Innova Active Growth Portfolio (S)

April 2026

Performance Table

1MTH3MTH6MTH1YR3YR (PA)5YR (PA)INCEPTION (PA)
Innova Active Growth Portfolio (S)2.15%0.67%1.25%9.68%8.19%-8.93%
FE Peer Group Growth2.89%-0.27%-0.21%9.06%8.35%5.97%9.23%
Excess Returns-0.74%0.94%1.46%0.62%-0.16%--0.30%

Portfolio Performance

April saw a sharp recovery in markets following the volatility caused by the earlier conflict in the Middle East. Stronger-than-expected company earnings in the US, improving sentiment around a potential ceasefire, and continued optimism surrounding AI supported equity markets, alongside a modest rotation back into AI-related stocks. Ongoing government spending and tax incentives across developed economies continued to support market sentiment, although oil prices remain elevated.

Fixed income markets are not pricing in any further cuts in the US, supported by resilient employment data and gradually rising medium- to long-term inflation expectations. Domestically, the RBA delivered another rate hike in early May and indicated that further increases may still be possible. Elevated oil prices remain an important inflation risk, particularly for economies reliant on energy imports through the Strait of Hormuz.

Innova portfolios delivered mixed results depending on suite and risk profile. Defensive portfolios outperformed as rising government bond yields weighed on fixed-rate bonds, while domestic floating rate credit continued to contribute positively. Within growth portfolios, active positions such as VLUE and hedged exposures supported returns, while low volatility and UK equities detracted from performance. Global equities outperformed domestic equities, returning 4.5% and 2.25% respectively. Government bonds were broadly flat, while domestic floating rate credit returned approximately 0.50%. The AUD/USD rose around 4.5% over the month, materially impacting hedged versus unhedged positions. Gold declined 4.5% over the period.

Asset Allocation Exposure

Breakdown pie chart
Global Shares34.46%
Australian Shares30.95%
Fixed Interest16.99%
Real Assets8.30%
Alternatives6.16%
Cash3.14%

Top Portfolio Holdings

Realindex Wholesale Australian Share
9.19%
Western Asset Wholesale Australian Bond
8.95%
Colonial First State Wholesale Index Global Share
8.92%
Realindex Wholesale Global Share
8.69%
Acadian Australian Equity Long Short
8.26%
DNR Capital Wholesale Australian Equities High Conviction
8.25%
Perpetual Wholesale Diversified Income
8.04%
GQG Partners Global Equity - Hedged
7.90%
Aspect Wholesale Absolute Return
6.16%
Fidelity Global Future Leaders
5.46%

Growth of $100,000 since inception

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Please note Benchmark performance is priced daily.

Market Outlook

Strong enthusiasm around AI has continued to push markets higher, with companies linked to memory chips posting significant gains since the war-related sell-off. Markets such as Korea and Taiwan, which have greater exposure to the AI supply chain, have recovered more strongly than the UK and Europe. Despite this recovery, we believe caution is warranted around the optimism given the uncertainty the war has brought which isn’t being priced in equities.

While higher oil prices could slow global growth modestly, we continue to expect reasonable economic growth alongside inflation remaining higher than pre-pandemic levels. In the US, the Federal Reserve is likely to remain cautious about cutting interest rates given low unemployment and ongoing inflation uncertainty. At the same time, government spending, tax incentives and continued investment in AI infrastructure should continue to support economic growth.

Company earnings have remained resilient throughout the conflict and, if peace talks continue to improve sentiment, we expect the rotation into broader areas of equity markets to persist. Asset valuations generally appear expensive, although segments such as low volatility equities, healthcare and smaller companies may still offer upside given their lower starting valuations. We expect fixed income markets to remain volatile amid heightened macroeconomic uncertainty in 2026, and we remain cautious on highly valued AI-related companies that have experienced large swings in performance during recent market volatility.

Domestically, conditions remain challenging, with persistent inflation, subdued consumer confidence and the risk of further rate hikes still present. Australia’s reliance on energy imports, together with elevated household debt, leaves the economy more exposed to ongoing geopolitical and energy market risks. The AUD/USD remains near a three-year high and may continue to strengthen, supported by interest rate differentials.

Investment Objective

To deliver a total investment return in line with the benchmark, after fees, over a rolling seven year period.

Key Information

Inception14/12/2022
Management Fee0.00%
Maximum Expected Volatility11.00%
Standard Risk MeasureHigh
BenchmarkRBA Cash Rate Target + 3.5%
Model CodeCFSFC009
Investment Timeframe7 years
PlatformCFS FirstChoice

About the Manager

Innova is a boutique portfolio management firm with institutional-grade capabilities that specialises in risk-focused portfolio solutions. Co-founded by Dan Miles and Dinyar Irani in 2010, Innova’s objective is to provide robust investment solutions that work with investor behaviour, rather than against it.

Innova has a comprehensive understanding of investment risk and has developed a proprietary risk management framework based on rigorous academic research to support their investment process. Their quantitative framework acts as the compass, with their experienced investment team determining the best approach to execute this outcome. Innova's systematic approach to portfolio construction has enabled them to navigate global markets successfully, even during challenging market cycles.

Innova has consistently adhered to their investment process across all market regimes. They have rigorously tested their process and analysed hundreds of historical data sources to ensure they always have conviction in their investment decision making. As a result, Innova is able to consistently manage portfolio risk during market downturns and their performance track record is a testament to the effectiveness of their approach.

Important Information

This document has been prepared by Innova Asset Management Pty Ltd (Innova), ABN 99 141 597 104, Corporate Authorised Representative of Innova Investment Management, AFSL 509578 for provision to Australian financial services (AFS) licensees and their representatives, and for other persons who are wholesale clients under section 761G of the Corporations Act.
To the extent that this document may contain financial product advice, it is general advice only as it does not take into account the objectives, financial situation or needs of any particular person. Further, any such general advice does not relate to any particular financial product and is not intended to influence any person in making a decision in relation to a particular financial product. No remuneration (including a commission) or other benefit is received by Innova or its associates in relation to any advice in this document apart from that which it would receive without giving such advice. No recommendation, opinion, offer, solicitation or advertisement to buy or sell any financial products or acquire any services of the type referred to or to adopt any particular investment strategy is made in this document to any person.
All investment involves risks, including possible delays in repayments and loss of income and principal invested. Any discussion of risks contained in this document with respect to any type of product or service should not be considered to be a disclosure of all risks or a complete discussion of the risks involved. Past performance information provided in this document is not indicative of future results and the illustrations are not intended to project or predict future investment returns.
The performance reporting in this document is a representation only. Innova has used a calculation methodology to simulate the performance of the relevant Investment Program since commencement, net of all fees and commissions at the fund/security level, and gross of other fees and commissions. Simulated performance does not reflect the performance of any specific account. Each account will have its own unique performance history, due to factors including varied methods of implementation, fee and tax structures. Therefore, simulated performance may vary significantly compared to that of any specific account. The out of sample backtested performance data has been simulated by Innova and is for illustrative purposed only, and is not representative of any investment or product, Results based on simulated performance results have certain inherent limitations as these results do not represent actual trading. No representation is being made that any account will or is likely to achieve profits or losses similar to those being shown.
Although non-Fund specific information has been prepared from sources believed to be reliable, we offer no guarantees as to its accuracy or completeness. Any performance figures are not promises of future performance and are not guaranteed. Opinions expressed are valid at the date this document was published and may change. All dollars are Australian dollars unless otherwise specified.

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