Page 11 - Client Review Report Redacted

Outlook

Our outlook isn’t overly changed but remains somewhat different from consensus (i.e. the broader
market), which presents both risk and opportunity. We continue to think the market is
underestimating the likely characteristics of a “soft-landing”, where we expect weaker economic
conditions ahead but aren’t necessarily in the recession camp. We also think the equity market is
too narrowly focused on a small number of winners, increasingly only benefiting anything A.I. related
whilst treating this thematic as somewhat immune from the economic backdrop. History shows that
nothing is immune to the economic backdrop, unless we’re now playing with monopoly money.

This goes somewhat to explaining our more cautious tone and stance in portfolios. We still want to
be participating in markets, but we’re very conscious of the risks surrounding inflated expectations
and overcrowded trades. A broadening of market winners would be a welcome reprieve, a boon for
truly active managers, given our preference for fundamentally focused/grounded long-term
investment approaches.
Asset Class performance – June Quarter 2024
Sector Quarter 1-Year CYTD
movement movement movement

Australian Shares -1.1% 12.1% 4.2%
Australian Shares (Small) -4.5% 9.3% 2.8%
International Shares 0.5% 19.0% 13.7%
International Share hedged 2.9% 19.4% 11.3%
Global Emerging Markets 2.6% 12.2% 9.8%
Australian Property Securities -5.6% 24.6% 10.2%
Global Property Securities -3.7% 4.6% -0.8%
(unhedged)
Global Infrastructure (unhedged) -1.3% 4.9% 5.0%
Australian Fixed Interest -0.8% 3.7% 0.2%
International Fixed Interest -0.2% 2.7% -0.5%
Cash 1.1% 4.4% 2.2%
Source: Morningstar Direct
Indices:
Australian Shares S&P/ASX 200 TR AUD
Australian Shares (Small) S&P/ASX Small Ordinaries TR AUD
International Shares MSCI ACWI NR AUD
International Share hedged MSCI ACWI NR USD
Global Emerging Markets MSCI EM NR AUD
Australian Property Securities S&P/ASX 200 A-REIT TR
Global Property Securities (unhedged) FTSE EPRA NAREIT Global REITs TR AUD
Global Infrastructure (unhedged) FTSE Global Core Infra 50/50 TR AUD
Australian Fixed Interest Bloomberg AusBond Composite 0+Y TR AUD
International Fixed Interest Bloomberg Global Aggregate TR Hedged AUD
Cash Bloomberg AusBond Bank 0+Y TR AUD

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PSK Financial Services Group Pty Ltd (ABN 24 134 987 205) trading as PSK Private Wealth
PSK Advisory Services Pty Ltd (ABN 30 008 587 595) AFSL 234656