And how they’re set up for what’s to come ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ View Online Quarterly Performance Update April 22, 2025 Know When to Hold ‘Em Although most investors’ attention has been, justifiably, on the market effects of the unfolding global trade war, this email focuses on how our managed portfolios performed in the first quarter of the year. We always send these updates, regardless of market conditions. But in this case and in these conditions, we believe our portfolio’s first-quarter performance gives you helpful insight into what you might expect from our investment strategy if market volatility continues in the second quarter. The first three months of the year tested and ultimately reinforced the way we build our portfolios, which focus on geographic and asset-class diversification with exposure to government bonds and gold. We outperformed the broader equity markets and many global investors who came into the year overexposed to U.S. equities. Here’s more detail on what happened in our managed portfolios and funds. Managed Investing portfolio performance Our strategy is to offer diversified portfolios of assets that perform well at different times, in order to maximize our clients’ chances of achieving their investing goals. We do this by adding assets like defensive stocks that offset the typical equity boom-bust cycle over the particular time periods that matter for our investors. We believe that having better returns when markets are weak matters more than having good returns when markets are strong, because extra income matters more to investors when they have less wealth. Alternative investments performance1 These assets can provide either higher expected returns or a mix of high returns and portfolio diversification. Private credit invests in senior-secured floating-rate loans (that means we’re first in line to get paid back, and payments go up or down with interest rates) to medium-size companies. It returned 10.6% in 2024 and 0.9% in January and February (March returns are still pending), and is distributing income at a 9% annualized rate.2 Annualized total returns since inception in June 2023 are 10.6%.3 Private credit has been playing its role well in the portfolio as a consistent source of high returns. Private equity offers a globally diversified portfolio of private companies owned and operated by private equity managers who work aggressively to improve their value. It returned 0.7% in January and February (March returns are still pending), bringing total returns since inception in January 2024 to 37.4%, which is at the very high end of our expectations. For reference, world stocks (which private equity replaces in many portfolios in order to seek higher returns), rose 31.9% during the same period.4 Bond portfolio performance Launched in July 2024, our bond portfolio is still relatively new. The underlying strategy is designed for investors who are looking to earn more than they would by keeping their money in a high-interest savings account. Getting any additional return over cash requires extra risk, but our strategy is designed to take minimal interest rate and credit risk, with expected annual volatility around 2.5%. Relative to our other managed portfolios, this is very low risk, but it can still underperform cash in certain periods. In the first quarter the portfolio returned 0.7%, bringing total returns since July 2024 to 2.8%. The portfolio underperformed cash in March 2025, alongside most assets with credit risk — but we expect to have occasional months like this. The yield to maturity on the portfolio stands at 3.8% as of March 31st, 2025.5 This figure represents what we believe to be the most accurate way of setting expectations for future returns. Despite the name, it doesn’t imply you must hold any assets to their specific maturity, but rather the expected returns you’d get by holding that mix of securities. This yield is roughly 1% above the current interest rate set by the Bank of Canada. Our outlook Stock markets have responded in a resoundingly negative way to the tariff news, falling when tariffs became broader and more likely and rising when tariff expectations receded. This is fairly logical, since tariffs lower growth expectations for companies, shrink corporate profit margins, and expand the risk premium demanded by investors for taking on this additional market volatility. Whether the downward pressure continues on the markets or eases more quickly than expected, our advice remains the same: ensure your holdings are diversified (if you're invested in our managed portfolios, this is already happening for you). And if you do make changes, do it based on your goals and risk tolerance — not the latest headlines. While the recent stock volatility has indeed been very high, for longer-term investors, staying the course is the most prudent path. Remain disciplined and diversified, and remember that the risk of being uninvested far outweighs the risks of short-term market turbulence. Thanks so much for investing with us. If you have any questions, please get in touch. What did you think? Choosing one of the following ratings will shape the content you see from us in the future. You'll also get the chance to share more detailed feedback after clicking. Interested Not interested Wealthsimple, 80 Spadina Ave Suite 400 Toronto, ON, M5V 2J4 Refer a Friend Privacy Policy Replies to this email address are not monitored. Have questions? Visit our Help Centre or submit a request to our Client Support team. 1 Returns shown include all applicable fund management fees and performance fees, but exclude Wealthsimple’s standard management fees for its advisory services. 2 Annualized distribution yield based on $0.077/share, divided by NAV of $10.321 (as of February 2025), and multiplied by 12. To calculate this rate, we take a partial year distribution and convert it to a full-year amount as if it were paid in each period. We then divide this annualized amount by the fund’s value at the start of the period. Distributions are not guaranteed. Past performance does not guarantee future results. 3 Between the fund’s inception in June 2023 and the end of September 2023, the management and performance fees were waived to facilitate certain portfolio investments. In the absence of these temporary waivers, performance figures would be lower. 4 Based on MSCI All Country World Index from December 31, 2023 to February 28, 2025. The past performance of private equity or any other security or investment strategy is not an indicator of future performance, and past performance may not be repeated. This is for informational purposes and does not constitute investment advice. All investments involve risk. 5 Yield to Maturity (YTM) for the Bond ETF portfolio is calculated based on a weighted average yield to maturity of all holdings in the portfolio at the time of the calculation. YTM excludes Wealthsimple's standard management fees for its advisory services, but includes the management expense ratio (MER) fees charged by the underlying ETF manager. The yield information is updated on a monthly basis, current as of April 2025. YTM is subject to change due to fluctuations in market rates, ETF prices, reinvestment of matured securities into additional investment, portfolio composition, and fees charged by the underlying ETF holdings. Past performance is not indicative of future results. The content of this message is confidential. If you have received it by mistake, please inform us by email reply and then delete the message. Do not copy, forward, or in any way reveal the contents of this message to anyone. Managed accounts are offered by Wealthsimple Inc., a registered portfolio manager in each province and territory of Canada. © 2025 Wealthsimple Technologies Inc.