Innova High Growth Model

June 2026

Performance Table

1MTH3MTH6MTH1YR3YR (PA)5YR (PA)INCEPTION (PA)
Innova High Growth Model2.21%8.38%5.00%11.41%10.46%6.87%7.74%
FE Peer Group High Growth1.41%7.82%4.39%10.04%11.35%7.43%8.16%
Excess Returns0.80%0.56%0.61%1.37%-0.89%-0.56%-0.42%

Portfolio Performance

Performance was mixed across asset classes over June, with precious metals the standout detractors. Real assets were supported as sovereign yields declined after the mid-month US-Iran agreement pushed oil down roughly 20%, easing the rate pressure on listed property.

In Australia, the data-centre thematic remained intact even as leadership rotated, with the semiconductor complex posting a third consecutive month of gains while the hyperscalers funding the AI buildout faced pressure, a divergence worth monitoring for digital infrastructure landlords.

Global equities were mixed at the headline level. The MSCI World Index fell 0.7% in USD as a pullback in mega-cap tech offset strength in cyclical/value-oriented areas, and the broadening we have been waiting for finally showed up: the Russell 2000 rose 3.7%, capping its best first half since 1991, the S&P 500 Equal Weight Index advanced 2.4% against a 0.7% decline for the cap-weighted benchmark, and value beat growth by a wide margin.Europe outperformed as lower oil eased stagflation concerns. Emerging markets gave back a little, down 1.4% in US dollars, though still up 24% for the quarter, their strongest quarter since 2009.

In fixed income, floating-rate positioning continued to perform. The Fed held rates at 3.50-3.75% but the June dot plot revealed hawkishness, with 9 of 18 officials pencilling in at least one hike this year and a 25bp move fully priced by October, while the ECB delivered its first hike since 2023 and the RBA paused after three consecutive increases, retaining a tightening bias. That flows through to higher coupons on floaters with minimal capital impact. Duration-sensitive benchmarks were more subdued, with the Bloomberg Global Treasury Index returning 0.4% hedged and the Global Aggregate Corporate Index 0.3%. Our caution on adding credit risk is unchanged - investment grade and high yield spreads widened over the month yet remain historically tight, so the asymmetry still argues against reaching for spread here.

Asset Allocation Exposure

Breakdown pie chart
Global Shares46.16%
Australian Shares34.67%
Real Assets13.15%
Fixed Interest3.89%
Cash2.13%

Top Portfolio Holdings

Schroders Equity Opportunities
11.09%
DNR Capital Aus Eq High Conviction
10.70%
Capital Group New Perspective Fund Hedged (AU)
9.37%
Franklin Global Systematic Equity Fund
8.37%
Invesco Wholesale Australian Share Fund
8.08%
VanEck Vectors MSCI International Value ETF
7.87%
AB Global Strategic Core Equities Fund
7.30%
Macquarie True Index Global Infrastructure Securities Fund
6.94%
Quay Global Real Estate Fund - Hedged
6.22%
VanEck MSCI International Small Companies Quality (AUD Hedged) ETF
4.95%

Growth of $100,000 since inception

ResetPerformance line chart
5YR3YR1YR
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Market Outlook

Looking ahead, the market backdrop remains constructive but increasingly dependent on earnings fundamentals. The US economy enters the quarter with solid momentum, supported by resilient consumer spending, stable labour conditions and continued business investment. AI remains a key structural growth driver, with significant capital expenditure from major technology companies expanding beyond traditional technology sectors into data centres, energy infrastructure and industrial capacity. This investment cycle has helped support productivity expectations and contributed to continued earnings strength, with the S&P 500 delivering consecutive quarters of earnings beats and expectations for further double-digit profit growth.

Markets enter Q3 2026 with investors balancing ongoing growth opportunities against rising valuation, concentration and macro risks. The focus is shifting from whether AI can drive growth to whether current expectations have become too high. Investors may need to maintain exposure to long-term growth themes while reducing reliance on a narrow group of mega-cap technology companies.

AI remains a structural opportunity, but returns may become more selective as markets demand evidence of monetisation, profitability and returns on large capital investments. Elevated valuations and higher funding costs create less room for disappointment, increasing the importance of earnings quality and valuation discipline.

Investment Objective

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

Key Information

Inception30/11/2015
Management Fee0.36%
Maximum Expected Volatility13.00%
Standard Risk MeasureHigh
BenchmarkRBA Cash Rate Target + 5.0%
Model CodeMACC000036
Investment Timeframe8 years
PlatformNetwealth

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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