Rotation is the name of the game in the November edition of Portfolio Perspectives.
Portfolio Perspective – A Unified Investment View
We are pleased to present this edition of Portfolio Perspectives as a significant milestone in the evolution of the Evidentia Group. The unification of Evidentia Private, Lonsec Investment Solutions, and Implemented Portfolios under a single ownership structure has brought with it the opportunity- and the responsibility – to align our investment thinking across the enterprise.
For the 19 investment professionals who contribute to our collective views, the process of convergence has been both collaborative and constructive. Encouragingly, we found far more common ground than difference, allowing a unified investment philosophy to emerge naturally and with clarity.
While the views expressed in Portfolio Perspectives represent the Evidentia Group “house view,” they are intended as the foundation for further refinement.
Each client group’s unique objectives and circumstances guide how these ideas are tailored and implemented across the solutions we deliver.
— The Evidentia Group Investment Team
Key Messages for Investors
- Australia Large Caps: Moved to mildly Underweight due to limited profit growth from Banks and Resources and stretched valuations elsewhere, making global alternatives more attractive.
- Emerging Markets: Shifted to mildly Overweight as profit forecasts stabilise and valuations sit at multidecade lows, with expected double-digit earnings growth driven by improving conditions in China, South Korea, and India.
- Listed Infrastructure: Increased to mildly Overweight given attractive valuations, stable dividend yields, and support from potential rate cuts, offering defensive qualities amid market volatility.
- AI-driven enthusiasm is boosting valuations, but genuine productivity gains are also becoming evident; early-career workers face displacement as automation advances, echoing past technological transitions.
- US Government Shutdown: A prolonged shutdown could meaningfully slow near-term US growth, costing about US$15 billion per week, though the overall impact is expected to be temporary if resolved promptly.