Over the past several years, cruise operators have delivered remarkably resilient operating and financial performance despite geopolitical instability, including US tariff uncertainty, conflicts in Ukraine and the Middle East, broader economic uncertainty and higher energy costs.

Active stewardship continues to gain importance, enabling investors to develop a better understanding of material ESG risks and opportunities, supporting resilient investments and long-term value creation.

The US macroeconomic landscape is transitioning away from a classical ‘Goldilocks’ regime towards a more nuanced environment where softening broader activity meets persistent short-term central bank friction. Despite growing hawkish risks from the Federal Reserve and elevated yield volatility, US small and mid-cap (SMID) equities continue to display remarkable fundamental strength. Backed by solid Q2 2026 earnings execution, upward revenue/earnings revisions across key sectors, and a transformational wave of AI capital expenditure, SMID-caps are delivering superior earnings growth prospects relative to broad mega-cap indexes.