Welcome to the first edition of our refreshed weekly newsletter. The Weekly aims to help you stay informed by providing the latest investment insights and market outlook, along with stock updates from our investment portfolios.
Market updates
The S&P/ASX 200 Accumulation Index ended the week up 1.9%, the first weekly gain since mid-February. All sectors were in the green, with Woolworths (ASX: WOW) and Coles (ASX: COL) up 7.4% and 4.1% respectively on the back of the conclusion of the ACCC enquiry into price gouging, driving the 4.0% gain in the consumer staples sector. The S&P/ASX Small Ordinaries Accumulation Index gained 2.6%, partly driven by small cap energy stocks and Nanosonics (ASX: NAN) which received U.S. FDA approval for its sterilising device, held in the WAM Capital (ASX: WAM) investment portfolio.
Copper continued its upward trajectory, up 4.2% in the week and 23.5% in the past three months. U.S. stocks similarly closed the week higher, with small caps (Russell 2000 Accumulation Index) up 0.7%, outperforming large caps (S&P 500 Accumulation Index, up 0.5%), driven by softness in large-cap tech stocks. The MSCI World Accumulation Index ended the week up 0.8% as investors reposition after turbulence in markets. This week, we continue to monitor U.S. President Donald Trump’s tariff agenda and turn our focus to the Federal Budget.
In focus: Crowded markets across the globe
Amid heightened uncertainty, we have seen the unwinding of some very crowded positioning globally in recent weeks. Where has the crowding been? In the U.S., the so-called “Magnificent Seven” technology stocks have grown to occupy a significant share of overall market capitalisation, with market concentration peaking at levels not seen since the 1930s. The “U.S. exceptionalism” trade has gone hand in hand with: (1) significant outperformance of U.S. equities with respect to the rest of the world, notably Europe and China; (2) significant outperformance of larger stocks relative to smaller ones. In the Australian context, banks have been the proxy for the largest and most liquid U.S. technology stocks given the low representation of Australian technology stocks in the index, and medium-term concerns about the Chinese economy and resources. At Wilson Asset Management, we have been mindful of crowded trades for some time, and have looked for opportunities to position for unwinding, whether through small caps, resources, or U.S. stocks offering better quality and growth at a reasonable price outside of the “Magnificent Seven”.
Stock watch
Challenger (ASX: CGF)
Analysts are estimating Challenger could return $500m to shareholders via a share buyback following APRA’s announcement that it will review the calculation of the ‘illiquidity premium’ for annuity providers, helping lower the capital requirements for life insurers that offer annuity products to its members.
Held in: WAM Leaders (ASX: WLE)
Smartpay Holdings (ASX: SMP)
Smartpay Holdings, whose EFTPOS machines are used by more than 40,000 businesses, has received non-binding indicative offers from at least two parties. The share price railled 47% last Monday on the back of the announcements and continued to creep up in the following days.
Held in: WAM Capital, WAM Microcap (ASX: WMI)
Allfunds Group (AMS: ALLFG)
A leading business-to-business wealth tech platform for the funds industry, inched up another 2.1% in the week as investors continued to digest the strong financial result earlier in the month and reflect the increasingly positive outlook for European markets and continued cyclical fund flow recovery in 2025. Allfunds Group has gained 10.8% since the beginning of the year.
Held in: WAM Global (ASX: WGB)
Evnex (Adamantem Capital)
Electric vehicles (EV) sales in Australia represented almost one in every ten cars bought in 2024, driven by attractive government incentives and lower purchase prices as more manufacturers enter the Australian market. Evnex (Adamantem Capital), a leading New Zealand based manufacturer and distributor of smart, fast electric vehicle chargers, has continued to execute on its expansion into the Australian market and saw strong sales growth in the December 2024 quarter.
Held in: WAM Alternative Assets (ASX: WMA)
The week ahead
The 2025-26 Federal Budget at 7:30pm (Sydney time). For more information visit here. Stay tuned for next week’s edition of The Weekly, where we will provide more information on the key takeaways from the Budget.
WAM Income Maximiser: Apply now for your Priority Allocation
As a valued member of the Wilson Asset Management family, we are pleased to provide you with a priority invitation to invest in WAM Income Maximiser Limited.
The offer is currently expected to close on Friday 11 April 2025 at 5:00pm (Sydney time). The Board of Directors is pleased to announce that the offer has exceeded the minimum subscription on opening, which has been met with strong demand from investors.
To apply for the priority allocation, you can visit the Priority Allocation Application Portal for a copy of the Prospectus and its accompanying application form for completion.
On Friday, 21 March 2025 we hosted the WAM Income Maximiser Q&A Webinar. If you were not able to attend you can access the audio recording here.
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You can also follow Wilson Asset Management Founder and Chairman Geoff Wilson AO on X.
If you have any feedback you would like to share or wish to speak to a member of the Wilson Asset Management team, please respond to this email or call Christopher Ball on 02 9247 6755. You can also email us at [email protected].
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