The Property & Infrastructure Fund returned -1.4% in June, behind the benchmark index which returned +3.1%.

Port of Tauranga (+10%) was a top contributor in June following a well-received FY27 tariff schedule that confirmed meaningful increases in container revenue per TEU and a step-up in the infrastructure levy from $40 to $50 per TEU from December 2026. Port of Tauranga presented at a conference hosted by Craigs during the month, highlighting a shift to imports as a demand driver, balance sheet headroom for $600 million of capex, non-strategic land recycling of $152 million, and reaffirmed the Stella Passage berth extension decision due by 7 September. Trade volumes have remained resilient.

AENA returned +7% in June, comfortably ahead of other major global airports. The month lacked a discrete company catalyst; instead, the move reflected a favourable macro rotation. Oil fell roughly 19% to $72.9, unwinding the post-conflict spike from earlier in the year and easing concerns about jet-fuel-driven passenger softness. The US 10-year yield was essentially unchanged at 4.47%, a benign backdrop for regulated infrastructure valuations. Sentiment continued to favour the "HALO trade" — hard, low-obsolescence, natural-monopoly assets with inflation pass-through — where AENA screens well, and Spain's low Middle East exposure remains a relative advantage versus other European airports.

Tower stocks had a difficult month, with American Tower (-12%) and Crown Castle (-16%) among the weaker performers. The move was driven almost entirely by sentiment regarding the potential impact on long-term earnings. This contrasts with management teams reiterating confidence in growth and leasing activity at several conferences recently. The catalyst was SpaceX's IPO, which reignited investor concerns about satellite broadband displacing ground-based infrastructure.

Our analysis suggests satellite could capture 5–10% of the U.S. broadband market over time, but this market share is more likely to come from copper and cable than from fixed wireless (which is served from towers). Reaching the higher end of that range would require Starlink to cut prices in half and execute well beyond its natural rural catchment area — a high bar. While a slower pace of fixed wireless deployment is a risk we will monitor for towers, we believe the market is currently pricing in more disruption than the technology can support today.