10k Words

Equitable Investors

June 2026

(2-minute read)

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A takeover of the US equities market by foreign investors and passive vehicles; leading into the equal-weighted index lagging. Demand for power surging as free cash flow generation at the "Mega Tech" collective goes the other way; fund managers' most crowded trade amid all that is semi-conductors; and AI attracts new founders like moths to the flame. The value of US equities and housing is at record levels relative to GDP; but investor sentiment remains positive; and the number of investors expecting multiple expansion is evenly balanced with those predicting contraction. Elsewhere, we see evidence of softness in the Australian employment market and the widened gap between the top decile and bottom decile of US consumers.

Ownership share of US corporate equities

Source: FT.com, Goldman Sachs

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Ratio of the equal-weighted S&P 500 to the S&P 500 index is down to 1.1, near the lowest since 2003

Source: The Kobeissi Letter, TheDailyShot

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Worldwide data centre power consumption projections (TWh): 2025 - 2027

Source: Equitable Investors, Gartner

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"Mega Tech" free cash flow diminished - "capital light" model gone

Source: BCA Research

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Most crowded trade

Source: Bank of America Fund Manager Survey

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AI-driven surge in number of startup founders

Source: Apollo

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Value of US equities and housing stock relative to GDP

Source: re:venture

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ASR Asset Allocation Survey - composite optimism indicator

Source: Bloomberg, Absolute Strategy Research

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Survey on probability that global equity multiples will be higher a year from now

Source: Bloomberg, Absolute Strategy Research

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Seek Employment Index - May 2026

Source: Seek

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US consumer spending by income percentile

Source: FT.com, Moody's

Funds operated by this manager:

Equitable Investors Dragonfly Fund

Disclaimer

Past performance is not a reliable indicator of future performance. Fund returns are quoted net of all fees, expenses and accrued performance fees. Delivery of this report to a recipient should not be relied on as a representation that there has been no change since the preparation date in the affairs or financial condition of the Fund or the Trustee; or that the information contained in this report remains accurate or complete at any time after the preparation date. Equitable Investors Pty Ltd (EI) does not guarantee or make any representation or warranty as to the accuracy or completeness of the information in this report. To the extent permitted by law, EI disclaims all liability that may otherwise arise due to any information in this report being inaccurate or information being omitted. This report does not take into account the particular investment objectives, financial situation and needs of potential investors. Before making a decision to invest in the Fund the recipient should obtain professional advice. This report does not purport to contain all the information that the recipient may require to evaluate a possible investment in the Fund. The recipient should conduct their own independent analysis of the Fund and refer to the current Information Memorandum, which is available from EI.

Japan - From Observation to Conviction

and Two Quality Investment Ideas

Alphinity Investment Management 

May 2026

4-minute read

Japan is changing -- and the pace of that change is easy to underestimate from a desk in Sydney. Global Portfolio Manager Chris Willcocks recently completed a week-long investor trip through Osaka, Tokyo, Kyoto and Nagoya, meeting management teams across Industrial, Consumer, Property and Technology companies. The on-the-ground experience reinforced and deepened a thesis already forming in our portfolios. Below we share the highlights from those observations -- and two quality Japanese companies which are in an earnings upgrade cycle.

Three forces reshaping Japan

Japan's transformation rests on three structural pillars that are now compounding positively for the first time in decades. Each alone would be noteworthy; together, they represent the most significant fundamental improvement recent memory.

The End of 40 Years of Deflation
Japan has been broadly deflationary for the better part of four decades. Deflation becomes embedded in behaviour; consumers defer purchases, companies avoid price increases and wages stagnate. Japan has now sustained inflation for three consecutive years, and the behavioural shift is tangible. Rail companies are raising fares for the first time in their corporate history. Convenience stores are putting through price increases of up to 50% on select products, with minimal demand destruction. Wages are rising 5-10% at many companies and with poor demographics, job security is high.

Inflation Has Finally Arrived & Wages are Keeping Pace

Corporate Governance Reform Reaches a Tipping Point
Pressure from the Tokyo Stock Exchange to improve capital efficiency and investor returns has been building for ten years and we are now seeing the results. Several companies we met had launched their first-ever share buybacks. Cross-shareholdings are being unwound. Non-core assets are being divested -- with one consumer company even selling its marriage counselling business as part of a strategic clean-up. Others were hosting their inaugural investor days. These may sound like trivial changes, but they reflect a fundamental reorientation towards minority shareholders, and most importantly, they are driving improved returns on equity.

A Populist, Pro-Growth Political Mandate
Prime Minister Takaichi has secured a strong political mandate to drive her nationalistic, pro-growth agenda. For investors, this matters because it provides policy stability and support for the economic reflation already underway.

Taken together these macro forces are driving up asset prices and boosting consumer confidence. You see evidence of this across the cities and financial markets. House prices in parts of Tokyo have appreciated ~40% in six months, the Nikkei has surpassed its 1989 all-time high, inbound tourism is at record levels. There were more Ferraris and Lamborghinis on the streets of Tokyo than we have seen in any city recently. Mirroring global trends, the lower-end consumer is less buoyant, and construction faces increasing cost headwinds, but the broader picture is one of a country regaining its economic confidence.

The Japanese stock market in context

Against this macro backdrop, the question for active investors is not whether Japan is changing -- it is which companies are best placed to capture that change.

Two high quality Japanese companies

Alphinity invests in Earnings Leaders -- quality businesses, trading at reasonable valuations, that are entering or sustaining an earnings upgrade cycle. Japan, at this point in its structural reset, is generating exactly that kind of opportunity. The two companies we discuss below are held across our global funds.

Fast Retailing -- the Japanese apparel giant behind the UNIQLO brand -- has quietly evolved from a domestic discount retailer into one of the world's most compelling consumer growth stories. Founded in 1949 and listed in Tokyo since 1999, the company today generates ¥3.4 trillion in annual revenue across over 2,500 stores in more than 25 countries, with a long-term revenue target of ¥10 trillion. At the helm is founder Tadashi Yanai, who retains a ~40% stake and remains as deeply invested in the business as ever -- in every sense.

A Deliberately Simple Business Model

Where brands like Zara carry over 20,000 product lines (SKUs), Uniqlo only sells 4,000 different items -- and this includes multiple colour variants of the same item. This discipline sounds limiting, but it is a strategic strength. Fewer lines mean tighter inventory management, less markdown risk, and structurally higher margins. Uniqlo focuses on what might be called 'technical basics': quality, functional casualwear with limited fashion-season risk and a balanced offering across genders and age groups.

A track record of consistent margin expansion with more expected

Strong Earnings Momentum

Fast Retailing just reported second-quarter results that beat expectations on both sales and margins, across all major geographies. Revenue is growing at close to 15% per annum, driven by robust Japan same-store growth, accelerating store expansion in Europe and the US, and a recovering contribution from China.

The Market Is Underestimating the Western Opportunity

Uniqlo remains meaningfully underpenetrated in Europe and the United States relative to its footprint in Asia. We believe sell-side analysts are consistently underestimating the long-term earnings potential from this geographic expansion. Ultimately, this is a high-quality global brand in the early stages of becoming a genuine western retail force -- and the market is not fully pricing that in.

Mitsubishi UFJ Financial Group (MUFG) is Japan's largest bank by deposits and loans, with significant operations in the US and Southeast Asia.

The Core Thesis: Rising Rates Change Everything for Japanese Banks

Japanese banks have operated in a near-zero or negative interest rate environment for over a decade. This structurally compressed net interest margins and suppressed profitability. As the Bank of Japan normalises monetary policy -- which is now underway -- the earnings leverage is significant. A sustained shift to positive real rates in Japan is, arguably, the single most powerful earnings tailwind available in global banking today. MUFG, as the largest Japanese bank, is a direct expression of this trade.

Quality and Diversification Often Underappreciated

MUFG generates approximately 40% of group profits outside Japan -- roughly 20% from the US (excluding a stake in Morgan Stanley), 10% from Korea, and the remainder from Asia and EMEA. This geographic diversification is not always reflected in how the stock is discussed. Corporate governance has also improved substantially: the board now includes 10 non-executive directors, shareholder returns are rising, and the company has a clear target to reduce legacy equity cross-holdings.

Valuation Remains Attractive

Despite the re-rating underway, MUFG continues to trade at a modest multiple. Improving ROE, rising dividends, and a growing buyback program are catalysts for further re-rating. For advisers seeking broad Japan macro exposure with financial sector ballast, MUFG is our preferred vehicle.

MUFG - Strong earnings upgrade cycle underpinned by normalised monetary policy

Japan's transformation has been a long time coming -- and that is precisely what makes it compelling. Structural change of this magnitude does not reprice overnight. The combination of persistent inflation, genuine corporate behaviour change, and a politically-supported growth agenda creates the conditions for a multi-year earnings upgrade cycle -- exactly the environment in which Alphinity's investment approach is designed to add value. We will continue to seek opportunities as Japan's reset deepens.

Funds operated by this manager:

Alphinity Australian Share Fund , Alphinity Concentrated Australian Share Fund , Alphinity Sustainable Share Fund , Alphinity Global Equity Fund , Alphinity Global Sustainable Equity Fund

This material has been prepared by Alphinity Investment Management ABN 12 140 833 709 AFSL 356 895 (Alphinity). It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Any projections are based on assumptions which we believe are reasonable but are subject to change and should not be relied upon. Past performance is not a reliable indicator of future performance. Neither any particular rate of return nor capital invested are guaranteed.

Market Commentary - May

Glenmore Asset Management

June 2026

(2-minute read)

Funds operated by this manager:

Glenmore Australian Equities Fund

Expert Analysis of the RBA's June 16 Rate Decision

FundMonitors.com

June 2026

Chris Gosselin, CEO of FundMonitors.com, speaks with Nicholas Chaplin, Director and Portfolio Manager at Seed Funds Management, about the Reserve Bank's decision to keep rates on hold and what it may signal for the months ahead. They discuss inflation pressures, the impact of oil prices and geopolitical tensions, and why rate cuts may remain unlikely in the near term.

National Adviser Roadshow - The Great Mispricing

Airlie Funds Management

May 2026

(Viewing time: 26 mins)

Chris Gosselin, CEO of FundMonitors.com, speaks with Clint Maddock, Director and Co-Founder at Digital Asset Funds Management.

Clint discussed how the fund has remained profitable despite Bitcoin's recent decline, highlighting its market-neutral arbitrage strategy across multiple digital asset exchanges. He also shares his outlook on crypto market catalysts, including regulatory developments in the US, and the fund's growth following its distribution partnership with Montgomery Funds Management.

Funds operated by this manager:   DAFM Digital Income Fund (Bitcoin Index Class) , DAFM Digital Income Fund (Digital Income Class)

Global Perspectives: Addressing the most

essential questions around AI

Janus Henderson Investors

May 2026

(Duration: 29 minutes)

Funds operated by this manager:

Janus Henderson Australian Fixed Interest Fund , Janus Henderson Conservative Fixed Interest Fund , Janus Henderson Diversified Credit Fund , Janus Henderson Global Natural Resources Fund , Janus Henderson Tactical Income Fund , Janus Henderson Australian Fixed Interest Fund - Institutional , Janus Henderson Conservative Fixed Interest Fund - Institutional , Janus Henderson Cash Fund - Institutional , Janus Henderson Global Multi-Strategy Fund , Janus Henderson Global Sustainable Equity Fund , Janus Henderson Sustainable Credit Fund

All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect. The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

Whilst Janus Henderson believe that the information is correct at the date of publication, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson to any end users for any action taken on the basis of this information.

Who's winning the AI race - and does it matter?

abrdn

May 2026

(Duration: 27 Mins)

Funds operated by this manager:

Chris Gosselin, CEO of FundMonitors.com, speaks with Emanuel Datt, founder and Chief Investment Officer at Datt Capital. Emanuel discussed recent market volatility, the divergence between large and small caps, and the opportunities emerging in the small companies space.

He also discussed Datt Capital's approach to sector analysis, including technology, AI adoption, and energy, as well as the Fund's cash position and ability to act on market dislocations.

Disclaimer: This conversation with FundMonitors was recorded prior to the release of the federal budget.

Funds operated by this manager:

Datt Capital Absolute Return Fund , Datt Capital Small Companies Fund

Expert Analysis of the RBA's May 5 Rate Decision

FundMonitors.com

May 2026

Chris Gosselin, CEO of FundMonitors.com, spoke with Nicholas Chaplin, Director and Portfolio Manager at Seed Funds Management, and Renny Ellis, Director & Head of Portfolio Management at Arculus Funds Management.

The discussion examines the RBA's decision to raise rates to 4.35%, with a focus on inflation pressures, the impact of energy costs, recession risks, and the broader implications for households, markets, and the Australian economy.

Chris Gosselin, CEO of FundMonitors.com, speaks with Benjamin Harrison, Chief Investment Officer at Altor Capital. 

In this conversation, Ben shared how the Altor AltFi Income Fund has delivered consistent performance over seven years, combining private credit investments with unique equity kickers. He also discussed their hands-on approach, focus on mid-market corporates, and where he sees the greatest opportunities for growth-making this a valuable watch for investors interested in private credit.

Expert analysis on what the RBA will do next Tuesday, May 5

FundMonitors.com

May 2026

Chris Gosselin, CEO of FundMonitors.com, speaks with Nicholas Chaplin, Director and Portfolio Manager at Seed Funds Management, and Renny Ellis, Director & Head of Portfolio Management at Arculus Funds Management.

The discussion centres on Australia's latest inflation figures and whether the RBA should hold rates steady ahead of the federal budget. Nick and Renny broadly agree the central bank should wait for more data, while weighing the risks that temporary inflation pressures from energy and geopolitical uncertainty could become more persistent.

Airlie Small Companies Fund Quarterly Update

Airlie Funds Management

January 2026

(Viewing time: 15 mins)

Funds operated by this manager:

Airlie Australian Share Fund Active ETF (ASX:AASF) , Airlie Small Companies Fund

Important Information: 

This material has been delivered to you by Magellan Asset Management Limited ABN 31 120 593 946 AFS Licence No. 304 301 trading as Airlie Funds Management ('Airlie') and has been prepared for general information purposes only and must not be construed as investment advice or as an investment recommendation.  This material does not take into account your investment objectives, financial situation or particular needs. This material does not constitute an offer or inducement to engage in an investment activity nor does it form part of any offer documentation, offer or invitation to purchase, sell or subscribe for interests in any type of investment product or service. You should obtain and consider the relevant Product Disclosure Statement ('PDS') and Target Market Determination ('TMD') and consider obtaining professional investment advice tailored to your specific circumstances before making a decision about whether to acquire, or continue to hold, the relevant financial product. A copy of the relevant PDS and TMD relating to an Airlie financial product or service may be obtained by calling +61 2 9235 4760 or by visiting www.airliefundsmanagement.com.au.

Past performance is not necessarily indicative of future results and no person guarantees the future performance of any financial product or service, the amount or timing of any return from it, that asset allocations will be met, that it will be able to implement its investment strategy or that its investment objectives will be achieved. This material may contain 'forward-looking statements'. Actual events or results or the actual performance of an Airlie financial product or service may differ materially from those reflected or contemplated in such forward-looking statements.

This material may include data, research and other information from third party sources. Airlie makes no guarantee that such information is accurate, complete or timely and does not provide any warranties regarding results obtained from its use. This information is subject to change at any time and no person has any responsibility to update any of the information provided in this material. Statements contained in this material that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Airlie. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. No representation or warranty is made with respect to the accuracy or completeness of any of the information contained in this material. Airlie will not be responsible or liable for any losses arising from your use or reliance upon any part of the information contained in this material.

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