The ASX All Ordinaries Accumulation Index declined 0.5% in September. The Growth, Balanced and High Conviction Portfolios returned +0.7%, -0.8% and +2.5% respectively. The Enhanced Yield Portfolio returned +0.31% for the month versus the RBA Cash Rate +0.30%. This brings the quarterly returns to the end of September to +9.8%, +7.7% and +14.7%, respectively, compared to the ASX All Ords +5.3%. The quarter also marked 15 years of performance for the Growth, Balanced and High Conviction Portfolios. Over that period, the portfolios have compounded to cumulative returns of +423%, +357% and +424% (after fees) against +261% for the benchmark. We believe this outcome reflects a consistent focus on high quality businesses, disciplined portfolio construction and a long term investment horizon.
Macro Backdrop
Australian equities held near record levels in September, with small caps the best performers. In the US, major indices pushed to fresh highs following the Fed’s rate cut that extended the rally. Domestically, labour market conditions softened as participation eased and full-time employment fell. Inflation surprised to the upside, though the print was skewed by one offs and volatile components. Late in the month, the RBA kept the cash rate at 3.60% and adopted a hawkish tone, highlighting the lagged effects of prior easing and lingering global uncertainties; the hurdle for additional cuts has risen, but policy remains data dependent.
Materials was the only ASX sector to finish September in positive territory, rising 4.6%. Our small cap resources exposures were standouts, with Firefly (FFM), Andean (ASL) and Ramelius (RMS) benefiting from firmer commodity prices. We continue to see Materials as a relative bright spot, underpinned by resilient demand and pro growth policy settings that support core commodities. After trailing large caps for much of recent years, small caps have led since April 2025. Our Growth and High Conviction portfolios are positively exposed to this rotation, and we expect the trend to persist as global cash rates continue to decline.
September Newsletters
Outlook
With high cash levels and portfolios tilted toward quality companies in sectors benefiting from structural change, we are well positioned to take advantage of opportunities. We continue to deploy a disciplined, research led process on clients’ behalf, focusing on clear fundamentals and management execution. As long term investors, our aim is to stay the course as earnings compound and intrinsic value grows. 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.
