Welcome to 2026. With best wishes for a safe, prosperous new year. A terrible start for many Victorians affected by the January bushfires – our hearts go out to them.
It is worth noting, if you or anyone you know has been affected, there is a range of bushfire relief measures that may be available. For information in the first instance, contact:
- Emergency Recovery Victoria hotline on 1800 560 760;
- Victorian Government emergency relief website emergency.vic.gov.au/relief
Investment Update
Alert readers will notice more movement in the tables of holdings below – as you would hope, given that we purposely target fund managers who actively and continually adapt portfolios to prevailing conditions. Of note:
- There is a new clubhouse leader – Infradebt has taken over from MGI Golf as the largest individual holding (outside of bank and term deposits). Infradebt loans money to the developers of infrastructure projects, primarily in the renewable energy arena.
Additional investments have been made into the Energy Transition Fund, which finances a select few large scale battery installations. Happily the funds have been performing solidly, in excess of 7% p.a., with low volatility. We will further spotlight Infradebt in forthcoming communications.
- A number of US listed shares have worked their way into the Top 20 – Google, Uber, NVIDIA, Apple. Interesting, given our historically low US exposure. The points of appeal with these particular holdings include:
- Well-established, with market dominance in their respective fields of endeavour;
- Proof that individual companies can continue to thrive even if “markets” are deemed to be expensive;
- All are in the technology sector, one which throws up endless opportunity but which is under-represented on the Australian market. You really have to look offshore to access meaningful exposure in tech.
- Two new funds have made their debut:
- The Mutual Cash Fund invests in the bank deposits of the four major Australian banks. In practice it will look and feel like being in term deposits, but with at-call liquidity. Secure, and handy for the cash and liquidity requirements of our Fund;
- The Aoris International Fund invests in a portfolio comprising a very limited number of companies, drawn from anywhere in the world – currently the US, UK and Europe. Very actively managed, and only in the Equities portfolio at present as we seek to further differentiate Equities from its stablemates.
Lastly, we have mentioned of late the perception that “markets are high” – that is, investors are paying a lot for assets, as a function of the earnings they generate.
Observations like these apply mainly to highly liquid markets like shares – which are traded every day, and where prices can and do fluctuate considerably in the short term, more in line with swings in investor sentiment, rather than because the investment’s outlook has changed significantly.
Investments that are not listed on share markets are instead usually valued periodically by a regular, more disciplined and formulaic method, which greatly reduces the irrational swings that can happen with share markets from time to time.
So it’s worth noting how few of the Top 20 investments are listed, and what proportion of the respective portfolios are made up of listed investments. Well under half of Growth, 20% of Defensive. This doesn’t guarantee immunity from severe downturns, but does suggest volatility will be low compared with market averages if things turn difficult.
So, who’s got what?
The table below shows the ARAIF’s investments at the time of writing. Please note, the percentages refer to the proportion of each portfolio allocated to that investment, not its rate of return.
Major Holdings – diversified portfolios
Apart from bank deposits and other interest-bearing accounts, Defensive, Growth and Equities portfolios invest in a range of assets through the fund managers listed in the table above. If we drill through to the assets selected and overseen by those managers, there are in fact over a hundred individual securities providing diversification of risk and exposure to a wide range of opportunities.
The table below shows the 20 largest individual holdings and what proportion of each portfolio they represent. These are the investments that will have the biggest impact on the portfolios’ returns.
Returns quoted in this report are after all costs, and before the application of management fee rebates. Return figures are pre-tax, and include the value of franking credits from franked dividends. Total return figures assume the re-investment of gross distributions including franking credits. 3-month return figures are for the period to 31 December 2025 and are not annualized. Data source ARA Consultants Pty Ltd & Context Capital (except where indicated)
ARA Consultants Pty Ltd provides this update for the information of its clients and associates. If you do not wish to receive this or other information about ARA in future, please contact us on (03) 9853 1688.
This document has been issued by ARA Consultants Pty Ltd for its own use and the use of its clients. Fundhost Limited (ABN 69 092 517 087) (AFSL No: 233 045) (Fundhost) is the issuer of the ARA Investment Fund (ARSN:104 232 448). Information contained in this document is general information and is not intended to constitute nor does it purport to offer any specific or individual investment advice. Whilst every effort has been made to ensure the accuracy of the information contained in this document, neither ARA nor Fundhost accept any liability in relation to anyone who makes and acts upon a decision based upon that information. No person should make a decision based upon the information contained in this document without first seeking and obtaining the appropriate professional advice relevant to their own individual circumstances and financial needs. You should consider the Product Disclosure Statement in deciding whether to acquire, or continue to hold the product. The PDS and applicable Target Market Determinations are available at www.araconsultants.com.au or by contacting ARA by phone on (03) 9853 1688 or by email at info@araconsultants.com.au. We also caution that past returns are just that, and the fact that they have been achieved previously does not guarantee or imply that they will be achieved again.
If you would like a pdf version of this update for your files you can download it here: December 2025 Quarter Investment Update.
