Innova Active High Growth Portfolio (S)

January 2026

Performance Table

1MTH3MTH6MTH1YR3YR (PA)5YR (PA)INCEPTION (PA)
Innova Active High Growth Portfolio (S)0.88%0.69%3.90%5.99%9.29%-10.21%
FE Peer Group High Growth0.47%-0.09%3.95%7.50%11.09%9.03%12.30%
Excess Returns0.41%0.78%-0.05%-1.51%-1.80%--2.09%

Portfolio Performance

January saw a return of volatility in equity markets, driven largely by a global sell-off in software companies amid concerns that AI could erode market share for software-as-a-service businesses. The US dollar continued to weaken, particularly against the Australian dollar, which was further exacerbated by the RBA’s rate hike in February. Geopolitical risks and tariffs once again dominated headlines; however, ongoing expansive monetary and fiscal support across major economies has helped keep economic fundamentals resilient. The rotation away from growth and technology toward cyclicals, small caps, emerging markets and value has continued into the new year.

In January, Innova portfolios outperformed their benchmarks in traditional strategies but underperformed in risk-defined portfolios. Developed markets declined 2.75% on an unhedged basis, while hedged exposures rose 1.69%, highlighting the importance of currency hedging. Domestic equities gained 1.71%, and emerging markets were broadly flat.

Global value, emerging markets and small caps contributed positively to global equity performance, while allocations to low volatility detracted. Unhedged global positions were also a headwind, as AUD/USD rose 4.3%. The strongest contributions came from active alpha in Australian equities and overweight positions in domestic floating-rate credit. Alternatives provided effective downside protection, and precious metals extended their strong rally before a sharp pullback in early February.

Asset Allocation Exposure

Breakdown pie chart
Global Shares41.27%
Australian Shares36.23%
Real Assets8.90%
Alternatives6.40%
Fixed Interest4.48%
Cash2.72%

Top Portfolio Holdings

DNR Capital Wholesale Australian Equities High Conviction
19.19%
Realindex Wholesale Australian Share
13.04%
Colonial First State Wholesale Index Global Share
11.07%
GQG Partners Global Equity - Hedged
10.11%
Realindex Wholesale Global Share
9.81%
Aspect Wholesale Absolute Return
6.40%
Fidelity Global Future Leaders
6.07%
Resolution Capital Wholesale Global Property Securities
5.74%
Fidelity Wholesale Asia
4.21%
CFS Index Australian Share
4.00%

Growth of $100,000 since inception

ResetPerformance line chart
3YR1YR
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Please note Benchmark performance is priced daily.

Market Outlook

We entered 2026 with a positive outlook for growth and liquidity, expecting a rotation away from expensive growth stocks toward more cyclical and under-loved areas. That has largely played out, with energy, small caps and materials outperforming technology and the broader index.

Continued monetary and fiscal support should help these cyclical sectors re-rate, particularly given the still-wide valuation gap to the broader market. Within technology, software has sold off materially, while hardware and semiconductors have remained resilient.

Geopolitical tensions around Greenland and ongoing tariff uncertainty have pushed international institutional investors, including pension funds, toward more hedged exposures - reflected in fund flows and recent US dollar weakness.

The appointment of Kevin Warsh as Federal Reserve Chair, viewed as more hawkish, initially created policy uncertainty despite economic data supporting further rate cuts. US growth forecasts have improved over the past two months, and manufacturing data has strengthened.

A tail risk remains in Japan, where the yen has weakened even as long-term yields reach record highs. Overall, credit spreads are tight, and equity valuations remain elevated, though selective opportunities exist. Despite high asset prices, the broader economic backdrop continues to support risk assets.

Investment Objective

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

Key Information

Inception14/12/2022
Management Fee0.00%
Maximum Expected Volatility13.00%
Standard Risk MeasureHigh
BenchmarkRBA Cash Rate Target + 5.0%
Model CodeCFSFC010
Investment Timeframe8 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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