Wealth Builder Portfolio
Portfolio Commentary
Wealth Builder gave back 0.97% after fees. Clinical-stage biotechnology, silver and base metals exploration, US large-cap technology and uranium delivered handsomely. Semiconductors, rare earths, lithium, gold developers and diversified natural resources pulled the other way.
South Korea was the month’s most telling market. It fell by roughly a third, and around forty per cent from its June high — a market dominated by memory chip manufacturers. Semiconductor shares globally moved the same way, together and regardless of quality, which is the signature of forced position unwinding. Credit markets remained calm throughout, and the software and platform businesses we own reported strongly and were rewarded. We sold Japanese electronics and Chinese technology into strength, and added to global software, uranium, rare earths and clean energy.
We had looked for gold and resources to recover once the June tax-loss selling cleared. July proved slower, though precious metals found strong support in early August instead and August is delivering strongly so far. Wealth Builder pursues the strongest long-term growth we can find, and the value currently in front of us is exceptional. We are expecting a strong end to calendar 2026 as pricing catches up with favourable fundamentals in our portfolio.
Market Commentary
July was shaped by a fresh escalation in the Middle East, as renewed hostilities between the United States and Iran early in the month reversed a slide in oil prices and unsettled risk sentiment. The Reserve Bank of Australia did not meet on its six-weekly schedule, leaving the cash rate at 4.35 per cent after three increases in 2026 took it from 3.60 per cent at the start of the year through 3.85 per cent in February, 4.10 per cent in March and 4.35 per cent in May. Domestic bond yields drifted higher in sympathy with offshore moves before easing into month-end, with the 10-year Australian government bond yield finishing around 11 basis points above its year-prior comparison point after a late pullback to near 4.93 per cent. Cash, as measured by the Bloomberg AusBond Bank 0+Y index, added 0.38 per cent.
The 29 July inflation read provided late-month relief: headline CPI eased to 3.8 per cent year-on-year in June from 4.0 per cent in May, though the RBA's trimmed mean held at 3.6 per cent, unchanged and still above the 2-3 per cent target band. That took an August rise off market pricing without bringing cuts forward. Unemployment rose 0.1 percentage point to 4.4 per cent in June, with 12,700 more people unemployed; national dwelling prices fell 0.4 per cent, the largest monthly decline since December 2022; and NAB's business confidence index held steady at 3.
Australian equities still advanced, with the S&P/ASX 300 returning 2.13 per cent on firmer commodity prices and resilient financials. Global listed real assets, as measured by the FTSE EPRA Nareit Developed index, added 1.27 per cent as investors rotated from expensive technology toward defensive, income-generating sectors.
Asset Allocation
| Asset Class | Current | Neutral | Variation |
|---|---|---|---|
| Australian Shares | 40.4% | 30.0% | 10.4% |
| International Shares | 36.1% | 25.0% | 11.1% |
| Fixed Interest | 1.7% | 0.0% | 1.7% |
| Alternatives | 19.7% | 20.0% | -0.3% |
| Cash | 2.2% | 0.0% | 2.2% |
Manager Profile
Dynamic Asset Consulting builds and manages a range of Goals Based Portfolios that are designed to match up with specific strategic investment outcomes. Different portfolios can be blended together to construct an overall portfolio targeting numerous outcomes. The portfolios target is real rates of return, over inflation, with a focus on preservation of capital.
Investment Objective
| Name | Info |
|---|---|
| Target return | CPI + 5.0% |
| Timeframe | Minimum 7 years |
| Defensive / Growth | 2% / 98% |
| Min Investment | $25,000 |
| Redemption Liquidity | Approx. 1 – 2 weeks, subject to investment liquidity |
Investment Strategy
The portfolio maintains a flexible asset allocation range so that capital may be dynamically allocated to help achieve the targeted return within the risk tolerances, depending on market conditions at the time. Once the appropriate asset allocation is decided, it is implemented by selecting those investments and managers which are considered best placed to produce the targeted risk-adjusted returns, when combined together as an overall portfolio, across the relevant timeframe.
Portfolio Analysis
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