May proved to be a challenging month for active Australian equity managers despite broader market resilience. The All Ordinaries Accumulation Index increased by 1.2%, while Endeavor’s Growth Equities, Balanced Equities and High Conviction portfolios returned -0.8%, -0.4% and -2.8% respectively. The Enhanced Yield strategy delivered a positive return of +0.53% for the month.
Over the rolling 12 months, the Growth Equities has returned +10.0% net of fees, Balanced Equities +16.5%, High Conviction +2.3% and Enhanced Yield +5.65%. The corresponding benchmark return was +6.8%, highlighting the value of our disciplined and focus on quality businesses over the long term.
Market Context
Global markets remained resilient during May, supported by stronger than expected corporate earnings and ongoing enthusiasm surrounding AI related investment. US equities continued to perform strongly, with investors increasingly focused on the significant capital spending being directed towards data centres, semiconductors and digital infrastructure.
At the same time, geopolitical tensions in the Middle East kept energy markets elevated, contributing to persistent inflation pressures globally. In Australia, the Reserve Bank increased the cash rate to 4.35%, highlighting that inflation remains above its target range and that policymakers remain cautious on the outlook.
May 2026 Newsletters:
Positioning and Outlook
Across our portfolios, we remain significantly underweight the major banks and own none of the big four in our Growth and High Conviction strategies. We continue to favour businesses with strong competitive positions, robust balance sheets and the ability to deliver sustainable earnings growth through a range of economic conditions. Recent market volatility has created opportunities to selectively deploy capital into high quality businesses trading at attractive valuations. While the near term outlook remains uncertain given geopolitical developments and elevated inflation, we believe a disciplined focus on fundamentals will continue to be the key driver of long term investment 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.
