How the portfolios performed over the June 2026 quarter

Global share markets rebounded strongly over the June quarter as investor confidence recovered following the March sell-off. Resilient corporate earnings and renewed enthusiasm for artificial intelligence supported a broad recovery in share markets, while easing geopolitical tensions in the Middle East improved sentiment. Late in the quarter, a tentative US-Iran peace agreement temporarily reduced concerns about energy supply disruptions, contributing to a sharp fall in oil prices. While this supported markets at the time, the agreement proved short-lived and tensions in the region subsequently re-escalated, highlighting the ongoing geopolitical risks facing investors.

Australian shares delivered positive returns, although they lagged the strong gains seen in many overseas markets. Improving investor confidence supported broad gains across most sectors, led by consumer discretionary, information technology and materials. In contrast, the sharp decline in oil prices weighed on the energy sector, while healthcare was weaker following disappointing earnings. Smaller companies also participated in the recovery but modestly underperformed larger companies.

International share markets delivered very strong gains, led by the US as robust corporate earnings and renewed optimism around artificial intelligence supported technology and other growth-oriented sectors. European markets also performed strongly as easing energy prices and improving economic confidence lifted sentiment, while Japan benefited from resilient domestic conditions. Emerging markets outperformed developed markets, driven by strong gains across Asia, particularly Korea and Taiwan, although China remained a notable exception amid ongoing economic concerns.

Fixed interest markets also delivered positive returns over the quarter. Australian bonds outperformed global markets as domestic bond yields declined, while global bonds produced more modest gains despite US bond yields edging higher late in the quarter. Credit markets remained resilient, with continued demand for income and confidence in corporate balance sheets supporting both investment grade and higher yielding bonds.

All portfolios delivered positive returns over the quarter, benefiting from the strong recovery across financial markets. The Partners Medium, Long Term and Multi-Asset Income Portfolios posted strong gains, while the Partners Short Term Portfolio delivered a solid positive return consistent with its defensive investment objective.

Key Contributors

Key Detractors

Looking Ahead

Renewed conflict between the US and Iran has increased geopolitical uncertainty and driven oil prices higher. If sustained, higher energy prices could add to inflation pressures, complicate the outlook for interest rates and contribute to further periods of market volatility.

Beyond the geopolitical backdrop, the broader outlook remains supportive. Corporate earnings have remained resilient, while investment in artificial intelligence continues to support growth across parts of the global economy. However, elevated valuations and ongoing uncertainty around inflation and central bank policy suggest a selective approach remains appropriate.

Maintaining a diversified portfolio remains important. Focusing on quality investments, sensible valuations and long-term fundamentals should help portfolios navigate periods of uncertainty while remaining well positioned to capture future opportunities.