Global Equities

Dear Investor,

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

The strategy returned 1.90% in July against a broadly flat month for global equity markets. That makes two consecutive months of solid absolute and relative performance. What is notable is that July’s gain came from an almost entirely different set of holdings to June’s. Utilities, which drove the whole of last month’s advance, were the only negative sector in July, detracting 0.58%. Every other sector contributed.

Healthcare was the largest contributor, adding 0.87%, and within it Tenet Healthcare was the single standout: the stock rose 34.19% and added 0.75% at the portfolio level. Encompass Health added a further 8.40%. The managed-care pressure that made healthcare the weakest sector back in May has clearly begun to unwind, and having added to Tenet in June the position size was helpful.

Asia was the strongest region, contributing 1.63% of the 2.24% total, with Japan alone adding 0.97%. Japan Airport Terminal rose 14.14% and Mitsui OSK Lines 14.93%, while Hokkaido Electric added 12.49% and Kansai Electric 8.55%. The Japanese sleeve, which has been a modest drag through much of the year, is now the portfolio’s most productive geography. Elsewhere in Asia, Kunlun Energy gained 10.66%, Qingdao Port 10.81% and CK Hutchison 9.47%, the last of these continuing the momentum it showed in May.

Energy contributed 0.68%. BW LPG was the leader with a 28.50% gain, adding 0.29%, while Cheniere added 8.66%, Flex LNG 9.59% and Iwatani 9.82%. Technology, the source of June’s largest detractors, reversed completely: Verizon rose 10.09% and Deutsche Telekom 11.60%, together adding 0.54%. Both had been among the worst performers the month prior, and the recovery is a reminder that a single month’s stock moves are rarely a verdict on the underlying business.

The offset came from the regulated utilities sleeve, which gave back some of June’s strength. Vistra fell 7.95% and Quanta Services 8.67%, the latter now the portfolio’s biggest detractor at -0.20%, alongside Public Service Enterprise Group at -6.91%, American Electric Power at -7.92% and Entergy at -7.68%. Williams also cost 0.14%. Iberdrola was marginally negative at -4.06%, though the position participated in a scrip dividend rights issue during the month which accounts for the small unclassified line in the attribution.

Portfolio activity was minimal. We trimmed SATS and made no other trades.

Taken together, June and July make the point better than either month does alone. The two months produced similar returns from almost opposite sources, regulated utilities carrying June, healthcare and Asian transport carrying July. That is what a diversified book of essential assets is supposed to look like: the leadership rotates, the aggregate cash flows do not. We remain positioned for income and inflation-linked growth across the same core holdings.