VIP Growth Portfolio Performance Overview
The VIP Growth Portfolio continue to return positive performance amid market turbulence and US recession fears. Over the past month the portfolio underperformed its Benchmark by 47bps Due to global and domestic uncertainties. the portfolio has strategic been positioned to mitigate risk with its Standard deviation at 7.78% compared to Vanguards 8.77%.
Contributors were Orbis Global (+0.65%), Goodman Group (+0.55%), and BetaShares Global Uranium (+0.41%). Detractors were GQG (-0.29%), Worley (-0.09%), and CSL (-0.05%). This shows value-tilted stock-picking, rate-sensitive logistics A-REITs helped by RBA easing, and uranium’s up-cycle gains, while US quality-growth lagged amid tariff volatility, energy services softened on project pauses, and healthcare underperformed during rotation consistent with our view of gold/Japan resilience, US headwinds, and property’s sensitivity to falling discount rates.
Australian Economy
Inflation cooled to 2.1% in the June quarter, while unemployment rose to 4.3%, sustaining a tentative soft-landing narrative. After February’s 25 bp move, the cash rate stands at 4.10%, with the RBA signalling cautious, data-dependent easing as inflation moderates.
Major banks passed on the cut to mortgage and business borrowers, reinforcing financial-conditions relief despite subdued household demand. Long-end pricing is aligned, with the 10-year ACGB in the low-4% area about 4.18% on 30 June supporting rate-sensitive assets like A-REITs.
International Markets
In the U.S, sweeping tariff measures including a 25% levy on autos kept policy risk elevated while the Fed held rates in June. The dollar logged one of its weakest first halves in decades and gold hovered around US$3,300–3,400 on safe-haven demand. Across Europe, the ECB cut a further 25 bp on 5 June to a 2.0% deposit rate, improving policy visibility even as trade uncertainty persisted. Japan kept policy rates low while ongoing governance reforms, rising buybacks, and stronger capital discipline continued to attract foreign investors. Strategic Adjustments
Strategic positioning
VIP maintained a defensive stance and increased European exposure via Global X’s etf ESTX. In April VIP bought JCB Global and reduced domestic small caps. In May VIP trimmed US exposure and allocated funds towards domestic A-REITS ahead of expected RBA easing to mitigate international volatility and favour the domestic stability found in property. Towards the end of the quarter VIP diversified its healthcare exposure by adding Cochlear and moved away from international bonds in favour of domestic short duration through JCB Active.
These strategic adjustments aim to navigate global economic uncertainty while positioning the portfolio to benefit from long-term structural trends. By focusing on defensive sectors and strategic resource allocations, the portfolio aims to navigate economic volatility effectively while delivering long-term returns aligned with its capital preservation and growth philosophy.