Global Equities

Dear Investor,

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

September was a second consecutive negative month in absolute terms, with the strategy returning -1.58%. The relative picture was considerably better: international developed markets fell 5.65% and global equities 1.19%, so the portfolio held up well in a weak month for offshore equities. That takes the September quarter to -1.14%and the calendar year to date to 0.62%.

As in August, US utilities and US-listed energy did most of the damage. North America cost 1.87%, with utilities detracting 0.68%and energy 0.57%, the first negative month for energy in some time. ONEOK, Williams, Cheniere and Targa fell between roughly 8% and 11%, giving back much of the prior two months’ gains, while NRG and AECOM each fell close to 13%. Technology detracted 0.34% as Verizon and Deutsche Telekom reversed their July and August recoveries; Quanta Services was a bright spot, rising close to 6%.

Asia was the clear offset, contributing 0.65%. Japan added 0.34%, largely from a stronger yen against the Australian dollar, Hong Kong added 0.10% on a roughly 6% gain from Qingdao Port, and Singapore contributed 0.15%. Europe detracted 0.34%, led by Italy, where Enel, Terna and ENAV were all softer.

Portfolio activity picked up. We exited CK Hutchison, taking consumer discretionary to nil, and introduced four new positions: Canadian National Railway, Kirby Corporation, Hutchison Port Holdings Trust and Fortum, the Finnish utility. We also added to NRG Energy and Union Pacific. The effect is a shift toward transport and port infrastructure, with the industrials weighting rising from 15.7%to 20.2%.

Three months of flat-to-negative returns is not the outcome we want, but in both August and September the weakness came from the regulated and contracted part of the book, where the income is generated, rather than from any deterioration in the underlying businesses. The new industrial and port positions add volume-linked exposure alongside that regulated base, and the remaining cash gives us room to keep adding.