Portfolio Construction and Aus vs US equities

Hi Charles,

A very topical question which we have touched on through the week, and in particular where we looked at 4 major headwinds for the ASX- Here.

There are a few moving parts to this question:

•  US stocks are delivering better trading updates than many on the ASX and we can see ongoing underperformance from some pockets of the local market through 2026.
• However, markets are cyclical and if/when we see an end to the Iran War lifting economic growth forecasts the miners could run again, quickly changing the dynamic.
• We can also see the $A appreciating 10-15% against the $US through 2026/7 which may detract from performance of $US domiciled assets, assuming positions are not hedged.
• For bespoke portfolios James and his team manage (through Market Partners), a specific asset allocation structure is used,  that targets a percentage of the portfolio into international equities, and these are kept largely consistent. For example, in growth portfolios, international equities will have an allocation of 20-50%. We set the allocation (or a range), and we stick to it. Consistency is very important in our view.

In terms of the specific stocks mentioned:

• Mirvac (ASX:MGR) – the real risk here comes from interest rates and Mays budget where CGT and negative gearing changes threatens to slow housing activity – just what the Albanese Government needs to avoid during the current housing crisis. while we are unlikely to increase our fairly light exposure to housing/property, MGR is trading ~20% below its 5-year valuation and yielding ~6% – we believe the market has potentially sold MGR down ahead of this risk event, and we may well see a bounce when clarity emerges. The classic sell the rumor, buy the fact sort of scenario.
• Amcor (ASX:AMC) – is rotating between $54 and $60, having underperformed the ASX by nearly 10% over the past six months, after on a comparable basis, net sales were down 2% in Q1 FY26, with a 2.8% decline in volumes. However, AMC is undervalued in our view, pays a ~7% yield, but the market won’t re-rate it until volumes start to recover and Berry synergies are apparent. Next week’s Q3 result will be the next real line in the sand but we like the risk/reward at this stage.

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Amcor PLC (AMC)

LAST UPDATED 29/04/2026 13:16

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Amcor PLC (AMC)

LAST UPDATED 29/04/2026 13:16