The Fund’s portfolio delivered a grossed-up income return of 0.53% during the month and 8.02% over the past 12 months, compared with the Benchmark’s grossed-up income returns of 0.55% and 4.54%, respectively.
May was a month of shifting dynamics across global and domestic markets. While global equity performance reflected mixed macroeconomic indicators, the local market experienced distinct sector dispersion. Domestically, Materials and Resources found strong support, driven by a rally in industrial metals. The ASX 100 finished the month slightly higher, navigating the Strait of Hormuz crisis volatility, shifting interest rate expectations and major company updates that kept a lid on broader index gains.
Within the Fund, the strongest contributors were BHP Group (BHP) and Sandfire Resources (SFR), both of which benefited directly from significant structural strength in the copper price during the month. Tight global supply dynamics and robust demand expectations fuelled an upward trajectory in base metals, enhancing the earnings outlook for diversified majors and pure-play copper producers alike. BHP and SFR have both demonstrated strong operating leverage to these firming commodity prices, providing a reliable buffer to the broader portfolio.
Conversely, the key detractors for the period were ASX Limited (ASX) and Brambles (BXB). ASX pulled back in May after its prior volume-driven strength as the market digested unexpected cost increases in the business. BXB also weighed on performance when it revised its profit guidance due to operational bottlenecks and repair capacity constraints within its US subcontractor network.
Australia’s economy remains resilient but faces persistent inflation pressures. The Reserve Bank of Australia raised the cash rate by 25 basis points to 4.35% on 5 May – its third consecutive increase, citing elevated inflation, capacity constraints and higher fuel prices linked to global energy disruptions. Annual CPI inflation was 4.6% in the March 2026 quarter, while monthly data released in May showed inflation easing slightly to 4.2% in April.
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.
