EU UK
Portfolio

The EU-UK Portfolio delivered +2.0% (AUD) in May 2026, generating a positive absolute return while maintaining a disciplined risk posture after strong gains in prior months. The portfolio modestly lagged the STOXX 600 NR benchmark by approximately 70 basis points, but medium-term active returns remain strong, including +8.9% over three months, +21.4% over six months and +23.3% over one year.

Performance was supported by European electrification, semiconductor equipment and grid-exposed industrials, with continued investor demand for companies linked to grid bottlenecks, advanced semiconductor equipment, electrical distribution and automation. These exposures remain central to the portfolio’s view that Europe is increasingly positioned around power infrastructure, industrial efficiency and technology sovereignty.

The modest relative shortfall was mainly driven by the defensive options overlay and selected utility holdings. We view this as a measured cost of maintaining flexibility and protecting capital after a strong period of performance, rather than a change in the portfolio’s structural opportunity set. The portfolio finished the month with approximately 91% in equities and 9% in cash, preserving liquidity while maintaining meaningful exposure to Europe’s power and infrastructure cycle.

The backdrop remains constructive. European policy momentum around AI sovereignty, domestic semiconductor capacity, data-centre power demand and faster grid access continues to support the investment case for electrical equipment, cables, automation, semiconductors, regulated power and energy infrastructure. Overall, May reinforced the portfolio’s ability to generate positive returns while remaining positioned for Europe’s long-term electrification and AI infrastructure build-out.

Performance Summary — AUD Returns to 31 May 2026

Performance is gross of management fees. Based on the aggregation of all managed accounts. Individual account performance may vary. Benchmark is STOXX 600 Net Return Index.

Top 5 positions by average weight. Click any row to expand the investment thesis and Atlas conviction level. Data as at 31 May 2026.

The Emit Capital Atlas Trading System (ECATS) is Emit Capital’s proprietary decision-support framework for portfolio monitoring, risk assessment and tactical positioning. It monitors four independent signal families — momentum, macro regime, volatility structure and AI infrastructure narrative strength — to help determine whether portfolio risk should be increased, maintained, narrowed or hedged.

Interactive breakdown of the EU-UK Portfolio by sector and market capitalisation as at May 2026.