Boeing Co

The commitment by China to purchase jets from Boeing is a major win, ensuring ongoing access to rare earth minerals for the U.S. manufacturing and technology sectors. This strategic move not only strengthens Boeing's position in the global market but also aligns with the broader economic growth trends as the U.S. and China work towards 'strategic stability'. The order of 200 aircraft signifies confidence in Boeing's future prospects and the resilience of the aerospace sector amidst geopolitical challenges.

Boeing remains a key holding for the fund, reflecting our optimism about the commercial aerospace sector's recovery. Despite ongoing production challenges, Boeing's backlog has significantly improved, decreasing from 17.2 years in 2024 to 10.6 years at the end of 2025. This reduction indicates a strengthening demand and positions Boeing favorably for future growth as air travel continues to rebound. We anticipate better times ahead for Boeing, making it a strategic overweight in our portfolio.

We remain focused on areas of the economy where we see the strongest business fundamentals, especially the industrials sector. A key holding here is Boeing, the fund's No. 1 overweight at the end of September. The company is still working to resolve some longstanding production issues. With that said, in our conversations with Boeing's airline customers, we've heard favorable comments about improved quality and on-time deliveries. Additionally, the firm raised roughly $24 billion of capital in the fall of 2024 by selling additional shares of stock, helping to strengthen its balance sheet. All told, we're anticipating better times for Boeing.

Boeing is positioned favorably as demand for widebody jets has increased, reflecting a global recovery in air traffic. The resolution of a seven-week strike has allowed production to return to normal levels. Conversations with Boeing's airline customers have yielded favorable comments regarding improved quality and on-time deliveries. Additionally, the firm raised approximately $24 billion in capital, which has strengthened its balance sheet. Overall, we are anticipating better times for Boeing.

Boeing is the fund's No. 1 overweight, reflecting our positive outlook on the commercial aerospace area of industrials. The easing of supply chains and increased demand for widebody jets indicate a global recovery in air traffic. Following the resolution of a seven-week strike, production is returning to normal. Conversations with Boeing's airline customers reveal favorable comments about improved quality and on-time deliveries. Additionally, the firm raised approximately $24 billion in capital by selling additional shares, which has strengthened its balance sheet. All told, we're anticipating better times for Boeing.