Portfolio highlights

The Portfolio generated a negative return for the month, with global shares ending a turbulent November with only a flat return. Concerns over expensive share valuations were countered by hopes for lower US interest rates in December.

Resolution Capital Global Listed Infrastructure Fund - The fund outperformed its benchmark by 1.0% in November, led by strong performance in Utilities with additional support from Industrials and Energy. Top positive contributors were SSE plc, Italgas, and Kinder Morgan. SSE advanced following a well-received strategic update that outlined a fully funded, ambitious multi-year capital investment program centred on UK electricity networks and renewables.

Walter Scott Emerging Markets Fund – The fund outperformed its benchmark by 0.8% in November, driven primarily by strong security selection. Key positive contributions came from Healthcare and Financial Services. Top positive contributors were Leeno Industrial and AIA Group. Leeno Industrial, a leading South Korean manufacturer of semiconductor test sockets and probes, rallied on strong Q3 2025 earnings, reflecting robust global demand for testing equipment fuelled by continued growth in semiconductors and AI applications. 

Resolution Capital Global Property Securities Fund - The fund outperformed the benchmark by 1.2% in November driven by strong stock selection. Top contributors were Welltower, Mitsui Fudosan, and Ventas. Welltower’s shares rose on strong seniors housing fundamentals and major strategic announcements in late October totalling tens of billions in seniors rental housing transactions.  

US shares had a rollercoaster ride in November. Notably technology companies, including Amazon, Facebook-Meta and Microsoft, recorded sharp price falls in early November as concerns over high valuations cautioned investors. However, slower retail spending helped US share prices recover by boosting hopes for the US central bank lowering interest rates in December. Chinese shares fell as China’s slow retail sales and weak property market remain key concerns.

Australian shares disappointed as higher consumer inflation effectively crushed hopes for another interest rate cut in December. The Information Technology sector delivered the weakest performance of -10.8% given turbulence from Wall Street. Financial shares which include banks also suffered with a -6.5% return. The Consumer Discretionary and Real Estate Investment Trust sectors retreated with diminished hopes for lower interest rates. Yet the more defensive sectors of Health Care and Consumer Staples recorded solid gains given more cautious sentiment. Another resilient performance was the Resources sector given the benefit of strong rises in gold and base metal prices.

Australia’s inflation data revealed persistent price pressures that are maintaining the ‘cost of living’ crisis. For the year to October, headline annual inflation came in at 3.8%. This is well above the Reserve Bank of Australia’s (RBA) 2% to 3% inflation target band, so there are diminished prospects for further interest rate cuts. Stronger jobs growth with the unemployment rate falling from 4.5% to 4.3% in October also weighs against the RBA lowering interest rates.