2025 was a solid year for the Endeavor portfolios. Growth Equities returned 17.0%, Balanced Equities 16.1% and High Conviction delivered 25.3% for the calendar year, compared to the All Ordinaries Accumulation Index return of 11.0%.
That momentum has continued into FY26. Over the first six months, Growth Equities has returned 14.2% compared to the benchmark’s 4.4% and High Conviction is up 21.4%. These outcomes reflect both stock selection and our willingness to deploy capital when volatility creates opportunity.
December itself was more mixed, with equity markets digesting higher bond yields and renewed debate around policy settings. Despite this, our portfolios were resilient and we continued to see encouraging underlying fundamentals across many of our holdings.
Market Context
In Australia, the macro backdrop remains constructive. Inflation is proving sticky and the RBA continues to talk tough. We believe policy can do much of the required work without the need for materially higher rates. Consumer sentiment remains subdued, but activity indicators are holding up better than expected.
Importantly, we continue to see a favourable setup for commodities. Supply discipline, improving demand visibility and the need for electrification and decarbonisation are supportive for copper and related materials. This remains a key theme across the portfolios.
Globally, economic momentum in the US remains firm. Policy uncertainty has increased, but inflation is no longer a binding constraint on rate cuts. Whether easing occurs sooner or later, the direction of travel is clear. At the same time, the adoption of AI continues to drive productivity improvements and cost reductions at the company level, which we see reflected increasingly in earnings delivery rather than just narrative.
December Newsletters
Positioning and outlook
We used periods of volatility to continue refining the portfolios. Cash levels are now lower, reflecting the number of opportunities we are seeing across quality industrials and selective resources exposures.
We enter 2026 well positioned. Balance sheets are strong, earnings trends remain intact, and our portfolios are tilted toward businesses with structural growth drivers and improving industry fundamentals. Volatility is likely to persist, but we remain confident in our approach and our ability to continue delivering attractive long term outcomes for clients.
The Endeavor Team
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*Note: Performance of the strategy group is representative of individual client portfolios, although performance can differ due to inherent differences between clients portfolios such as initial entry timing, legacy holdings or requested stock exclusions. Performance measured is after fees, taxes and franking credits. Monthly performance figures include an accrual for fees charged quarterly.
