Elston Quarterly Portfolio Update Q424

15th October 2024

We have made one tactical asset allocation (TAA) change to portfolios. Specifically, we have neutralised the underweight to Global Listed Property across the growth orientated portfolios, funded by marginally reducing defensive assets.

Key Investment Rational for TAA Changes:

Globally, both inflation and growth have slowed as tight monetary policy restrains activity but economies, especially the US, continue to expand.
We expect inflation and interest rates to be lower over the next 12 months, and economic growth to improve.
As more central banks commence easing cycles, asset classes that are sensitive to interest rates – Global Listed Property – are likely to benefit from the following:
- Lower interest costs
- Increased transaction volumes
- More stable property values
- Improved investor sentiment towards the sector
Additionally, the expected improvement in economic growth should see an increasing number of companies growing profits, creating a healthy market environment from which the listed property sector has historically benefited. This is a positive signal to neutralise the underweight to Global Listed Property.

As always, thank you for your support, and additional information on the adjustments is available in the video updates and Portfolio Positioning document.

Warnings and disclosures

This material has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making an investment decision based on this advice you should consider whether it is appropriate to your particular circumstances, alternatively seek professional advice. Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a Product Disclosure Statement (“PDS”) relating to the product and consider the PDS before making any decision about whether to acquire the product. You will find further details of the service we provide and any cost to you within the Financial Services Guide. Any references to past investment performance are not an indication of future investment returns. Prepared by EP Financial Service Pty Ltd ABN 52 130 772 495 AFSL 325 252 (“Elston”). Although every effort has been made to verify the accuracy of the information contained in this material, Elston, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information.