Portfolio highlights

As at 30 April 2026:

The portfolio produced a positive return for the month and outperformed its peer benchmark . Global shares made a strong recovery in April after the sharp falls in March, due to strong US corporate profits and a ceasefire between Iran and the US. However, the effective closure of the Strait of Hormuz alongside a surge in energy and fertiliser prices, reinforces geopolitical risk as a key driver of inflation and growth outcomes.

The Resolution Capital Global Listed Infrastructure Fund outperformed its benchmark by 1.2% over the month. The fund’s overweight in Industrials contributed positively, while Utilities and Energy detracted due to weaker underlying returns. Gek Terna and Black Hills were the leading contributors. Gek Terna benefited from strong project execution and improving sentiment toward European infrastructure investment, particularly in transport and renewable-linked assets.

The MLC Real Return Assertive fund outperformed its benchmark by 3.1%   in April. The fund utilised cost-effective derivatives strategies to reduced risk immediately after the US began attacks on Iran by selling global equity futures and removing the duration overlay. Towards the end of March, the Fund began to re-build risk exposure, firstly by adding calls over the NASDAQ and emerging markets. Secondly, buying NASDAQ futures and a S&P500 ETF and built out the position in Japan by adding Topix futures.

US share prices made new historic highs with corporates recording their highest profit margins in the last 15 years according to Factset. The largest US technology companies including Alphabet, Amazon, Microsoft and Nvidia are rapidly increasing their Artificial Intelligence (AI) capital investment which is encouraging investors. US economic activity has been solid, but inflation pressures are building given higher commodity prices. The US central bank kept interest rates steady at their April meeting.

Asian share markets achieved robust returns with the optimism on AI and broader technology particularly benefitting Korean (+34%) and Taiwanese (+25%) share markets. Chinese shares also had a brighter positive performance with the benefit of solid results for economic activity in the March quarter.

Australian shares made more modest gains in April. Concerns that the Australian central bank is set to raise interest rates given high inflation and some disappointing profit guidance weighed on Australian shares. The Health Care sector posted a painful -8.4% return with Cochlear recording sharp falls. The Consumer Staples sector also disappointed with caution about higher interest rates squeezing future household spending. More encouraging performances were seen in the Information Technology sector posting a +12.3% return and the Real Estate sector an +8.5% return in April after a slow start to the year.

Australia’s economic data has been mixed with solid job gains, modest household spending but higher inflation. Headline consumer inflation came in at 4.6% in the year to March. Accordingly, markets are expecting that further interest rate rises are coming in the next few months to restrain price pressures.