Global Equities

Dear Investor,

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

August delivered solid performance across major asset classes globally. The MSCI World Index gained 2.5% for the month, while the Bloomberg Global Aggregate bond index advanced 1.5%. The second-quarter earnings season continued with corporate earnings broadly surpassed analysts’ conservative forecasts fueling further market growth.

Infrastructure equities were stable over the month, with the Global Listed Infrastructure Fund up slightly returning +0.12%, The largest contributor to outperformance was our overweight position in communication services. Healthcare facilities were also strong contributors to active performance.

Hokkaido Electric Power was the best performing stock, gaining 31.8% following successful safety screening for restart of Tomari Unit 3. Tokyo Gas delivered strong performance over the month following robust earnings and announcement of a share buyback program.

NRG Energy was the worst performing stock over the month, declining 8.4% amid concerns over higher financing costs impacting planned renewable development projects and regulatory headwinds in key markets.

Market Outlook

Signs of economic weakening are emerging in the US economy. While layoffs remain relatively stable, the hiring side of the labour market has stagnated. Though falling short of signaling a recession, the trend in job creation across the broader economy is certainly downward. Uncertainty from evolving administration policies is likely contributing to corporate hiring hesitancy.

The Fed cut rates 25 bps at the September meeting Chair Jerome Powell emphasized the Fed’s commitment to maximum employment and returning inflation to its 2% objective, while signaling readiness for further cuts should economic risks worsen. The Fed’s projections show two additional cuts may occur later this year, with one more possible in 2026 if economic data warrants further easing. In September we start making a shift to more interest rate sensitive parts of the portfolio.

As US rates decline, we expect to see further resurgence in US small and mid-cap infrastructure plays, particularly those with higher leverage profiles that benefit from lower borrowing costs.

Electricity prices in the US continue to surge as AI infrastructure buildout powers forward, creating both challenges and opportunities for utility operators managing grid capacity and infrastructure investment requirements.

While US political uncertainty fuels market volatility, China’s push for a multipolar world through initiatives like the Shanghai Cooperation Organisation summit may reshape global infrastructure investment flows and create new opportunities in emerging market utilities and transport assets.