesses, related infrastructure) in fragmented local markets, then integrate them to extract synergies, scale and efficiency.

SigmaRoc has cyclical recovery potential and is poised to benefit from megatrends that support long-term growth. If macro conditions improve – supported by infrastructure spending, lower rates and renewed housing policy – SigmaRoc’s scale and flexibility could drive outperformance. Its diversified presence across geographies also helps smooth region-specific cycles.

Future growth is also supported by the ongoing electrification of economy. This creates a huge increase in demand for batteries, and lime is required in the mining and refining of lithium. European steel – and especially green steel – should also benefit from electrification, so long as the industry is protected from high carbon inputs, potentially reduced import quotas and higher tariffs. Beyond electrification, flue gas scrubbing creates an environmental market for lime, a process that addresses shipping emissions.

Limestone and lime are attractive markets due to high barriers to entry, the irreplaceable nature of product and the lack of material import flow into Europe. With an M&A track record as the foundation for future growth, we believe that makes SigmaRoc a compelling investment in the materials sector.

What’s New

We are pleased to announce the recent expansion of our LP Fund platform with the addition of an international equity strategy managed by our Quantitative Equity team and available to eligible US investors.

Market Index Returns (USD)	Q1 (%)	YTD (%)
MSCI All Country World	-3.1	-3.1
MSCI All Country World ex-US	-0.6	-0.6
S&P 500	-4.3	-4.3
MSCI Emerging Markets	-0.1	-0.1

Quantitative Equity Strategies

Long Only Strategies	Q1 (%)	YTD (%)
CC&L Q Global Equity	0.1	0.1
MSCI ACWI Net	-3.2	-3.2
CC&L Q International Equity	2.2	2.2
MSCI ACWI ex-US Index Net	-0.7	-0.7
CC&L Q Emerging Markets Equity	3.6	3.6
MSCI Emerging Markets Net	-0.2	-0.2
CC&L Q Global Small Cap	4.8	4.8
MSCI ACWI Small Cap Index Net	1.1	1.1
CC&L Q International Small Cap Equity	3.4	3.4
MSCI ACWI ex-US Small Cap Net	-0.5	-0.5

Long/Short Equity Extension Strategies¹	Q1 (%)	YTD (%)
CC&L Q ACWI Equity Extension	0.2	0.2
MSCI ACWI Net	-3.2	-3.2
CC&L Q Emerging Markets Equity Extension	4.7	4.7
MSCI Emerging Markets Net	-0.2	-0.2
CC&L Q World ex-US Equity Extension	2.5	2.5
MSCI World ex-US Index Net	-0.9	-0.9
CC&L Q US Equity Extension	-1.6	-1.6
S&P 500 Index (Net 15%)	-4.4	-4.4

Equity Market Neutral Strategies¹	Q1 (%)	YTD (%)
CC&L Q Global Equity Market Neutral (USD)	6.4	6.4
Merrill Lynch 3-month T-bill Index	0.8	0.8

About Connor, Clark & Lunn Investment Management Ltd.

Founded in 1982, Connor, Clark & Lunn is a privately owned investment management organization dedicated to delivering outstanding client service and a wide range of attractive investment solutions to our diverse client base. We understand the investment challenges faced by individuals, pension plans, corporations, foundations, mutual funds, First Nations and other organizations, and focus our efforts on meeting their investment needs by offering a comprehensive array of investment strategies, spanning traditional and alternative asset classes in a variety of quantitative and fundamental styles.

All data is as of March 31, 2026 and stated in US dollars. Source: Connor, Clark & Lunn Financial Group Ltd., FTSE Global Debt Capital Markets Inc., MSCI Inc., Thomson Reuters Datastream and S&P. Portfolio performance is preliminary, based on a representative account for the applicable strategy and may be subject to change. All performance data is gross of fees unless otherwise stated. Gross performance figures are stated after trading expenses and operating expenses but before management fees and performance fees, if applicable. Operating expenses include items such as custodial fees for segregated accounts and for pooled vehicles would also include charges for valuation, audit, tax and legal expenses. Management fees and additional operating expenses would reduce the actual returns experienced by investors. 1. These strategies are subject to performance fees, which will further reduce actual returns experienced by investors.

This publication is for information purposes only and is not an offer to buy or sell, nor a solicitation of an offer to buy or sell any security or other financial instrument advised by CC&L.

For further information on performance, please contact us at [email protected].

Source: MSCI Inc. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. MSCI makes no express or implied warranties or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.

What’s New

Market Index Returns (Local Currency)	Q1 (%)	YTD (%)
MSCI All Country World	-2.5	-2.5
MSCI All Country World ex-US	1.1	1.1
S&P/TSX Composite	3.9	3.9
S&P 500	-4.3	-4.3
MSCI Emerging Markets	2.2	2.2
FTSE Canada Universe Bond	0.2	0.2

Foreign Equities

Foreign Equity Strategies	Q1 (%)	YTD (%)
CC&L Q Global Equity	1.8	1.8
CC&L Q Global Equity Extension¹	1.7	1.7
MSCI ACWI Index (CAD) (net)	-1.5	-1.5
CC&L Q Global Small Cap	6.8	6.8
MSCI ACWI Small Cap Index (CAD) (net)	2.9	2.9
CC&L Q International Equity	4.1	4.1
MSCI ACWI ex-US Index (CAD) (net)	1.1	1.1
CC&L Q International Small Cap	5.3	5.3
MSCI ACWI ex-US Small Cap Index (CAD) (net)	1.3	1.3
CC&L Q Emerging Markets Equity	5.3	5.3
MSCI Emerging Markets Index (CAD) (net)	1.6	1.6
CC&L Q US Equity Extension¹	1.4	1.4
S&P 500 Index (Net 15%)	-2.6	-2.6

MSCI ACWI Sector Q1 Total Returns (Local)

TOP 3

34.8%

Energy

9.3%

Utilities

7.6%

Materials

BOTTOM 3

-6.1%

Information Technology

-7.5%

CommunicationCommuni-cation Services

-10.2%

Consumer Discretionary

MSCI ACWI Country Q1 Total Returns (Local)

TOP 3

27.2%

Norway

24.1%

Korea

21.1%

Thailand

BOTTOM 3

-12.2%

Denmark

-13.6%

India

-18.9%

Indonesia

Canadian Equities

Canadian Equity Strategies	Q1 (%)	YTD (%)
CC&L Fundamental Canadian Equity	3.0	3.0
CC&L Equity Income & Growth	4.3	4.3
CC&L Equity Income & Growth Plus	3.6	3.6
CC&L Q Canadian Equity Core	8.2	8.2
CC&L Q Canadian Equity Growth	8.2	8.2
CC&L Q Canadian Equity Extension¹	7.8	7.8
CC&L Canadian Equity Combined (Q Core/Fundamental)	5.6	5.6
S&P/TSX Composite Index	3.9	3.9
CC&L Fundamental Canadian Small/Mid Cap	11.2	11.2
60% S&P/TSX Small Cap Index & 40% S&P/TSX Completion Index	9.8	9.8

TSX Sector Q1 Total Returns

TOP 3

30.1%

Energy

11.2%

Utilities

10.7%

Materials

BOTTOM 3

-4.3%

Real Estate

-4.5%

Health Care

-22.5%

Information Technology

Canadian Fixed Income

Fixed Income Strategies	Q1 (%)	YTD (%)
CC&L Core Bond	0.3	0.3
CC&L Universe Bond Alpha Plus¹	1.9	1.9
CC&L Core Plus Fixed Income	0.2	0.2
CC&L High Yield Bond²	-0.3	-0.3
FTSE Canada Universe Bond Index	0.2	0.2
CC&L Long Bond	0.0	0.0
CC&L Long Bond Alpha Plus¹	1.6	1.6
FTSE Canada Long Term Overall Bond Index	0.0	0.0
CC&L Short Term Bond	0.2	0.2
FTSE Canada Short Term Overall Bond Index	0.3	0.3
CC&L Money Market	0.6	0.6
FTSE Canada 91 Day T-Bill Index	0.5	0.5

Bond Market Statistics

Balanced Strategies

Balanced Strategies	Q1 (%)	YTD (%)
CC&L Balanced	1.8	1.8
25% S&P/TSX Capped Composite Index & 35% MSCI ACWI Net (CAD$) & 40% FTSE Canada Universe Bond Index	0.6	0.6
CC&L Enhanced Balanced	2.1	2.1
20% S&P/TSX Capped Composite Index & 40% MSCI ACWI Net (CAD$) & 40% FTSE Canada Universe Bond Index	0.3	0.3
CC&L Core Income & Growth	2.6	2.6
50% S&P/TSX Composite Index & 25% S&P/TSX Capped REIT Index & 25% FTSE Canada All Corporate Bond Index	2.4	2.4

Absolute Return Strategies

Absolute Return Strategies¹	Q1 (%)	YTD (%)
CC&L Multi-Strategy	6.0	6.0
CC&L All Strategies	8.4	8.4
CC&L Fundamental Equity Market Neutral	7.4	7.4
CC&L Q Global Equity Market Neutral (Cdn)	5.6	5.6
CC&L Fixed Income Absolute Return	0.1	0.1
CC&L Absolute Return Bond	-0.2	-0.2
FTSE Canada 91 Day T-Bill Index	0.5	0.5

About Connor, Clark & Lunn Investment Management Ltd.

All data is as of March 31, 2026 and stated in Canadian dollars, unless otherwise stated. Source: Connor, Clark & Lunn Financial Group Ltd., FTSE Global Debt Capital Markets Inc., MSCI Inc., Thomson Reuters Datastream and S&P. Portfolio performance is preliminary, based on a representative account for the applicable strategy and may be subject to change. All performance data is gross of fees unless otherwise stated. Gross performance figures are stated after trading expenses and operating expenses but before management fees and performance fees, if applicable. Operating expenses include items such as custodial fees for segregated accounts and for pooled vehicles would also include charges for valuation, audit, tax and legal expenses. Management fees and additional operating expenses would reduce the actual returns experienced by investors. 1. These strategies are subject to performance fees, which will further reduce actual returns experienced by investors. 2. CC&L High Yield Bond Strategy has a custom benchmark, please contact us for more information.

This publication is for information purposes only and is not an offer to buy or sell, nor a solicitation of an offer to buy or sell any security or other financial instrument advised by CC&L.

For further information on performance, please contact us at [email protected].

Connor, Clark & Lunn Financial Group (CC&L Financial Group) is pleased to announce that Josh Borys is joining its leadership team as a Managing Director with a focus on private market affiliates, effective April 1, 2026.

Josh has deep experience in private debt, with prior roles at Sagard Credit Partners and CPP Investment Board in this asset class. He holds an HBA from the Richard Ivey School of Business at Western University.

“Josh strengthens our Managing Director group by adding dedicated capacity in private markets – an area that represents a significant portion of our business today and will be a key driver of future growth, both with existing affiliates and new affiliates over time,” said Michael Walsh, President & Managing Director, CC&L Financial Group.

Josh will be based in Toronto.

At the heart of our organization is the commitment and desire to provide superior performance and service to our clients. Our primary objective is to meet our clients’ expectations while ensuring our people are highly motivated and enthusiastic. This requires that we keep the business narrowly defined on what we do best, and endeavour to remain at the cutting edge of research and development initiatives within financial markets.

Standing still is not an option

Each year, we take the opportunity to provide our clients with an update on our business, outlining how we are directing our efforts within Connor, Clark & Lunn Investment Management (CC&L) to fulfill our commitment to delivering investment performance and superior client service.

Our business has always been defined by continual reinvestment and innovation – standing still is not an option. As we navigate a volatile financial and policy environment, we have focused our efforts on three core areas that are foundational to the long-term strength and sustainability of our firm: our people, our technological capabilities and our physical infrastructure.

Our most important investment is in our people. In 2025, we welcomed 28 new colleagues to the firm, and we plan to add approximately the same number in 2026. These additions span investment and client functions, reinforcing both our current capabilities and our future leadership pipeline. This growth reflects our commitment to building a sustainable business across generations. By investing in talent development, succession planning and the cultivation of emerging leaders, we are ensuring that our clients will continue to benefit from a strong, stable and forward-looking organization.

Technology is the second pillar of our reinvestment strategy. We are upgrading systems across our back- and mid-office functions to enhance operational resilience, improve data integration and expand reporting capabilities. These enhancements strengthen the infrastructure that supports our investment processes and client service delivery. In parallel, we are developing a disciplined approach to artificial intelligence (AI). Our strategy is focused on enabling each area of our business to leverage AI tools and technology to improve investment and business processes. The introduction of AI tools requires adequate and deliberate oversight. Regardless of the complexity and sophistication of the AI integration, our people remain responsible for ensuring the quality and suitability of output and retain ultimate accountability for each function.

Finally, we are making meaningful investments in our office spaces in Vancouver and Toronto. These enhancements are intended to create environments that foster collaboration, creativity and connection. Our redesigned spaces support team-based work, cross-functional dialogue and stronger engagement across investment, client and operational teams. The goal is to create the conditions where ideas can be challenged, refined and implemented efficiently – ultimately benefiting our clients. We look forward to welcoming clients to our new offices in 2026 and sharing these updated spaces in person.

In closing, I extend my sincere gratitude to our clients for your trust, confidence and continued partnership.

Sincerely,

Martin Gerber
President & Chief Investment Officer

Our People

In 2025, our firm continued to grow, welcoming 28 new hires and bringing our personnel count to 150. Our business also benefits from the broader Connor, Clark & Lunn Financial Group, which employs over 500 professionals supporting business management, operations, marketing and distribution.

Our firm’s stability and specialization remain key drivers of our business. Succession planning and career development are central to our approach, ensuring continuity and long-term success.

We are pleased to share that several employees were promoted to Principal, effective January 1, 2026, in recognition of their important and growing contributions to our firm.

CC&L’s Board of Directors is also pleased to announce the promotion of new business owners, effective January 1, 2026, in recognition of their leadership and impact in their roles.

Fixed Income

Over the past decade, the Fixed Income team has invested meaningfully in building a quantitative framework to identify and harvest attractive premia in fixed income markets, initially within benchmark-relative strategies and subsequently in absolute return mandates. As these systematic return streams have proven both attractive and diversifying, client demand for dedicated solutions has begun to grow. In response, the team is developing these capabilities into dedicated quantitative strategies that can be implemented as total return solutions or as a source of portable alpha on top of a full suite of market return streams. We continue to invest in research, infrastructure and talent to deepen these capabilities and support growing client interest in resilient, diversifying sources of return across different market environments.

Sandy McArthur joined the Fixed Income team in May 2025 and quickly became a central driver of strategic initiatives across the platform. Sandy combines strong market experience with technical fluency, enabling the team to move faster and operate with greater discipline. His tenacity, cross-functional skillset and willingness to own complex workstreams have already had a meaningful impact on the business. We are pleased to welcome Sandy as a business owner in 2026.

Fundamental Equity

After more than a decade of US equity outperformance, the team believes the Canadian equity market is well positioned to outperform over the medium term. Attractive valuations, differentiated sector exposure and meaningful leverage to rising global commodity demand create a compelling backdrop for Canadian equities.

The Fundamental Equity team continues to support client investment objectives across mandates. In what has been a challenging environment for active managers in 2025, all strategies – including Canadian All Cap, income-oriented, and Small Cap equities – delivered top-quartile performance relative to their respective peers.

For several years, the Fundamental Equity team has been focused on developing the next generation of investment leaders. Three experienced Senior Research Associates joined the team over the past 12 months, further deepening research capabilities. This deliberate reinvestment underscores the team’s commitment to sustaining performance, enhancing analytical depth and maintaining a competitive advantage relative to peers over the long term. At the same time, the team is actively executing Gary Baker’s succession plan. Effective January 1, 2026, Michael McPhillips was appointed Co-Chief Investment Officer alongside Gary, sharing responsibility for equity strategy, portfolio leadership and overall investment direction. In 2027, Michael will transition into the CIO role, with Gary moving into an advisory role – ensuring continuity, mentorship and a seamless transition. Michael joined CC&L’s Board of Directors in 2026, succeeding Gary.

Quantitative Equity

2025 was a strong year for the Quantitative Equity team. The team met or exceeded added-value objectives across all key strategies, building on successful long-term track records, with sustained growth in clients and assets under management. To support that growth, the team continued to expand its capabilities, growing to 92 members, with 21 new hires in 2025. Investment professionals were added to all sub-teams during the year and investment in leadership resources across sub-teams will continue at a similar pace this year. The steady growth of the team reflects the need to continually expand and reinvest in our capabilities as the size and scope of the quantitative business has grown. At the same time, the focus on implementing differentiated insights remained front and centre, with a new investment model update that was successfully deployed in November.

To support clients in international markets, our pooled fund structures were expanded. This includes our Europe-based UCITS Fund platform for non-US-based investors, a Collective Investment Trust (CIT) platform in the United States for ERISA-regulated pension plans, a Cayman platform for US and other eligible global investors, and an LP Fund platform for eligible US investors. This investment will allow us to serve a broader client base.

Client Solutions

Consistent with the growth in our business, the Client Solutions team continued to grow. Tim Elliott joined the team in June. He was previously President & CEO of Connor, Clark & Lunn Funds Inc., a retail wealth affiliate he founded within the CC&L Financial Group 15 years ago. Tim started making an immediate impact on our business, bringing insights and specialist knowledge of the retail and wealth markets and increasing leadership in the team. He became a business owner in 2026.

Responsible Investing

2025 marked the passing of a decade since the creation of the CC&L ESG Committee. As such, our Board of Directors felt it was appropriate to undertake a review of the committee mandate and governance structure. The outcome of this undertaking led to confirmation that we continue to have the appropriate structure and resources to meet our responsible investing (RI) objectives and concluded that no material changes were warranted.

Business Update

Assets under management

CC&L’s AUM increased by CA$35 billion in 2025 to CA$112 billion as of December 31, 2025. We are pleased to report that our business grew through new client mandates across all investment teams. In 2025, CC&L gained over 100 new clients and 19 additional mandates from existing clients. Most new mandates were for quantitative equity strategies from global institutional investors.

We are proud to be the recipient of a 2025 Coalition Greenwich Award: Best Asset Manager for Institutional Investors in Canada.* This award reflects excellence across both investment performance and client service, as measured by the Greenwich Quality Index.

Final Thoughts

We sincerely appreciate the trust and support of our clients and business partners. We look forward to continuing to help you achieve your investment objectives in the years ahead.

*Throughout 2025, Crisil Coalition Greenwich conducted interviews with 147 of the largest corporate pension funds, public pension funds, financial institutions, endowments and foundations in Canada and other global regions. Senior fund professionals were asked to provide detailed evaluations of their investment managers, assessments of those managers soliciting their business, and insights on important market trends. Connor, Clark & Lunn Investment Management did not provide Crisil Coalition Greenwich with any compensation for this survey.

In-depth macro analysis has always been a cornerstone of this process, based on an understanding that emerging markets are highly sensitive to macro shocks which can overwhelm ostensibly solid company fundamentals. The outbreak of conflict following US and Israeli strikes to take out the Iranian regime is one such event, and has sparked violent moves in markets. Our macroeconomic analysis and risk controls are crucial in helping to navigate a volatile environment.

The approach to macroeconomic analysis here is disciplined and incremental, and does not involve the type of Hail Mary calls (i.e., speculating on President Trump’s war aims) that get market pundits invitations onto Bloomberg and CNBC. Our approach to forming a top-down view of our markets is to mark the direction of travel, whether it be our monetary indicators or more qualitative factors such as politics and institutional quality. We marshal all of these data points into one number which rates the level of conviction for a country with 1 being the highest level of conviction corresponding with a maximum overweight (key caveat: provided we can find the right stocks that fit our process), and 5 being lowest (meaning no exposure at all). As the data changes, we will tweak that level of conviction, which should be tightly aligned with adjustments made in the portfolio.

This work is designed to help us understand how the investment environment is changing through cycles, structural change and theme-driven liquidity. Through this context, we can get a sense of what types of businesses are likely to be rewarded in a given environment and adjust the portfolio accordingly.

Test and re-test

We are big subscribers to the insights of psychologist and writer, Phillip Tetlock, who is an expert on forecasting. His studies found that the best long-term forecasters are those who are able to make probabilistic estimates, calibrate, learn and update beliefs frequently. They make many small corrections to their analysis as fresh data arrives, which leads to better long-run accuracy than rigid “set and forget” predictions. This is the forecasting approach we adopt in both our macro and company analysis, illustrated in our process diagram below.

Through periods of high uncertainty and violent market moves like what we have currently, we lean heavily into this OODA (Observe, Orient, Decide, Act) Loop. This involves a constant testing and re-testing of our macro views and investment hypotheses, and tweaking of the portfolio as conditions change.

Example: lifting oil exposure

Moving from being zero weight in oil companies at the start of 2026 to equal weight (and with more beta to oil than the index) by the end of February is one example of how iterative tweaks in our macro analysis left the portfolio in a better position to weather the events of early March.

Towards the end of last year, one of the most debated topics of discussion in the team was our heavy underweight to the energy sector and, in particular, oil. Our only energy holding at the end of 2025 was uranium miner CGN.

While we remain structurally cautious about oil’s long-term investment prospects, from a portfolio risk perspective we became concerned that having no oil exposure had turned into a crowded consensus trade – especially as weak prices began to squeeze US shale production. This alongside news of a US naval build up in the Persian Gulf, Arabian Sea and Eastern Mediterranean early in the year suggested the portfolio was exposed to risk of a geopolitical shock in the region. Through January and February, we gradually lifted our oil exposure from zero to an equal weight of over 3.5%.

While our macro and risk analysis helped to identify a potential vulnerability, we could not know that conflict was about to break out in early March and drive such a dramatic hike in the price of oil. It was not a case of just adding oil beta to the portfolio. We added Argentinian shale oil producer Vista Energy and Petrochina based on their healthy returns on invested capital sustainable even through weak pricing environments, underpinned by growing production profiles, capital discipline and low lifting costs.

Vista Energy: Production growth and falling lifting costs driving earnings growth

Source: Vista Energy Investor Relations 2026

The lift to oil exposure was timely, helping to preserve relative gains made this year despite sharp drawdowns in other winning positions that had been hit by broad risk-off sentiment.

Where to from here?

We rated the global monetary backdrop as modestly supportive coming into this shock, largely reflecting favourable trends in EM. However, we have been expecting the global stockbuilding cycle to turn down during 2026, giving us a bias to increase defensive positioning at the margin, especially on any signs of monetary weakness.

The energy price spike, unless swiftly reversed, will push up inflation and squeeze real money growth. It is leading to a revision of expectations for central bank policies, which may dampen nominal money growth. Nominal money trends are also at risk from recent tightening in US private credit conditions, which the current shock may exacerbate.

We are cautious and do not expect the negative effects of this shock will be swift to reverse, so our inclination is to add to defensive positioning on any rally, rather than to view current market weakness as a buying opportunity.

Lindsay Holtz and Moira Turnbull-Fox were featured in Benefits and Pensions Monitor article titled “Why micro-communities matter for women’s careers.” They spoke about our Women’s Collective and the importance of creating spaces for women across CC&L Financial Group and its affiliates to connect and support one another.

“There’s lots of external networking events that people can identify, but we identified a gap that was right here at home. It was easy for us to grab that and drive it in the direction that we wanted it to go in,” Lindsay said.

The article coincided with International Women’s Day – a global reminder of the progress made, the work still ahead and the importance of creating environments where women can lead, thrive and be heard. It’s a moment to celebrate achievements, advance equity and reaffirm our commitment to supporting women across our workplaces and communities.

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