Elston Australian Large Companies Model Portfolio
Features
Information
Cash 3%
(at the time of inevstment).
Fees
Platform Availability
HUB24, Netwealth, MyNorth, BT Panorama, Macquarie Wrap, Praemium, CFS.
Investment Objective
The portfolio aims to outperform the S&P/ASX 100 Accumulation Index (after fees) over rolling five-year periods.
Benchmark
S&P ASX 100 Accumulation Index.
Investment Strategy
This is an actively managed portfolio of predominantly ASX listed businesses. The strategy's investment universe is all businesses within the S&P/ASX 100 index (at the time of investment), with a maximum of 25% of the portfolio invested in companies outside the S&P/ASX 50 index. The portfolio holds between 20 and 35 holdings and can hold up to 10 per cent in cash; however, the portfolio is expected to be fully invested a majority of the time.
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.) | |
|---|---|---|---|---|---|---|---|---|---|
| Australian Large Companies Model Portfolio | -3.03% | 4.26% | 11.86% | 1.87% | 3.63% | 3.71% | 5.45% | 7.49% | 8.92% |
| Benchmark | -2.43% | 1.48% | 5.78% | 3.56% | 11.44% | 8.16% | 8.14% | 9.35% | 9.60% |
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 | 19.0% | |
| Financials | 17.2% | |
| Materials | 19.0% | |
| Consumer Discretionary | 12.4% | |
| Industrials | 2.2% | |
| Energy | 4.5% | |
| Consumer Staples | 8.1% | |
| Communications | 8.9% | |
| Cash | 3.0% | |
| Information Technology | 5.7% |
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:
While the portfolio underperformed its benchmark over the past 12 months, a shift in market sentiment continues with the portfolio outperforming the benchmark over the quarter. During the quarter, stock selection with Financials (AMP not owning CBA) and an overweight to Healthcare (CSL, Ramsay, and Cochlear) drove the bulk of the outperformance. Positive contributors over the 12 months include AMP, Rio Tinto, Ramsay, James Hardie, and BlueScope Steel.
Portfolio Changes:
We made several changes to the portfolio this quarter, JB Hi-Fi and Light & Wonder were added funded by exiting Brambles and trimming Amcor and Car Group.
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 from the big 4 banks limiting earnings growth and income. Consequently, we are retaining quality exposures with ‘earnings stability’, which are often found in sectors such as Healthcare and Consumer Staples. The portfolio is already meaningfully overweight these sectors.
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