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(20 YEARS)
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1. Dividend yield is based on current displayed share price, and the most recently declared dividend, annualised
2. Grossed up yield is based on current displayed share price, the most recently declared dividend, annualised, and the tax rate and franking percentage applicable for the most recently declared dividend
SUMMARY
- PIA was broadly flat in November, in a month where global equity markets were also largely unchanged.
- Market leadership shifted towards more defensive areas such as Health Care, while Information Technology softened following a strong run earlier in the year.
- The Portfolio benefited from its exposure to high-quality Health Care companies and continued to apply valuation discipline, exiting ServiceNow after strong share price performance.
COMMENTARY
Market Commentary
Global equity markets were broadly flat in November, finishing slightly lower overall as investors reassessed valuations following strong gains earlier in the year. Market leadership shifted away from Information Technology towards more defensive sectors that had lagged for much of 2025.
Health Care was the strongest-performing sector, supported by renewed investor interest in companies with resilient earnings profiles and less exposure to cyclical swings. By contrast, Information Technology declined after a strong year-to-date performance, as valuation concerns emerged around parts of the sector, including companies linked to artificial intelligence-related hardware and semiconductors.
This shift in leadership was reflected across regions. Markets with a greater exposure to technology manufacturing, particularly in parts of Asia, were weaker during the month as sentiment towards the sector softened. Elsewhere, performance across regions was more mixed, influenced by differences in sector composition rather than broad changes in economic conditions.
Overall, November was characterised by a more cautious tone, with investors favouring balance and selectivity following a period of strong equity market returns earlier in the year.
Portfolio Commentary
PIA was broadly flat in November as markets rotated away from Information Technology towards more defensive sectors. While this shift created headwinds for some areas of the Portfolio, exposure to high-quality Health Care companies provided support during the month.
In Europe, Roche, the Swiss pharmaceutical company, performed well after reporting encouraging interim results for a breast cancer treatment, which demonstrated improved outcomes compared with existing standards of care. The update reinforced confidence in the company’s long-term innovation pipeline and its ability to deliver resilient earnings growth.
In Japan, Chugai Pharmaceutical also delivered strong gains following positive regulatory developments linked to a partnered drug with Eli Lilly. The outcome highlighted the value of exposure to companies with differentiated research capabilities and strong development pipelines. While performance within Health Care was supportive overall, outcomes across the sector varied, underscoring the importance of stock selection.
During the month, the ortfolio exited ServiceNow, a US-based business-process automation company, reflecting the team’s ongoing focus on valuation discipline. While ServiceNow remains a high-quality business, its share price has risen to levels that no longer offered an attractive long-term return profile. The decision to sell was consistent with the Portfolio’s balanced approach to managing risk while protecting capital.
More broadly, November’s market moves reflected a rotation in leadership rather than any deterioration in underlying business fundamentals. The Portfolio remains well diversified across sectors and regions, and the team continues to focus on companies with durable earnings, strong balance sheets and clear long-term growth drivers.
Elsewhere, performance across holdings was mixed. The Portfolio’s positioning helped limit the impact of weakness in Information Technology, while some exposure to companies benefiting from competitive dynamics within artificial intelligence-related markets provided a partial offset. In Industrials, Schneider Electric, a global electrical equipment and automation company, detracted after highlighting more challenging conditions in parts of its end markets, including pricing pressure and currency impacts.
The Portfolio remains focused on owning high-quality global businesses with strong balance sheets and durable competitive advantages. The team continues to take a disciplined, long-term approach, aiming to deliver resilient outcomes for investors across a range of market environments.