Updates

Elm’s digital platforms remain the main source of its profits, while the Thiqah acquisition has brought greater scale and lower-margin work. Our new initiation note looks at the scope for growth, the progress needed at Thiqah and whether today’s valuation reflects the longer-term earnings and cash flow potential.

Taaleem has spent heavily on new schools, with the effects showing in profits and debt. Our first note looks at how growing enrolments and lower construction spending could improve earnings and cash flow, alongside the risks as the new campuses fill up.

The MENA Select model returned 2.63% gross in US dollars in the September quarter, compared with 0.42% for its blended benchmark. Microsoft led the gains, while PureHealth, e& and Abu Dhabi Commercial Bank were the strongest regional contributors. The letter reviews the quarter and the October changes, including new positions in QNB, SAL Saudi Logistics and ADNOC Gas, with the 70% MENA / 30% global allocation retained.

Our first E7 Group note examines the growth of Identity Solutions, the returns from its expanded manufacturing base and the path to stronger cash generation.

The Global Quality model returned 8.24% gross in US dollars in the September quarter, compared with 2.35% for MSCI ACWI Net Return USD. Microsoft, ServiceNow and Meta led the gains, with financial infrastructure and healthcare also contributing. The letter explains why several strong performers were trimmed in October and introduces five new holdings, including Wolters Kluwer, Allianz and Abbott.

The Global Intelligence model returned 4.14% gross in US dollars for July–September, ahead of the benchmark’s 2.35%. Microsoft was the largest contributor, followed by Hitachi, Intercontinental Exchange and Mitsubishi UFJ. The new letter looks at the AI’s October decisions: a move to 23 fully invested holdings, the removal of the Australian minimum allocation and the concentration risks in the new portfolio.

The Global Intelligence research model finished its first year with a gross total return of 18.79% in Australian dollars, against 14.97% for the benchmark. It was far from a straight line: two positive opening quarters gave way to a difficult March, before a strong finish rebuilt the lead. The annual letter reflects on what worked, the concentration risks that became clear along the way and the changes made for the second year.

The research model returned 15.54% gross in Australian dollars for April–June 2026, compared with 11.83% for the benchmark. SK Hynix, ASML and TSMC led the gains, with resources, aerospace, insurance and power infrastructure also contributing. Following the March restructuring, the recovery came from a wider mix of businesses. The letter reviews those results and the portfolio entering the new financial year.

January–March 2026 brought the research model’s first quarterly loss: a gross return of -7.22% in Australian dollars, against -4.99% for the benchmark. The setback exposed a shared reliance on high valuations and growth expectations across holdings that had looked diversified by sector. The letter explains the response: a broader mix of earnings drivers, new exposure to insurance, energy and industrial infrastructure, and an increase in cash to 8%.

The research model gained 2.75% gross in Australian dollars over October–December 2025, ahead of the benchmark’s 1.96%. SK Hynix was the standout, while Alphabet and the new healthcare holdings helped offset weakness elsewhere. The letter looks beyond the positive headline to a narrower group of contributors, another currency headwind and the decisions behind the January rebalance.

The Global Intelligence research model returned 7.84% gross in Australian dollars in its opening quarter, July–September 2025, compared with 6.13% for the benchmark. Alphabet, Tencent and TSMC led the gains, despite a drag from currency movements. The first letter introduces the portfolio’s investment thinking and explains how the October rebalance broadened its exposure to financial infrastructure, healthcare and marketplace businesses.