June brought a mixed finish to FY26 across our strategies. The All Ordinaries Accumulation Index rose 0.4% in June, while Endeavor’s Balanced Equities portfolio returned +0.6% and the Enhanced Yield strategy delivered +1.21%. Growth Equities returned -2.6% and High Conviction -3.7%, with both caught in the month’s sharp rotation out of growth and resource names.
Over the rolling 12 months, Growth Equities has returned +4.2% net of fees, Balanced Equities +13.9%, High Conviction -4.2% and Enhanced Yield +6.25%, against a more subdued year with the benchmark returning +5.7%. It was a tougher year for our more concentrated strategies, but since inception Growth has returned 396%, Balanced 383% and High Conviction 338% against 263% for the index, underlining the value of our disciplined focus on quality businesses over the long term.
Market Context
June was a rotation month on the ASX. Healthcare extended its strong run and banks caught the year end flows, while resources did the damage as iron ore broke below US$100 a tonne and BHP reversed sharply off its record high. Energy stocks were also hit late in the month as Brent crude fell 21%, its worst month since March 2020.
The ASX 200 added 0.6% to finish FY26 up 3%.The domestic economy continues to soften. The RBA held the cash rate at 4.35% after three consecutive hikes, with trimmed mean inflation still elevated at 3.6% and March quarter GDP growth slowing to 0.3%. The Australian dollar fell 3.8% to 0.69, a tailwind for offshore earners in the portfolios.
June 2026 Newsletters:
Positioning and Outlook
Our portfolios remain concentrated in quality businesses with strong competitive positions, robust balance sheets and the ability to grow earnings through a range of economic conditions. We made selective changes during the month, consistent with our long term approach.
The second half brings two tests: the RBA’s August 11 meeting, where markets price one more hike, and the August reporting season. The fall in oil takes real pressure off inflation and suggests the hiking cycle is closer to its end than its beginning. Reporting season will reward companies with pricing power and resilient earnings, which is exactly where our portfolios are positioned.
We see the pullback in resources as opportunity rather than risk, and remain confident that a disciplined focus on fundamentals will continue to drive long term returns. Any questions, please give us a call.
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.
