In May 2026, Switzer featured our global equities fund in an analysis exploring why the ASX200 has fallen over 1 per cent year-to-date whilst US markets surge ahead, with the S&P500 up 8.5 per cent and NASDAQ climbing nearly 14 per cent. Our co-founder and portfolio manager Armina Rosenberg explained that three structural forces are working against the ASX simultaneously.
The primary issue is index composition. As Armina noted:
"If you look at it, the ASX is 35 per cent financials, 25 per cent materials and information technologies? Like 2 per cent. For the US, it's almost the exact opposite."
This means Australian investors lack exposure to the AI infrastructure theme driving global equities higher. Additionally, Australia's domestic macro environment remains challenged by persistent inflation and interest rate pressures, whilst weaker China-linked commodity demand has held back materials stocks.
Armina explained that we're focused on identifying growth opportunities within the AI infrastructure trade. We've positioned our portfolio in memory chip manufacturers SK Hynix and Micron Technology, alongside healthcare plays including Eli Lilly and Chugai Pharmaceutical. These positions reflect our view that the AI bottleneck has shifted from semiconductors to high-bandwidth memory. To read the article, click the link below.