The Fund’s portfolio delivered a grossed-up income return of 0.53% during the month and 6.85% over the past 12 months, compared with the benchmark’s grossed-up income returns of 0.81% and 4.74% respectively.
Performance was strong in the Materials sector, while the Energy sector was the primary laggard during the month, weighed down by significant developments in the oil and gas space. Notably, an Abu Dhabi-led consortium, spearheaded by the Abu Dhabi National Oil Company (ADNOC) withdrawing its high-profile takeover bid for Santos (STO). Offsetting this weakness, the Resource sector was buoyed by resilient commodity prices and strong investor demand for safe-haven assets. Gold experienced a robust rally, driven by macroeconomic uncertainties, including persistent inflationary pressures and concerns over global economic growth.
Within the Fund, standout performers included Northern Star (NST) and Evolution Mining (EVN), both of which capitalised on the gold price surge. Additional positive contributions came from select holdings outside the Resource sector, including Challenger (CGF) and AGL Energy (AGL). CGF, a leading provider of annuities and retirement products, saw its share price appreciate despite the absence of significant company-specific news. Similarly, AGL posted gains, as investor confidence improved after being oversold during the August reporting season.
On the downside, the Fund was not immune to the broader market’s challenges. Holdings such as CAR Group (CAR) and Orica (ORI) experienced declines, drifting lower without any significant company-specific developments. These movements appear to reflect broader market sentiment rather than fundamental weaknesses in either company. Woodside Energy Group (WDS) also faced headwinds, declining in sympathy with STO following the collapse of the ADNOC-led takeover bid. The interconnected nature of the Energy sector meant that negative sentiment surrounding STO spilled over to other oil and gas majors, including WDS, despite its solid operational performance and strong balance sheet.
The Australian economy grew by 1.8% in the year to June 2025, up from 1.3% as at March 2025 due mainly to stronger household and government spending. The official cash rate remained steady at 3.60%, with the Reserve Bank of Australia holding off any further cut after a stronger-than-expected inflation result.
The broader market remains susceptible to heightened volatility, with pockets of significant overvaluation persisting across certain sectors and securities. The Fund continues to adopt a disciplined approach, steering clear of overpriced assets and focusing on high-quality, undervalued opportunities with strong fundamentals. By maintaining a diversified portfolio and prioritising income-generating investments, the Fund is strategically positioned to deliver attractive income streams and sustainable long-term returns. This approach also aims to achieve lower volatility than the benchmark and provide investors a resilient investment option 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.
