For the quarter ended 30 June 2026, Wilson Asset Management Founders Fund outperformed its benchmark by 3.0%, increasing 3.7%*. The quarter was marked by subdued investor sentiment amid macro uncertainty, including geopolitical tensions, interest rate pressures, restrictive policy settings and the continued shift from active to passive investment strategies, reflecting trends seen in the first half of the year.
Against this backdrop, we remain focused on backing founder-led companies that exhibit long-term catalysts for share price rerating. However, we continue to apply our disciplined approach to position sizing, particularly where near-term macro risks could create downside volatility. In periods of heightened uncertainty, we favour a diversified portfolio of companies where we have strong conviction in the durability and visibility of their growth trajectories.
Beyond our domestic company visits, the investment team has travelled extensively over the past six months to the US, Europe, China and Singapore. The investment team met with divisional leaders from portfolio companies, alongside their customers, competitors and suppliers to validate our investment theses. These discussions provided valuable insights into industry dynamics and artificial intelligence (AI) adoption globally, helping us to assess both the opportunities and risks facing our portfolio companies, while also identifying new investment opportunities.
As we enter FY2027, we believe the investment portfolio is well positioned across four key themes:
1. AI infrastructure and contractors
We believe AI-related capital expenditure is still in the early stages of a multi-year growth cycle. Significant investment will be required across AI factories, data centres, energy transmission, batteries and renewables to support this capacity. Australia is poised to benefit from this demand, especially in states with the right land and energy profile.
Examples: Maas Group Holdings (ASX: MGH), GenusPlus Group, FDC Consolidated Holdings (ASX: FDC)
2. Ageing population and healthcare demand
Australia’s ageing population remains a clear and enduring structural trend. The needs of downsizers, retirees and aged-care residents are creating meaningful demand-supply imbalances, which we expect to persist over the coming years. This should provide efficient operators with strong demand and pricing power. Examples: GemLife Communities Group (ASX: GLF), Aspen Group (ASX: APZ), Regis Healthcare (ASX: REG)
3. Rate-sensitive and discretionary opportunities
Historically low consumer confidence in Australia, fuelled by interest-rate increases and the May 2026 budget, has negatively impacted consumer discretionary stocks. As such, our focus is on companies where valuations are compressed, but which also have growth drivers outside Australia. We believe this optionality is often underappreciated when domestic sentiment is weak. Examples: Eagers Automotive (ASX: APE), Breville Group (ASX: BRG), Premier Investments (ASX: PMV)
4. Oversold software companies with resilient growth
As a group, software companies have been a detractor to investment portfolio performance. However, our recent on-the-ground research across the US, Europe, and Asia has helped identify companies we believe have been unfairly sold off. In several cases, we believe these businesses are well positioned to benefit from AI, with the potential for accelerated growth over the next few years. Examples: Technology One (ASX: TNE), Megaport (ASX: MP1), Pro Medicus (ASX: PME)
Overall, while macro uncertainty remains elevated, we believe the investment portfolio is well positioned across a diversified set of high-quality, founder-led companies with attractive long-term growth prospects.
