i. Performance for periods greater than 12 months is the compound annual return.
Total Shareholder Return refers to the movement in share price plus dividends declared for the period, not including the benefit of franking credits attached to dividends paid
Total Portfolio Return refers to the movement in net assets per share, reversing out the impact of option exercises and payments of dividends, before tax paid or accrued on realised and unrealised gains.
Index refers to MSCI World Total Return Index, Net Dividends Reinvested, in A$.
Past performance is not a reliable indicator of future performance, the value of investments can go up and down. None of Pengana International Equities Limited (‘PIA’), Pengana Investment Management Limited nor any of their related entities guarantees the repayment of capital or any particular rate of return from PIA. This information has been prepared by PIA and does not take into account a reader’s investment objectives, particular needs or financial situation. It is general information only and should not be considered investment advice and should not be relied on as an investment recommendation. The figures are unaudited.
Source: PCG and Factset.
ii. 20 Year Annualised Standard Deviation as at the last day of the last month prior to publishing this report.
iii. Relative to MSCI World Total Return Index, Net Dividends Reinvested, 20 Year annualised Beta as at the last day of the last month prior to publishing this report.
iv. As at the last day of last month prior to publishing of this report. The figures are unaudited.
v. Index/MSCI World refers to the MSCI World Total Return Index, Net Dividends Reinvested, in A$.
COMMENTARY
Market Commentary
Global share markets edged higher in June, supported by resilient economic data and renewed optimism around artificial intelligence. After a volatile start to the year, investor sentiment improved as confidence grew in the long-term potential of new technologies and the ability of businesses to adapt and invest for the future.
The US market performed well over the month, led by gains in large technology companies. However, it remains one of the weaker-performing regions so far this year, with ongoing concerns around tariffs, inflation, and government spending continuing to weigh on the outlook. In contrast, Emerging Markets performed strongly, helped by a sharp rebound in South Korea. Local shares rose following the election of a new president, who pledged to improve corporate governance and make companies more accountable to shareholders.
Technology and Communication Services were the strongest sectors in June. Many companies linked to artificial intelligence regained ground, following earlier weakness. While some delayed the release of new AI products, overall progress continued, and there was growing belief that these technologies will drive future business growth across many industries.
Although some uncertainty remains, markets were supported by stable economic data, stronger business confidence, and a long-term focus on innovation and productivity.
Portfolio Commentary
The portfolio rose in June, supported by encouraging updates and stronger sentiment across several companies linked to artificial intelligence and digital innovation. While a few holdings in the Technology and Materials sectors faced some short-term challenges, the overall result reflected the portfolio’s focus on quality and long-term growth.
One of the strongest contributors was Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest producer of advanced computer chips. The company reported strong monthly revenue, driven by growing demand for AI-related technology and rising orders from major clients. Meta Platforms, the owner of Facebook and Instagram, also performed well. Its share price reached a new high during the month, supported by continued progress in applying artificial intelligence across its advertising and social media platforms.
Another positive contributor was Netflix. The company’s share price rose as analysts responded positively to its growth in advertising-supported subscriptions and its plans to expand into live sports broadcasting.
Disco Corporation also made a positive contribution during the month. The Japanese company manufactures specialised equipment used to cut and polish semiconductors, and its share price rose as investors responded to stronger demand for AI-related chips. The portfolio initiated a position in Disco in June, reflecting the team’s confidence in the company’s long-term growth outlook and leadership in a key part of the semiconductor supply chain.
On the negative side, Adobe’s shares declined after the company flagged a slower path to generating revenue from its AI tools. Symrise, a German supplier of fragrances and flavours, also fell after warning that second-quarter growth would likely be weaker than expected. CME Group, a major US derivatives exchange, gave back some earlier gains after a strong run earlier in the year – CME tends to outperform in more volatile periods and is included in the portfolio for its defensive characteristics.
The portfolio remains focused on owning high-quality businesses with strong fundamentals and sustainable growth drivers. While some short-term share price movements are inevitable, the investment team continues to look for companies that can navigate uncertainty and deliver long-term value for shareholders.