The Aoris International Fund Class A (Unhedged) declined 2.4% in September, compared to a 2.4% gain for the benchmark. While recent performance has lagged materially, the Aoris team remains confident that the portfolio’s long-term fundamentals are intact and that the current environment presents better value for investors than it did three months ago.
Portfolio Review
Over the September quarter, notable detractors included Accenture, RELX, and SAP. While market sentiment has been cautious around the impact of AI on these companies, Aoris sees AI as an opportunity—not a threat—believing each firm is well-positioned to deepen its value to customers through innovation and productivity improvements.
In some cases, share price weakness reflected market neglect, as investor attention gravitated toward a narrow set of mega-cap technology names.
Market Context
Half of the benchmark’s 6.5% quarterly gain came from just four stocks — Tesla, Alphabet, Apple, and NVIDIA — each rising between 20% and 50%. These companies do not meet Aoris’ strict investment criteria and are not held in the portfolio. Elsewhere, China was a notable outperformer, with its equity index appreciating 17% for the quarter.
Looking Ahead
Although portfolio prices declined, the intrinsic value of the 15 businesses Aoris owns continued to rise. The portfolio now trades at a 20–25% discount to intrinsic value, compared to 15–20% at the end of June — representing improved entry value for investors.
Aoris remains confident in delivering its target 8–12% p.a. returns over a full market cycle and outperforming its benchmark over time.
“We remain confident our portfolio will deliver strong long-term returns. The fundamentals of our businesses are sound, and today’s valuations present an attractive opportunity for disciplined investors.”
— Stephen Arnold, Chief Investment Officer
📄 Access the full reports:
💼 Listed on the ASX:
- ASX: BAOR (Class B – Unhedged)
- ASX: DAOR (Class D – Hedged)
For more information on how Aoris may complement your investment strategy, please contact your Pacific Private Asset Management representative.