MPC ETF Elite – Holdings Change 7th April 2025

Market Outlook and Strategy

In light of the recent market sell-off triggered by President Trump’s announcement of new global tariffs, we will reduce our exposure to risk assets and increase our holdings in cash and fixed income to preserve capital. These tariffs, which impose a 10% tariff on most U.S. imports and higher levies on dozens of other countries, have shaken investor confidence and led to fears of a global trade war and recession. The move is intended to reduce risk and provide stability during this period of heightened market uncertainty. Once the market stabilizes, we will reallocate the proceeds back into the index to maintain our long-term investment strategy as stated in the product description. The investment committee meets monthly to make rebalancing decisions.

Rationale:

• Increased Market Volatility: The unexpected announcement of tariffs has injected significant volatility into the market. The S&P 500 has already seen a substantial decline, and market analysts anticipate continued turbulence as the full impact of these policies unfolds.

• Shift to Safety: In times of economic uncertainty, investors tend to move towards safer assets such as cash and fixed income. Decreasing our exposure to more volatile assets like copper miners and rebalancing into these defensive positions will help to protect the portfolio from further downside risk.

• Temporary Measure: The investment committee views this adjustment as a temporary measure to navigate the current market conditions. Once the market shows signs of stabilization, we plan to reallocate the funds back into our core holdings to maintain our strategic asset allocation.

• Risk Management: Prioritizing capital preservation during market downturns is in line with the risk management objectives outlined for the ETF Elite portfolio, which aims to mirror the risk characteristics of the ASX 200, as explained in the product description.

Re-Entry Strategy:

The investment committee will closely monitor market conditions and economic indicators to identify opportunities to re-establish our positions in the broader market. Factors we will consider include:

• Trade Negotiation Progress: Any signs of progress in trade negotiations between the U.S. and its trading partners would be a positive signal.

• Market Stabilization: A sustained period of reduced volatility and positive market momentum will indicate a more favorable environment for re-entry.

• Economic Data: Improvements in key economic indicators, such as GDP growth, employment, and consumer spending, will support a return to risk assets.

Summary of Actions:

• Sell: 2.5% WIRE Global X Copper Miners ETF

• Sell 5% QUAL Vaneck MSCI International Quality ETF