Aussie Equities: Opportunities ahead
Our view on Australian Equities: Now and over the long-term
Nathan Parkin, Head of Equities: Markets move in cycles, and right now, some parts of the market are getting a lot of attention. Resources, commodities, and even still gold – these sectors have done well recently. So, it’s a good time, as investors to ask: what does this mean for us? And where will things likely head from here?
When we invest, we’re not just focused on what’s popular in the latest quarter. Our intention typically is to own businesses for 3 to 5 years, based on what we think they’re worth over the medium term.
We spend a lot of time developing a clear view of value in every company we own.
Markets move above and below that value - as sentiment changes, and that creates opportunities to buy and sell through the cycles.
Our conviction in ethical investing is fixed and enduring. And we’re upfront about this: sometimes it helps returns in the short term, and sometimes it doesn’t.
But we don’t bend our ethics to suit where the market happens to be. We exclude companies we assess to be environmentally damaging – and that hasn’t changed.
We exclude companies we assess to be environmentally damaging – and that hasn’t changed.
Stock prices can rise just because an industry is popular. That doesn’t change the potential long-term risks or impacts of the activity the company is involved in.
If you look at long-term returns in sectors like healthcare and technology, these areas have consistently outperformed materials over time. That’s not about a single year, it’s what shows up across full market cycles.
We’ve been managing active Australian equities for more than 30 years under the same Ethical Charter. Our charter has led us towards industries we believe have better future growth potential and more resilient business models over time.
Our portfolios look different to the market - deliberately. We are active investors, guided by conviction and valuation, not the index. Today, that often means finding value away from the most crowded parts of the market. In small and mid-cap stocks that are growing faster and trading below our internal valuations.
So when markets feel noisy or uncomfortable, our message is simple: we know what we own, and why we own it. And history shows us that staying disciplined through market cycles matters.