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NTA POST-TAX
NTA PRE-TAX
PORTFOLIO RETURN
(20 YEARS)
DIVIDEND YIELD1
CONSECUTIVE QUARTERLY DIVIDENDS PAID
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
- The Portfolio rose 0.7% in September, supported by gains from select global technology holdings, though returns were more measured than broader global markets.
- Global equities advanced, led by semiconductor and hardware companies benefiting from continued investment in artificial intelligence, while defensive sectors such as Consumer Staples declined.
- A new investment was made in Elevance Health, a leading US health management organisation, offering steady growth prospects and a growing technology and services platform.
COMMENTARY
Market Commentary
Global share markets rose strongly in September, supported by continued optimism around the long-term growth potential of artificial intelligence (AI). The month saw broad regional participation, although gains were once again concentrated in the Technology sector.
Emerging markets led performance, helped by a sharp rebound in China as investor confidence improved following government support for major technology companies such as Tencent to expand domestic AI investment. This policy encouragement helped offset trade concerns and renewed optimism in the country’s growth outlook.
Developed markets also advanced, underpinned by sustained investment in technology infrastructure and a generally stable economic backdrop. The United States remained a key driver, while Europe and Japan posted moderate gains as business conditions improved across both manufacturing and services sectors.
While market leadership continues to be concentrated in a small number of large technology companies, the broader economic environment remains supportive. Inflation has continued to moderate, labour markets are resilient, and confidence in the global growth outlook has strengthened, providing a constructive backdrop for equity investors heading into the final quarter of the year.
Portfolio Commentary
The Portfolio rose 0.7% in September, supported by select technology and communication services holdings.
The market’s continued focus on a handful of perceived AI leaders has been a persistent theme this year. The Portfolio remains deliberately diversified, investing in high-quality global companies with durable competitive advantages and long-term earnings growth potential. Several holdings, including NVIDIA, Broadcom, ASML, TSMC, Alphabet, Microsoft, and Tencent, are benefiting from the growth of AI. These investments are held for their strong business models and consistent profitability rather than short-term market trends.
This environment has been less favourable for quality-oriented companies, as investors have preferred more speculative or lower-quality areas of the market. The investment team believes these periods are temporary and that maintaining discipline around valuation, sustainable growth, and diversification will continue to support long-term results.
During the month, a new investment was added in Elevance Health, a leading US health management organisation. The position was initiated after share price weakness created an attractive opportunity to invest in a company with a strong brand, disciplined underwriting, and a growing technology and services platform. Its Carelon division, which provides data analytics and operational support to health plans and providers, offers an additional source of growth and potential margin expansion.
Among individual holdings, Synopsys eased after issuing softer guidance, while Tradeweb declined following mixed results in August. By contrast, Alphabet contributed positively after a favourable court ruling improved confidence in its long-term outlook.
The Portfolio remains focused on high-quality global businesses with strong balance sheets and sustainable growth drivers. The investment team continues to apply a disciplined, bottom-up approach designed to deliver consistent income and long-term value across changing market conditions.