The Big Picture
Australian shares declined slightly over the week, as energy gains from higher oil prices were outweighed by weakness in healthcare and information technology.
Australian economic data remained resilient. The S&P Global Australia Manufacturing Purchasing Managers’ Index (PMI) rose to 51.7 in July, marking a fourth consecutive month of expansion, while 76,000 jobs were created in June and unemployment held at 4.4%. Ahead of the Reserve Bank of Australia’s 11 August meeting, the stronger data may provide scope for another rate rise if inflation remains persistent. Markets are pricing a 63% chance of rates remaining unchanged and a 37% chance of an increase.
The US announced tariffs of 10% to 12.5% on imports from 60 trading partners, including Australia, following an investigation into forced labour in global supply chains.
Most major US share indices finished lower amid concerns about returns on artificial intelligence (AI) investment and the inflationary effects of higher oil prices. However, earnings and employment data remained strong: 86% of reporting S&P 500 companies beat earnings estimates, while initial jobless claims fell to 187,000.
Middle East tensions and stalled ceasefire talks initially lifted oil prices, supporting energy stocks but weighing on travel and consumer sectors. Prices later eased after the US paused strikes against Iran and concerns about supply disruptions moderated. Higher oil prices also pushed the US 10-year Treasury yield above 4.7% before it eased to 4.68%.
The European Central Bank left rates unchanged, while Andy Burnham became the UK’s seventh prime minister since 2016.
Looking ahead, Australian consumer price inflation is expected to rise to 4.1% in June, from 4.0% previously. Markets will also focus on building approvals, further US earnings, the Federal Reserve’s policy decision, US GDP and consumer data, and the Bank of England’s interest rate announcement.
WAM Income Maximiser: One Year Update
We recently filmed a three-part series providing a one-year update on WAM Income Maximiser (ASX: WMX). In the third and final episode, Lead Portfolio Manager Matthew Haupt and Investor Relations Associate Tomasina East discuss where WAM Income Maximiser fits within an investor’s portfolio and how it can complement traditional equity investments.
The conversation explores the Fund’s flexible approach to balancing income and growth, while providing diversification through a combination of equities and high-quality debt. You can watch their discussion here.
If you missed the previous episodes you can view them here:
Episode 1:
FY2026 Full Year Results
Last week we released WAM Income Maximiser’s FY2026 results, with the investment portfolio increasing 19.2%¹ and outperforming the S&P/ASX 300 Accumulation Index by 13.4%, with 17.1% less volatility². This performance supported 6.9 cents per share in fully franked dividends during FY2026, including the value of franking credits, with increasing monthly fully franked dividends declared for July, August and September 2026.
Since inception in April 2025, the investment portfolio has increased 17.8%¹ per annum, outperforming its benchmark by 7.6% per annum, with 25.9% less volatility².
You can read the media release here.
Register for the WAM Income Maximiser FY2026 Full Year Result Q&A Webinar, being held at 2:00pm Sydney time this Thursday 30 July 2026, here.
WAM Active FY2026 Full Year Result Q&A Webinar
We also hosted the WAM Active (ASX: WAA) FY2026 Full Year Result Q&A Webinar last week. You can access the webinar materials here.
If you missed the result you can read the media release here.
Shareholder advocacy update
Last week we released our discussion paper, ‘How to build an economy that works for all Australians: Why Australia’s New Capital Gains Tax Weakens Productivity, Investment and Opportunity’. The Government’s capital gains tax (CGT) legislation steers capital away from the businesses that build our country and towards passive assets that do not. In our paper, we set out the behavioural and economic effects of that shift and the price Australia will pay for it. You can read the full discussion paper here.
In the media
Stock watch
SKS Technologies Group (ASX: SKS) is an electrical and communications contractor. The company has successfully pivoted towards data centre work, supporting material earnings growth and a significant re-rating in its share price. Data centres now represent approximately 50% of revenue, compared to 0% in FY2023. We expect this exposure to continue to grow, with SKS’ data centre tender pipeline exceeding $1 billion. Recent contract wins, including the $28m early works contract for AirTrunk’s MEL2 hyperscale facility in Melbourne, increase our confidence that the pipeline will convert into revenue. We remain positive on SKS, with pipeline conversion expected to support material organic earnings growth and upside to medium term consensus earnings expectations. Further expansion into the NSW data centre market also represents a significant catalyst for the company.
Slater + Gordon is one of Australia’s leading consumer law firms, with a long history in personal injury law, class actions, commercial litigation and employment law. The business is owned through Allegro Fund IV, following Allegro’s 2023 take-private acquisition of the formerly ASX-listed company. We like the investment because it aligns closely with Allegro’s strength in active, complex transformations – backing businesses with strong foundations and applying hands-on operational improvements to unlock value. Since acquiring Slater + Gordon, Allegro has been focused on revitalising the firm through improved workflows, stronger processes and technology enablement. For the WAM Alternative Assets (ASX: WMA) investment portfolio, Slater + Gordon is a practical example of a private equity investment in which value can be created through disciplined operational change over time.
Register for the Future Generation HY2026 Interim Results Q&A Webinars
Register for the Future Generation Australia (ASX: FGX) HY2026 Interim Results Q&A Webinar on Wednesday 29 July at 3:00pm (Sydney time), with Geoff Wilson AO, Founder and Director of Future Generation, Lee Hopperton, Chief Investment Officer, and Tom Richardson, Portfolio Manager at Paradice Investment Management.
Register for the Future Generation Global (ASX: FGG) HY2026 Interim Results Q&A Webinar on Friday 31 July at 2:00pm (Sydney time), with Geoff Wilson AO, Lee Hopperton and Nick Markiewicz, Portfolio Manager of Ellerston Capital’s Global Mid Small Strategy.
Index returns performance table
