Elston Australian Equities Income Model Portfolio
Features
Information
Fees
Platform Availability
Hub24, Netwealth, MyNorth, CFS Edge.
Investment Objective
The aim of the portfolio is to generate income above the benchmark over rolling five-year periods, before fees.
Benchmark
S&P ASX 100 Accumulation Index.
Investment Strategy
The portfolio is actively managed with a defined income tilt, prioritising higher-income-generating equities while maintaining exposure to long-term capital growth. In general, the portfolio will have a long-term average exposure of around 97% in growth assets and 3% in defensive assets, however the allocations will be actively managed within the allowable ranges depending on market conditions.
Research House Ratings
RatingPortfolio Managers
Cumulative Performance
| 1 Mo | 3 Mo | 6 Mo | 1 Yr | 3 Yr (p.a.) | 5 Yr (p.a.) | 7 Yr (p.a.) | 10 Yr (p.a.) | Inception (p.a.) | |
|---|---|---|---|---|---|---|---|---|---|
| Elston Australian Equities Income Model Portfolio | -0.86% | 4.18% | 9.79% | 11.98% | - | - | - | - | 15.04% |
| Benchmark | -2.43% | 1.48% | 5.78% | 3.56% | - | - | - | - | 10.74% |
Investments can go up and down. Past performance is not a reliable indicator of future performance.
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Sector Allocation as at 30/9/2026
| Health Care | 11.2% | |
| Financials | 17.0% | |
| Materials | 18.1% | |
| Consumer Discretionary | 9.6% | |
| Industrials | 7.1% | |
| Energy | 7.3% | |
| Consumer Staples | 5.6% | |
| Communications | 9.9% | |
| Cash | 3.0% | |
| Real Estate | 6.5% | |
| Utilities | 4.6% |
Actual Sector Versus Benchmark as at 30/9/2026
Top 10 Holdings as at 30/09/2026
Commentary on Performance
Market Review:
Equity markets delivered positive returns during the third quarter, while bonds and real assets faced pressure from rising bond yields driven by sticky inflation and Middle East tensions pushing up energy prices.
The corporate reporting season highlighted a divergence between global and domestic markets. Internationally—particularly in the US—equities benefited from robust earnings growth powered by massive AI infrastructure spending. In Australia, while companies remain in solid shape, earnings growth among larger companies was more subdued, although sectors with more international exposure like Healthcare, Materials, and IT performed well.
Portfolio Performance:
The portfolio has outperformed its benchmark over the past 12 months whiles also delivering income significantly above benchmark. Most asset classes have contributed to the outperformance, with Australian equities the standout, driven by strong performance from AMP, CSL, Rio Tinto, and not owning CBA. The Australian equities portfolio has generated over ~7% dividend income (inc franking) over the past 12 months.
Portfolio Changes:
There were several changes to the portfolio this quarter. AGL, Cleanaway and Qantas and were added to the portfolio while as part of the dividend rotation process, we exited REITs and Infrastructure companies post their 30 June dividend and increased exposure to Suncorp, Santos and ResMed.
Outlook:
While equity markets remain attractive, supported by positive earnings growth across a broad range of regions. However, the market’s reliance on AI-related investment and earnings creates a potential source of risk, particularly as higher bond yields and debt-funded capital expenditure place greater scrutiny on future returns.
We remain diversified across the Australian equities universe, given index concentration in banks and miners limiting earnings growth and income. Our portfolio is grounded in strong fundamentals, with cheaper valuations and higher income than the index.
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