June 2026

Market Commentary – June 2026 Quarter in Review 

The S&P/ASX 200 Index staged a resilient recovery during the second quarter of 2026, climbing back to 8,779 points and recouping a significant portion of the losses incurred during March’s steep correction. Following a turbulent start to the year, the market found support as geopolitical events calmed, resulting in a quarterly gain of approximately 3.5%. To highlight market volatility over financial year 2026 the ASX200 index recorded a modest return of 2.8% with a high of 9,203 in late February and low in mid-March of 8,262. 

The primary driver of this stabilisation was a shift in domestic monetary policy. After implementing three consecutive rate hikes earlier in the year, the Reserve Bank of Australia (RBA) opted to hold the official cash rate at 4.35% during both its May and June policy meetings. While RBA Governor Michelle Bullock maintained a cautious, data-dependent narrative, the temporary pause provided much-needed breathing room for the equity markets, shifting consensus expectations toward prolonged period of rate stability. 

Corporate Performance: Sector Divergence and the EOFY Rebalance 

The lead-up to the End of Financial Year (EOFY) exposed a massive performance gap between winning and losing sectors, marking one of the most dispersed fiscal years on record. Key structural themes from the quarter included: 

• Resources Stabilisation & Commodity Pressures: While major bulk miners faced slight consolidation off their lifetime highs, BHP Group anchored the sector through its heavy operational focus on copper and future-facing commodities. Concurrently, mining and development specialist Develop Global (DVP) saw increased market attention and strategic positioning due to its high-grade copper pipeline. This base metal resilience came despite broader headwinds, as gold prices fell over the quarter from their earlier peaks, cooling investor appetite for the lustrous metal however the gold price remains attractive 

• Financials Powering Ahead: Large-cap financial stocks spearheaded the index’s recovery. Premium asset managers and diversified financials—most notably Macquarie Group (MQG) and the Commonwealth Bank of Australia (CBA)—demonstrated superior capital allocation, shrugging off early-year volatility to hit fresh record highs by mid-June. 

• Persistent Consumer Two-Speed Strain: The domestic retail landscape remained deeply bifurcated. High mortgage rates continued to depress discretionary spending for younger demographics, keeping the pressure on mid-to-high tier brands while reinforcing the dominance of value-oriented operators. 

• The Index Shift: The June ASX 200 Rebalance institutionalised a major rotation of capital, flowing heavily away from short-duration tech narratives under AI scrutiny and moving firmly into companies backed by robust, predictable cash flows. 

Portfolio Positioning: Limberg Asset Management 

Following the extreme individual stock volatility observed in March, the portfolio’s core holdings stabilised and showed strong structural rebounds throughout the June quarter. 

Our mid-cap growth allocations, MA Financial (MAF) and Qualitas (QAL), both demonstrated the exact operational resilience we expected when speaking with management. Having pulled back from their previous highs during the early-year volatility, both businesses found solid support levels. Their underlying operational updates confirm that their domestic, real-asset-backed growth pipelines remain highly positive. 

In our large-cap allocation, BHP Group stabilized around the $59–$60 mark after hitting peak operational records earlier in the year. Concurrently, Macquarie Group (MQG) enjoyed an extraordinary run, hitting a new all-time record high of $253.13 in mid-June—marking a spectacular ~24% gain year-to-date. 

Both BHP and Macquarie processed substantial dividend distributions over the past few months bolstering cash reserves. We are actively using this cash cushion to selectively accumulate premium companies at attractive valuations before the new financial year accelerates. 

Income Strategy and Outlook 

Despite the broader noise within global credit markets, our private credit and income-focused holdings have delivered exceptional, steady performance. Our primary credit managers—Aura, Qualitas, MA Financial and Metric Credit Partners—continue to validate our deep-dive asset reviews. 

The structural integrity of these portfolios remains flawless: 

• Real Asset Backing: Portfolios are strictly tied to real assets (primarily Australian residential, commercial real estate and corporate loans) featuring highly predictable income streams. 

• Granularity and Protection: Underlying portfolios, such as the MA Credit Income Fund, are incredibly diverse with short credit durations (~14 to 16 months) and near-zero historical capital losses. 

• Global Insulation: International credit managers exposed to tech valuation swings have suffered under AI disruption scrutiny. Conversely, our mandates are predominantly Australian-focused and based on steady predictable income flows shielding client capital from global tech-credit dislocations. 

• Yield Preservation: With the RBA holding the cash rate at an elevated 4.35%, the floating-rate nature of our private credit assets ensures that yields remain at multi-year highs. Regular monthly distributions, such as those from the MA Financial Priority Income Fund, Metrics Master Income Trust and the Qualitas Real Estate Income Fund (QRI), continue to flow seamlessly into your accounts. 

We view the close of this financial year as an excellent launching pad for the portfolio. The combination of healthy cash yields and stabilised high-quality equity positions us perfectly for the second half of 2026. 

Thank you for your ongoing partnership. We welcome the opportunity to discuss your portfolio positioning or our current market outlook at any time.