July 2026

Welcome to the Evenlode newsletter!

Each month we aim to deliver a curated digest of our latest insights, updates, and reflections on the work happening at Evenlode Investment. Our mission remains steadfast: delivering sustainable, long-term returns while prioritising quality, resilience, and the thoughtful stewardship of your capital.

Market Round-up

Volatility returned to the equity markets in June, as investors began to reassess stretched expectations in AI-related growth and duration-sensitive assets. Within technology, the cost of high bandwidth memory has continued to rise, aiding the chip manufacturers while creating cost headwinds for those that use memory. Costs are increasing for hyperscalers and electronics manufacturers, such as Apple, and share prices have fallen in response. The dichotomy of these two technology groups appears unsustainable, and indeed we have seen the market begin to rationalise in July with some early signs of recovery in many of the more traditional quality sectors. We believe the Evenlode portfolios are very well positioned for such a shift in market sentiment.

Market uncertainty is further ratcheted by the ongoing geopolitical developments. Even if peace is restored in the Middle East and the Strait of Hormuz stays open, it may take many months to reset the disruption. Supply chains would recover only gradually, with logistical bottlenecks and energy cost pressures persisting. Inflation is once again the enemy, keeping policymakers alert to second-round effects. In response, central banks have been signalling caution, and the prospect of further rate rises appears likely in the coming months.

For long-term investors, this reinforces the importance of high-quality businesses with durable pricing power, strong cash generation, and resilient balance sheets. In volatile macro conditions, compounding remains the key driver of outcomes. While it is too early to call a market rotation, there are some signs we are finally beginning to see traditional valuation metrics weigh on investor sentiment.

Investment Views

This month, Ben Peters, portfolio manager of the Evenlode Global Dividend fund, discusses how, from forthcoming mega-IPOs to the plumbing of payments and trading, market structures have evolved in a way that is shaping asset values themselves. Ben also analyses the how AI providers are grappling with how to feed their information in beneficial way, and the risks involved, alongside the investment thesis for Zoetis.

Closer to home, Hugh Yarrow and Chris Moore, portfolio managers of the Evenlode UK Select fund, discuss the growing disconnect between fundamentals and share prices, touching on how the combination of solid fundamentals and valuation de-rating has created perhaps the most compelling valuation opportunity since 2009. In particular, they assess how Howden Joinery and Experian have fared in first quarter results, as well as the potential for a significant valuation re-rating of the portfolio over time.

Evenlode Global Dividend

A postcard from America - Part 2

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Evenlode UK Select

Field notes from the portfolio

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To access materials relating to the UK funds you will need to select ‘Investor based in the United Kingdom’ on the Evenlode website.

Issued by Evenlode Investment Management Limited (Evenlode). Evenlode is authorised and regulated by the Financial Conduct Authority, No. 767844.

Whilst the funds Evenlode acts as investment manager for are available to retail investors via third party providers, please note that Evenlode do not have permissions from the FCA to deal directly with retail clients and the information provided in this newsletter and on the Evenlode website is for information purposes only. If you are not an investment professional you may still wish to visit the Evenlode website to find out information about Evenlode and the funds we manage but we recommend that if you wish to obtain advice regarding the suitability of the Evenlode ICAV for you, you should contact a financial adviser. Applications to invest in any fund referred to on the Evenlode website can only be made through a third party and must only be made on the basis of the offering documents relating to the specific investment.

This newsletter is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The sale of shares of the fund may be restricted in certain jurisdictions. In particular shares may not be offered or sold, directly or indirectly in the United States or to U.S. Persons, as is more fully described in the Funds Prospectus.

Please note, any views represent the opinions of the Evenlode Team as at the time of writing and do not constitute investment advice. Where opinions are expressed they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This newsletter is not intended as a recommendation to invest in any particular asset class, security or strategy. The information provided is for illustrative purposes only and should not be relied upon as a recommendation to buy or sell securities. Current forecasts provided for transparency purposes, are subject to change and are not guaranteed. Every effort is taken to ensure the accuracy of the data used in this document but no warranties are given.

For full information on the Evenlode ICAV, including fund risks and costs and charges, please refer to the Key Information Documents, Annual & Interim Reports and the Prospectus, which are available on the Evenlode website. Recent performance information is shown on factsheets, also available on the website. Past performance is not a guide to future returns. Fund performance figures are shown inclusive of reinvested income and net of the ongoing charges and portfolio transaction costs unless otherwise stated. The figures do not reflect any entry charge paid by individual investors.

The Evenlode ICAV sub-funds are subject to normal stock market fluctuations and other risks inherent in such investments. The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested, you should therefore regard your investment as long term. As focused portfolios of between 30 and 50 investments, the Evenlode ICAV sub-funds carry more risk than funds spread over a larger number of stocks. The Evenlode ICAV sub-funds have the ability to invest in derivatives for the purposes of EPM, which may restrict gains in a rising market. Investments in overseas equities may be affected by changes in exchange rates, which could cause the value of your investment to increase or diminish.