A flat month for the Portfolio, underpinned by a better month for the Portfolio’s fixed income holdings, offset by a softer month for the Portfolio’s equity positions. Returns from fixed income benefited from lower interest rates on the back of softer economic data in several regions, with the exception being Australian dollar bonds, where interest rates increased on the back of sticky inflation and growing risks of another hike by the Reserve Bank of Australia. This is a risk we have been cognisant of for some time now, hence the Portfolio had minimal exposure to Australian interest rates. The mix of the Portfolio’s shares was a headwind in June, as AI enthusiasm continued to drive technology stocks higher. We continue to think that the valuations of many of these share’s leaves very limited room for earnings disappointment. Within the mix of shares, leaders this month included software company Microsoft (+7.7%), insurer Suncorp (+9.4%), and infrastructure business Infratil (+7.1%). Microsoft benefited from ongoing demand for AI-exposed companies, while Suncorp was stronger given expectations of strong insurance pricing. Infratil performed well on the back of a $1.1b equity raise to fund accelerated growth in data centres. Looking ahead, the economic outlook is mixed. Positives are improving real wages and strong financial positions for many consumers. Negatives are growing signs of an easing US labour market, which may translate into softer consumption in coming quarters. Share market valuations are also elevated by historic standards. Regardless of the economic environment, the Milford team continues to identify attractively valued investment opportunities.