The portfolio continues to focus on companies positioned to benefit from two major structural forces: artificial intelligence infrastructure expansion, and global electrification and power demand. The expansion of large-scale data centres is significantly increasing electricity consumption, creating compounding opportunities across power generation and grid infrastructure.

Electrification across transportation, buildings, and industrial processes continues to drive demand for advanced electrical equipment and energy efficiency technologies. Our top five holdings — GE Vernova, Nvidia, Eaton, Nextera Energy, and Constellation Energy — collectively represent 45.8% of the portfolio, reflecting concentrated conviction in these structural themes.

Equity markets faced several headwinds during the month, including higher-than-expected inflation data, emerging stress signals within private credit markets, and rising geopolitical tensions in the Middle East. These developments contributed to increased market volatility and a rotation away from high-multiple technology companies.

Despite the S&P 500 declining 3.0% in AUD terms, the portfolio generated +0.9% in AUD (+3.1% USD), delivering 390 basis points of monthly alpha — consistent with our long-term active return of 18.3% per annum above benchmark.