Global Equities

Dear Investor,

We provide this monthly report to you following conclusion of the month of July 2025.

July was an eventful and predominantly positive month for global equities. The Global Infrastructure fund was up 1.43%. The announcement of several ‘framework’ trade agreements and the passage of the OBBBA brought welcome clarity for the remainder of the year. Global equities advanced 1.2%, while the S&P 500 posted solid gains of 2.2%.

A comparatively challenging month for global infrastructure markets, with mixed performance across regions. Sector dispersion was notable, with several individual positions delivering exceptional returns.

Infrastructure construction companies delivered strong performance once again, EMCOR the best performing in the portfolio up 17.4%. This surge was driven by strong quarterly earnings results and robust infrastructure spending tailwinds that continue to support the sector. Sterling Infrastructure maintained its impressive momentum, adding 16.0% in July and extending its year-to-date gains as demand for critical infrastructure projects. Hokkaido Electric provided a pleasant surprise, advancing 15.9% following positive regulatory developments regarding its nuclear plant restart approval—a significant milestone for Japan’s nuclear sector rehabilitation.

The telecommunications sector underperformed during the month, Proximus emerged as the portfolio’s worst performer, declining 13.8% following disappointing quarterly results and mounting concerns over intensifying competitive pressures in the European telecommunications market.

Market Outlook

All eyes will be on the Federal Reserve as markets approach the Jackson Hole Economic Symposium in late August. Fed fund futures are pricing in a greater than 80% probability of a 25 basis point rate cut at the September FOMC meeting. Despite mounting political pressures, the Fed has thus far maintained its commitment to data-driven monetary policy decisions. However, recent downward revisions to May and June non-farm pay rolls suggests the previously robust jobs market—which had been a key justification for maintaining higher rates—is now showing worrying signs of softening.

Energy markets have softened through August amid prospects of a potential ceasefire agreement between Russia and Ukraine, which could lead to the removal or reduction of sanctions on Russian oil exports. This development has contributed to downward pressure on crude oil prices, we don’t believe this weakness will have a significant effect on volumes thus don’t see major downside risks to energy infrastructure valuations near term.

Nuclear sector developments in Japan are beginning to gain momentum, with the Nuclear Regulation Authority approving the restart of reactor No. 3 at the Tomari nuclear power plant owned by Hokkaido Electric. Tomari 3, constructed in 2009, represents Japan’s newest reactor and marks the first restart approval to pass safety screening since 2021. We believe this trend will accelerate, with 14 reactors currently progressing through restart application processes.

‘Animal spirits’ are beginning to stir in the US and we anticipate continued ‘encouragement’ of physical capital investment to facilitate and even improve the economy’s growth rate.