Global Equities

Dear Investor,

We provide this monthly report to you following conclusion of the month of April 2026.

The strategy underperformed the S&P Global Infrastructure Index in April, with telecommunications and healthcare facilities the largest contributors to relative detraction. Both sectors faced idiosyncratic headwinds compounded by shifting capital flows as investors navigated a geopolitical landscape that was easing, but far from resolved.

Quanta Services surged 36.37% for the month, extending its run as the market’s most direct expression of grid modernisation and electrification demand. EMCOR added 27.25%, rewarded for contracted backlog visibility and diversified exposure to data centre, federal, and industrial construction that continue to underpin its earnings outlook. Tokyo Gas was the worst performing stock in the portfolio, falling 10.70% on concerns around Japan’s LNG demand recovery and domestic gas pricing. US-based National Fuel Gas similarly declined 10.66% as investors rotated away from regulated utilities with material upstream exposure. Neither move alters the medium-term thesis for either holding.

April was defined above all by the Iran war ceasefire and its immediate consequences for global energy markets. The conflict began in the last week of February with coordinated US and Israeli strikes on Iranian infrastructure; what was anticipated as a short expedition has since settled into a prolonged quagmire, triggering one of the most severe energy supply shocks in modern history. Several false ceasefire starts produced relief that proved short-lived, with market rallies driven more by the unwinding of hedges and speculative positioning than by any fundamental resolution. Apocalyptic predictions have so far not materialised, but further disruptions could cause substantial medium-term economic damage. On a relative basis, abundant domestic energy supplies should allow the US to sidestep much of the more significant economic fallout that may yet emerge across Asia and Europe.

Looking ahead, the two dominant macro narratives are moving, however tentatively, in a constructive direction. The range of outcomes on Iran remains wide, and we continue to favour names insulated from direct energy flow exposure while maintaining conviction in the structural beneficiaries of energy security investment across power and transmission. On trade, Trump’s mid-May visit to Beijing, whilst short of substantial resolutions, produced a meaningful de-escalation, with China committing to over $17 billion annually in US agricultural purchases and an initial order of 200 Boeing aircraft. Details remain thin and implementation uncertain, but the directional signal away from decoupling is supportive for Asia-Pacific infrastructure valuations and for the broader global growth backdrop against which the asset class is priced. The structural case for listed infrastructure remains compelling. We still see AI-driven power demand and the opportunity in grid modernisation and data infrastructure pushing returns in the space for the remainder of the year. The Iran conflict has created substantial impetus for policymakers on energy security, with LNG and pipeline infrastructure continuing to trade at a discount to broad equities which we expect to close in the volatile macro environment.