09 Jul 2026
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The key macro theme during June remained the prospect of higher interest rates for longer as both the US Fed and the RBA maintained a cautious stance amid still-sticky inflation. Bond yields remained elevated, but the Australian market did enjoy some respite from the hike cycle with the RBA choosing to hold rates steady in June after three consecutive rate rises which saw the 3-Year Govt bond rate ease slightly.
Geopolitical tensions also remained in the spotlight with the conflict between the US and Iran, and the on-again off-again peace deals leaving markets in a state of flux. This now appears to be the norm, with many investors repositioning their focus to other topics, most notably the AI boom and its impact on associated industries and companies.
Contention remains around any rotation away from US mega-cap tech companies, magnified by the listing of SpaceX (NASDAQ:SPCX) in mid-June. Whilst there was some early enthusiasm in early trade, the stock has since retreated significantly, albeit it is still trading above its $135 IPO price.
Despite the uncertain backdrop, the broader Australian market proved relatively resilient with the S&P/ASX All Ordinaries Accumulation Index finishing little changed over the month at +0.4%. Beneath the surface however, it was another difficult period for smaller companies. The S&P/ASX Small Ordinaries Accumulation Index declined 2.0%, while the S&P/ASX Emerging Companies Index fell 4.1%, reflecting a soft month for commodities and the ongoing investor preference for larger, more liquid companies.
Performance dispersion across the ASX remained extreme, with some exceptional rises including Pro Medicus (PME) +54%, ZIP Co (ZIP) +41% and A2 Milk (A2M) +39% which recovered recent declines due to supply chain fears.
A number of mining and energy companies struggled including Liontown (LTR) -30%, Resolute Mining (RSG) -26% and Karoon Energy (KAR) -26%. Fears around economic conditions and associated credit quality surfaced, as evidenced by a negative trading update from finance company Judo Capital (JDO) resulting in a sharp decline of 40%.
Against this backdrop, the Cyan C3G Fund returned -0.6% for June, representing relative outperformance against the small company indices.
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Month in Review
The Fund experienced a broad range of individual performances over the month.
Notable strong performers included:
- ION Video (ION) +33%: This provider of technology solutions focussed on virtualising video continues to garner interest based on its potential application across various industries and its ambition to release value from its portfolio of patents. It remains in the early stages of commercialisation but has progressed quickly in recent months as the interest in short-form video and AI-enable searching becomes of increasing interest to corporate partners.
- BLS Pharmaceuticals (BLS) +16%: This rapidly growing licensed pharmaceutical manufacturer and wholesaler of controlled medicines and substances, including cannabis, psilocybin and MDMA, is the largest in Australia and is accelerating its international footprint. The only real change in June was a name change to BLS from Bioxyne (BXN) and a 1:10 share consolidation, but it continues to generate growing investor interest are its revenues expand and market capitalsation (now over $200m) grows.
- Verbrec (VBC) + 12%: Is a provider of engineering and asset management services to the mining, energy, infrastructure and defence sectors. VBC secured a material $21m energy contract towards the end of June. We believe the company is well placed to deliver growth and margin expansion over the next two years, aided by a well-priced acquisition which was completed earlier in FY26.
The underperformers included:
- Credit Clear (CCR) -26%: Some positive news earlier in the month with the appointment of an Executive Director signalled potential acceleration of CCR’s acquisition strategy, was more than offset by the news of ACCC proceedings against the company. We now have this holding on a close watching brief but our initial investigations point to some overreaction in the share decline given the strength of their existing business and solid balance sheet.
- Swift TV (STV) -40%: Positive news flow regarding contract wins continues, but a capital raise (which the Fund did not subscribe to) and debt conversion placed price pressure on the stock. That said, it positions the company to deliver the new contracts by providing some funding headroom and reducing the debt burden. We see this company as approaching an inflection point and it has already announced two new deals with Chevron and Seashell Hospitality so far in July.
Media
There were a number of media pieces done during the month as listed on our website and Linkedin.
Outlook
We expect the existing macro events to continue to drive sentiment for the foreseeable future, most notably the Middle East conflict, it’s impact on the oil price, inflation, supply chains and the subsequent central bank responses.
Our portfolio contains numerous holdings that we view as catalyst rich and well positioned but look for a more favourable environment to release obvious value that is embedded at the smaller end of the market.
We have a number of holdings including Acusensus (ACE), Alcidion (ALC) and Janus Electric (JNS) that have been aggressively pursuing new material contracts and we hold high expectations that some of these will land in the coming weeks and months.
Janus Electric Truck
Investors will begin to look towards the end of July 4C cash flow reports and the more material August reporting season, where stock fundamentals will become the main focus rather than the current sentiment-based macro-influenced trading environment.
Please stay in touch with our intra-month commentary via Linkedin or feel free to contact us at any time.
Dean Fergie and Graeme Carson
Cyan Investment Management
AFSL No. 453209
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