February was a challenging month for global equities, with increased volatility as markets adjusted to lower growth expectations and changing government policies. While our portfolios experienced declines, we remain focused on managing risk, protecting capital, and positioning for future opportunities.
Market Overview and Performance
- ASX All Ordinaries Accumulation Index
- -4.4% for the month
- +9.3% for the past year
- +8.9% for the past 14 years
- Growth Equities Portfolio
- -5.5% for the month
- +9.5% for the past year
- +10.9% p.a. for the past 14 years
- High Conviction Portfolio
- -3.3% for the month
- +17.8% for the past year
- +10.7% p.a. for the past 14 years
- Balanced Equities Portfolio
- -5.4% for the month
- +7.0% for the past year
- +10.0 p.a. for the past 14 years
- Enhanced Yield Portfolio
- +0.59% for the month
- +7.04% for the past year
Portfolio Positioning and Key Updates
We have taken proactive steps to reduce exposure to businesses vulnerable to economic slowdowns while consolidating into high quality companies with strong fundamentals. We have also maintained a relatively high cash weighting, providing flexibility to take advantage of opportunities, as we have during previous market downturns. Despite near term weakness, we selectively added to key positions.
February Newsletter
Outlook
In the US, government policies have increased volatility with investors moving to the sidelines. While these policies are likely to drive a more productive economy in the long run, they have weighed on short term growth expectations. Positively, the volatility has resulted in lower bond yields and increased rate cut expectations, which will ultimately support equity valuations. Australia remains in a reasonable position, with stable growth, a resilient labour market, and rate cuts underway. Additionally, Chinese economic indicators have turned positive, which historically benefits the Australian economy. While we remain cautious, we see this period as an opportunity to position for a recovery, as we have successfully done in past market pullbacks. Thank you for your continued trust in our team. If you have any questions regarding our strategy or portfolio positioning, please feel free to reach out.
Regards
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.
