The Fund’s portfolio delivered a grossed-up income return of 0.53% during the month and 6.63% over the past 12 months, compared with the Benchmark’s grossed-up income returns of 0.60% and 4.42%, respectively.
The broader Australian stock market advanced overall in August, but headline gains masked significant sector dispersion. The Health Care and Materials sectors led the market higher, buoyed by a robust reporting season and strong corporate earnings updates. Conversely, the Real Estate and Industrials sectors faced heavy selling pressure. Sticky inflation and the prospect of domestic interest rates staying higher for longer triggered a sharp rotation away from rate-sensitive real estate assets and infrastructure plays.
Within the Fund, the strongest contributors were Ansell Limited (ANN) and Ramsay Health Care Limited (RHC). The key detractors were Charter Hall Group (CHC) and Aurizon Holdings Limited (AZJ).
ANN contributed significantly to performance as its full-year results confirmed a major volume recovery, following the normalisation of post-pandemic customer inventory backlogs, driving a 14.1% increase in adjusted EBIT. RHC was another standout performer after reporting a 22.9% increase in underlying net profit, supported by strong momentum across its Australian operations and a notable operational recovery within its UK acute business.
Conversely, CHC detracted from performance despite delivering a 26.8% increase in full-year operating earnings and securing record gross equity inflows of A$6.7 billion across its A$94.3 billion platform. AZJ was a notable drag due to a conservative 2027 financial year outlook guiding for flat EBITDA, which completely overshadowed a 24% surge in underlying net profit and a 46% increase in full-year dividend payments.
In August 2026, Australia’s economy remained resilient, but inflation stayed above the RBA’s target range. Annual CPI eased to 3.5% in July, from 3.8% in June. Housing costs continued to be the largest contributor to inflation. The RBA left the cash rate unchanged at 4.35% at its August meeting, citing persistent inflation pressures despite signs of moderating demand.
Looking ahead, the broader market remains vulnerable to elevated volatility, particularly as domestic macroeconomic data shifts rate expectations. The Fund continues to apply a disciplined investment approach, focusing on high-quality, undervalued businesses with strong fundamentals. By maintaining a diversified portfolio and emphasising income-generating investments, the Fund is positioned to deliver attractive income and sustainable long-term returns, while targeting lower volatility than the Benchmark in an uncertain market environment.
DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP) (ABN 56 080 277 998), a financial institution listed on the ASX (APL). AGP IM is the Responsible Entity and Vertium Asset Management Pty Ltd is the investment manager of Switzer Dividend Growth Fund - Active ETF (ARSN 614 066 849) (the Fund).
Any references to ‘We’, ‘Our’, ‘Us’, or the ‘Team’ used in the context of the portfolio commentary, is in reference to Vertium Asset Management Pty Ltd, as investment manager for the Fund.
This material has been prepared for general information only. It does not contain investment recommendations nor provide investment advice. It does not take into account the objectives, financial situation or needs of any particular individual. Investors must, before acting on this material, consider the appropriateness of the material.
Neither AGP IM, AGP, their related bodies corporate, entities, directors or officers guarantees the performance of, or the timing or amount of repayment of capital or income invested in the Fund or that the Fund will achieve its investment objectives. Past performance is not indicative of future performance.
Any economic or market forecasts are not guaranteed. Any references to particular securities or sectors are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities or sectors and no warranty or guarantee is provided that the positions will remain within the portfolio of the Fund.
Investors should seek professional investment, financial or other advice to assist the investor determine the individual tolerance to risk and needs to attain a particular return on investment. In no way should the investor rely on information contained in this material.
Investors should read the Fund’s Product Disclosure Statement (PDS) and consider any relevant offer document in full before making a decision to invest in the Fund. The Fund’s Target Market Determination and other relevant information can be obtained by visiting www.associateglobal.com.
