Range Resources Corp, a U.S.-based natural gas producer with long-lived reserves, had a total return of -17.2%, a 0.4% detraction from total Fund returns. Despite this, we added to the Fund’s position in Range Resources Corp on lower prices, indicating our belief in its long-term value and potential recovery in the energy sector.

In the first quarter of 2026, Range Resources Corp, a U.S.-based natural gas producer with a large reserve base, delivered a total return of 29.0%, contributing 0.5% to total Fund returns. The energy sector was a significant contributor to the Fund's performance, and Range Resources was highlighted as one of the positive contributors in this space. The manager's focus on the fundamentals and the potential upside in undervalued securities supports the bullish stance on Range Resources Corp.

During the fiscal year, we found opportunities to buy oil and gas companies that trade significantly below our estimates of their risk-adjusted intrinsic value. One of the Fund’s largest positions is in U.S.-based natural gas company Range Resources Corp, which has a long reserve life. We believe that the market is over discounting the risk of oil and gas, implying it is going away completely. This presents a compelling opportunity for investors looking for value in the energy sector.

We have added steadily to natural gas exploration and production (E&P) holdings, including Range Resources (RRC). These companies continue to benefit from growing long-term natural gas demand bullishness. The portfolio currently offers an indicated yield of 3.0% that we project is well supported down to approximately $45/bbl oil, combined with a significantly larger variable return of capital commitment at higher commodity prices.

During the quarter, we increased our exposure to the energy transition by adding Range Resources (RRC) to our portfolio. Range is a low-cost producer with a track record of strong and evolving efforts in responsible business practices and capital allocation. It has over 30 years of high-quality inventory, a balance sheet levered below 1x debt to EBITDAX, and trades at a 10% free cash flow yield. We believe that Range is attractively valued and boasts significant competitive advantages.

Range Resources Corp was mentioned as one of the U.S. natural gas companies that had a total return of 11.7% during the quarter, contributing 0.3% to total Fund returns. The manager noted that they trimmed their position in Range Resources before adding back at lower prices.