In the second quarter of 2025, the Macquarie Global Growth Fund’s Institutional Class shares showcased a commendable performance, achieving positive returns and outperforming its designated benchmark, the MSCI ACWI (All Country World Index) Index (net). This period was characterized by notable contributions from specific holdings within the portfolio, signaling the fund's effective strategy amidst evolving market conditions.
The financial landscape during the second quarter of 2025 experienced a significant uplift. Global markets, as represented by the MSCI ACWI Index (gross), registered an impressive 11.7% return. Following an initial phase of volatility in April, largely influenced by U.S. trade tensions, the markets staged a robust recovery. This resurgence occurred even as new geopolitical uncertainties emerged, underscoring the resilience of global equities.
Among the individual stock holdings that significantly bolstered the fund's performance, Howmet Aerospace Inc., KB Financial Group Inc., and SK Hynix Inc. stood out as the strongest positive contributors. Their strong performances were instrumental in driving the fund's overall gains and its ability to surpass the benchmark. Conversely, NTPC Ltd., UnitedHealth Group Inc., and Aon plc were identified as the primary detractors from the fund's performance during this quarter.
This period's success for the Macquarie Global Growth Fund underscores the importance of strategic asset allocation and rigorous stock selection in navigating complex market environments. Despite prevailing global uncertainties, the fund's ability to capitalize on specific growth opportunities enabled it to deliver superior returns for its investors.
Howmet Aerospace Inc., a prominent global provider of advanced engineered solutions for the aerospace industry, is consistently showcasing impressive financial and operational strength. The company’s core business revolves around the development, manufacturing, and sale of critical components such as jet engine parts, sophisticated aerospace fastening systems, and airframe structural elements. This robust performance is underpinned by Howmet's cutting-edge technological capabilities, which foster continuous innovation and drive significant growth in the dynamic aerospace market.
The second quarter of 2025 proved to be particularly strong for Howmet, with financial results exceeding expectations. The company reported double-digit year-over-year increases in revenue, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), operating income, and Earnings Per Share (EPS). A notable highlight was the achievement of record-breaking free cash flow, underscoring the company's efficient operations and effective capital management. This exceptional growth was primarily fueled by heightened demand within both the commercial and defense aerospace sectors, with the Engine Products and Fastening Systems segments emerging as key contributors to this outstanding performance.
Looking ahead, Howmet's prudent financial strategies, including substantial share buybacks and a recent 20% increase in its dividend, demonstrate a clear commitment to enhancing shareholder value. These actions, coupled with the company's strong operational momentum and favorable market conditions in the aerospace industry, paint a highly positive picture for the future trajectory of Howmet Aerospace stock, reflecting confidence in its sustained growth and market leadership.
Howmet Aerospace's journey exemplifies how focused innovation and strategic financial stewardship can propel a company to new heights, even in highly specialized and competitive industries. Their commitment to advancing aerospace technology not only secures their market position but also contributes to the progress and safety of global air travel and defense. This dedication to excellence and consistent delivery of strong results serve as an inspiring example for businesses aiming for long-term success and positive impact.
Nouveau Monde Graphite (NMG) is nearing a critical juncture, as its Phase-2 Matawinie Mine and Bécancour Battery Material Plant projects inch closer to securing a Final Investment Decision (FID). This strategic move is poised to capitalize on the burgeoning global demand for electric vehicles (EVs) and energy storage solutions, bolstering NMG's position within the North American market. The company's concerted efforts in engineering, infrastructure development, and financial outreach underscore its commitment to establishing a resilient and responsible graphite supply chain.
Amidst a landscape of surging electric vehicle adoption and an increasing need for energy storage infrastructure, NMG is strategically positioned to meet these demands. The company's Phase-2 Matawinie Mine is currently undergoing meticulous detailed engineering processes, alongside active negotiations for crucial contracts. Furthermore, preparations for construction tenders are underway, all meticulously aligned with the broader project financing initiatives. Complementing these efforts, NMG is dedicating resources to developing essential environmental infrastructure at its demonstration mining site, aiming to boost flake production.
Simultaneously, significant engineering work is progressing at the Bécancour Battery Material Plant, benefiting from the specialized expertise of various Asian companies. Extensive large-scale testing is planned at partner facilities to refine processing technologies and to inform future commercialization strategies. These rigorous steps are fundamental to achieving the Final Investment Decision and subsequently commencing construction phases for these vital projects.
NMG is also diligently engaging with prospective clients, financial institutions, and institutional investors to secure bankable offtake agreements and attract strategic investments. The company has already garnered significant interest, receiving letters for over $1 billion (C$1.38 billion) in debt financing specifically earmarked for the Phase-2 projects. This includes anticipated contributions from governmental bodies, public institutions, and export credit agencies, notably Export Development Canada and the Canada Infrastructure Bank.
This proactive development and financing approach, coupled with favorable market conditions—specifically, the duties imposed by the US Department of Commerce on Chinese graphite materials—empowers NMG to leverage the escalating demand for EVs and energy storage technologies. Eric Desaulniers, founder, president, and CEO of NMG, emphasized the company's unwavering focus despite global uncertainties. He highlighted the ongoing refinement of their execution plan to capitalize on political and commercial interests while mitigating vulnerabilities arising from shifting global alliances and resource nationalism, thereby solidifying a North American graphite value chain for the battery sector.
The advancement of Nouveau Monde Graphite's Matawinie Mine and Bécancour Battery Material Plant signifies a pivotal step towards securing North America's supply of critical battery materials. By meticulously addressing engineering, financing, and market positioning, NMG is poised to play a substantial role in the sustainable expansion of the electric vehicle and energy storage markets, ultimately contributing to a more robust and self-sufficient regional economy for these essential resources.