Global Equities

Dear Investor,

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

After two strong months the strategy gave back some ground in August, returning -1.43% while global equity markets advanced. The cause was concentrated and easy to identify: utilities, which make up a little under half the portfolio, detracted 1.75% on their own. Every other sector in the book was positive or near flat. Put differently, one sector produced the entire negative result, and the rest of the portfolio worked.

The utilities weakness was overwhelmingly a US phenomenon. North America cost 1.26% at the regional level, with the United States alone accounting for 0.82% and Canada a further 0.44%. NRG Energy fell heavily over the month, and Vistra, Sempra, Southern, Duke, American Electric Power, Public Service Enterprise Group and Exelon all declined between roughly four and eight per cent. Enbridge was also weak. This is the mirror of June, when the same regulated names led the portfolio higher, and it coincided with a month in which capital again favoured the broader market over defensive income. We have made no change to the positioning on the back of it; the earnings base of these businesses is regulated and contracted, and a four-week price move in either direction tells us very little about it.

Against that, energy was the strongest contributor at 0.37%. Cheniere rose roughly 11%, Targa close to 9%, ONEOK near 6% and Williams around 5%, with BW LPG and GTT also higher. The midstream and LNG names continue to behave quite differently from the regulated utilities despite sitting under the same broad infrastructure heading, which is precisely why both are held.

Japan was again the standout geography, adding 0.42%. Mitsui OSK Lines rose close to 19% and Kansai Electric around 15%, with Iwatani up roughly 8% and Hokkaido Electric near 8%. Asia as a whole contributed 0.20% despite a weak month from SATS, which fell sharply and cost Singapore 0.18%. Technology added 0.27%, with Verizon up around 7% and Deutsche Telekom around 6%, a second consecutive month of recovery for both. Healthcare contributed 0.17%, Tenet adding a further 4% on top of July’s large gain and Encompass Health around 8%.

Europe detracted 0.42%, with Italy and Spain the main sources. Engie, Enel and Terna were softer, and Iberdrola eased back modestly.

There were two meaningful changes to the portfolio. We exited Aena, the Spanish airport operator, and introduced ENAV, the Italian air traffic control operator, a regulated, volume-linked business with a similar exposure to European air traffic but a different revenue structure. We also added to Centrica. Cash finished the month at 3.65%, slightly lower than July.