The Fund’s portfolio delivered a grossed-up income return of 0.53% during the month and 8.13% over the past 12 months, compared with the Benchmark’s grossed-up income returns of 0.01% and 4.69%, respectively.
April was a month of two halves. Early weakness driven by the Strait of Hormuz conflict gave way to a sharp global recovery as peace negotiations generated optimism. The S&P 500 posted one of its strongest monthly gains since the COVID-19 pandemic. Domestically, the ASX 200 surrendered those gains in the final week as renewed inflation and Reserve Bank of Australia (RBA) rate concerns weighed. Health Care was the underperformer in the local market, following Cochlear’s major earnings downgrade, while Financials and Consumer Staples also lagged.
Within the Fund, the strongest contributors were ASX Limited (ASX) and BlueScope Steel. ASX benefited from elevated trading volumes driven by geopolitical volatility, with interest rate derivatives reaching record quarterly levels. The company also benefited from the appointment of an interim CEO. The market responded positively to the leadership announcement as the Board completes its permanent search. BlueScope Steel, meanwhile, contributed positively as the US industrial cycle showed signs of turning, supporting a recovery in steel spreads. BlueScope Steel’s Ohio minimill, North Star, has significant operating leverage to firming US hot-rolled coil prices.
The Fund’s principal detractor in the period was Woolworths Group, which fell after its third-quarter FY26 trading update as investors focused on cost pressures and Australian Competition & Consumer Commission (ACCC) proceedings, despite solid underlying sales growth.
The Fund also benefited from its zero-weight position in Cochlear, which suffered a sharp single-day decline following a significant earnings downgrade. The company reduced its FY26 profit guidance by approximately 30%, sending shares down around 37% on the day.
Australian inflation, as measured by the Consumer Price Index rose 4.6% in the 12 months to March 2026, driven by fuel, housing and transport costs. The cash rate remained at 4.10% through April (with a 0.25% increase to 4.35% following the RBA’s meeting on 5 May). The labour market stayed tight, with unemployment steady at 4.3%.
Looking ahead, the broader market remains vulnerable to elevated volatility, with pockets of significant overvaluation persisting across certain sectors and securities. 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.
