The Big Picture
Australian equities ended last week higher, with the S&P/ASX All Ordinaries gaining 0.2%. After trading lower through the middle of the week, the market finished strongly on Friday following softer-than-expected US jobs data, which reduced expectations of US interest rate rises.
Markets also continued to monitor developments in the Middle East. Concerns around global energy supply eased as tanker flows through the Strait of Hormuz recovered and the US and Iran continued peace talks. Oil prices remained well below the highs reached during the conflict, while OPEC+ approved another modest increase in production quotas, supporting expectations that supply could continue returning to global markets.
Recent US economic data delivered mixed signals. June job growth slowed to 57,000 and came in below expectations, whilst the unemployment rate edged lower to 4.2% and job openings reached their highest level since May 2024. Manufacturing activity showed strength, remaining in expansionary territory for a sixth straight month.
Looking ahead, investors will focus on Australian inflation data from the Melbourne Institute, job advertisements and comments from Reserve Bank of Australia Chief Economist and Assistant Governor Sarah Hunter. Markets will also be watching inflation data from China and Europe, along with the minutes from the US Federal Reserve’s latest meeting for signs of how policymakers are assessing economic conditions and the path of future interest rates.
Shareholder advocacy update on capital gains tax
Last Friday, Wilson Asset Management lodged a submission to the Productivity Commission’s inquiry into Reducing Barriers to Business Dynamism. The Government has asked the Productivity Commission how to make Australian businesses start, grow and innovate. Yet at the same time, it has recently legislated the capital gains tax (CGT) changes, which makes it harder for those businesses to attract the long-term capital they need to grow. In our submission, we have recommended that the Productivity Commission adopt a permanent Capital Formation Test to assess every future investment-related policy before it is introduced.
Chairman and Chief Investment Officer Geoff Wilson AO spoke to Livewire Markets on what the changes to CGT mean for investing and the impact they will have. You can read Geoff’s interview here.
WAM Capital (ASX: WAM), WAM Microcap (ASX: WMI), WAM Research (ASX: WAX), WAM Active (ASX: WAA) and Wilson Asset Management Founders Fund Portfolio Manager Tobias Yao recently travelled to Asia to meet with company management and conduct on-the-ground research. In this first instalment of ‘Insights from Singapore’, he reflects on Australia’s artificial intelligence advantage: infrastructure.
“Artificial intelligence (AI) is shifting from a software narrative to a capital-intensive infrastructure buildout. What began as a race to develop models is now driving demand for physical assets – including large-scale compute facilities, power supply, transmission, batteries and connectivity – and that shift is widening the set of potential beneficiaries beyond global technology leaders. Australia is well placed to capture this opportunity with the security, land and energy profile to benefit.
My recent trip to Singapore reinforced this dynamic, where the limitations of a dense, land-constrained market are shaping how AI infrastructure is deployed across the region. While Singapore remains attractive for its stability and capital access, the practical requirements of ‘AI factories’ (large-scale compute facilities rather than traditional manufacturing plants) have pushed development into neighbouring markets, including Malaysia and Batam in Indonesia. These facilities are highly specialised data centres: large, energy-intensive sites housing advanced servers, where the majority of capital is directed towards computer hardware, particularly NVIDIA (NASDAQ: NVDA) chips, rather than the buildings themselves.
Australia is unlikely to capture the highest-value component of the AI stack, but it screens well as a destination for the supporting infrastructure. Its ‘Five Eyes’ status, political stability and perceived security are attractive to global technology companies, while access to land, power and water provides a practical advantage. Outside of the US, Australia sits among the more compelling locations globally for this next phase of development.
Large compute facilities are better suited to regional areas, where land availability is greater and projects can be co-located with renewable energy generation, batteries and transmission infrastructure. South Australia and Tasmania stand out in this regard. By contrast, metropolitan locations can face greater community resistance, particularly where large, industrial-style developments are located close to residential areas.
The investment implications follow the infrastructure footprint. Contractors involved in building data centres and transmission networks, alongside companies exposed to renewable energy and storage, are most likely to see increased activity. Data connectivity providers, such as Megaport (ASX: MP1), also play a role, as rising data intensity drives demand for flexible network capacity, even if their exposure differs from hyperscale operators.
Australia’s advantage in the AI cycle is grounded in its ability to host and support infrastructure – enabling the systems that power the algorithms, rather than owning the algorithms themselves.”
In the media
Stock Watch
On 26 June 2026, Pengana International Equities (ASX: PIA) announced a series of capital management initiatives to shareholders, including a fully franked special dividend of 12.5 cents per share and an off-market equal-access buyback of up to 100% of eligible PIA shares at the company’s after-tax net tangible assets (NTA), less transaction costs. Following completion of the buyback, a capital raise will be considered, providing continuing shareholders with the option to increase their exposure to the company. PIA’s global equities portfolio will then be transitioned to Antipodes Global Investment Management. The proposals will be considered by shareholders at an Extraordinary General Meeting (EGM) scheduled for 27 July 2026.
The capital management initiatives were put forward by the PIA Board following the completion of a strategic review by the Independent Board Committee (IBC), established in late November 2025 with the aim of positioning the company for stronger long-term performance and enhancing shareholder value. The IBC was established to address the company’s historic underperformance and successive material mandate changes, including a proposal at last year’s Annual General Meeting (AGM) to add significant leverage and illiquid assets, without shareholders being offered a viable opportunity to exit at or close to NTA. This followed the appointment of WAM Strategic Value (ASX: WAR) nominated directors Geoff Wilson AO and Jesse Hamilton, together with two independent director nominees, to the PIA Board at the 2025 AGM of shareholders.
Portfolio Held In: WAM Strategic Value
Siemens Energy (ETR: ENR) provides equipment and services for deploying and maintaining power networks, including gas turbines and grid technology. The company is a key beneficiary of the multi-year electricity demand theme and associated grid investment. As one of only three manufacturers globally capable of producing gas turbines at scale, alongside GE Vernova (NYSE: GEV) and Mitsubishi Heavy Industries (TYO: 7011), Siemens Energy stands to capture a significant share of this growth. The consolidated market structure affords significant pricing power and multi-year order visibility, while each installed turbine generates decades of high-margin service revenue. On Siemens Energy’s recent pre-close call ahead of its third-quarter results, management lifted its outlook for industry demand, citing data centres as a principal driver.
Portfolio Held In: WAM Global (ASX: WGB)
Wilson Asset Management update
After 15 years as Chief Executive Officer, Kate Thorley will transition to the full-time role of Executive Director. In her new role, Kate will be focused on strategic priorities, including continuing to engage with shareholders, while remaining a Director across our listed investment companies.
Catriona Burns, Deputy Chief Executive Officer and Lead Portfolio Manager of WAM Global (ASX: WGB), has been appointed Chief Executive Officer of Wilson Asset Management, supported by the broader leadership team. This planned leadership transition reflects the depth of talent within Wilson Asset Management and ensures continuity for our shareholders and investment team. There is no change to the management of WAM Global, with Catriona continuing as Lead Portfolio Manager. She will continue to be supported by Portfolio Managers Nick Healy and William Liu, and the broader investment team.
Chairman and Chief Investment Officer Geoff Wilson said, “Kate has made an extraordinary contribution to Wilson Asset Management over the past 15 years as Chief Executive Officer. I am delighted she will continue to play a full-time leadership role as Executive Director. Catriona’s appointment reflects the strength of our leadership team, our long-term succession planning and positions Wilson Asset Management strongly for its next phase of growth.”
If you have any questions, please contact April from our Investor Relations team on (02) 9247 6755. Kate and Catriona would also welcome the opportunity to speak with you, so please don’t hesitate to reach out.
Register for the Future Generation HY2026 Interim Results Q&A Webinars
Register for the Future Generation Australia (ASX: FGX) HY2026 Interim Results Q&A Webinar on Wednesday 29 July at 3:00pm (Sydney time), with Geoff Wilson AO, Founder and Director of Future Generation, Lee Hopperton, Chief Investment Officer, and Tom Richardson, Portfolio Manager at Paradice Investment Management.
Register for the Future Generation Global (ASX: FGG) HY2026 Interim Results Q&A Webinar on Friday 31 July at 2:00pm (Sydney time), with Geoff Wilson AO, Lee Hopperton and Nick Markiewicz, Portfolio Manager of Ellerston Capital’s Global Mid Small Strategy.
You asked, we answered
Q. Where can I learn more about investing in your listed investment companies?
A. You can find our latest market updates and resources regarding each investment portfolio on the Wilson Asset Management website. For exclusive insights from our team of investment professionals, the Wilson Asset Management YouTube channel features a catalogue of educational and market-focused content. We recommend watching our recent guide to learning key investment themes in 10 minutes.
Index returns performance table
