Global Equities
Global High Conviction
Investor Updates
September 2025 | Investor Update
The TAMIM Global High Conviction unit class was up +4.89% for the month of August 2025. The strategy has generated a return of +15.72% over the past 12 months and 17.60% p.a. over the past 3 years.
The AI virus is everywhere in everything?
We expected some sort of retracement in September, but it didn’t happen. Equity markets rose despite steepening yield curves almost everywhere. The AI investment theme continued with significant jumps in Oracle (not owned) and Alibaba, KLA, Applied Materials and TSMC – all owned. Current levels of announced AI spending can go higher. Datacentre spending as a % of GDP is estimated to be at less than one half of that spent on railroads in the US in the 1880s. So for unapologetic bulls, there is grist for the mill.
The Global Diversified Trust rose just over 2% in A$ terms and the Global 30 Value biased, almost 3%. Growth has outperformed Value over recent time periods, again. The reason that our Value strategy has done so well is the (fortunate?) choice of the few Technology and Basic Materials stocks in which we hold necessarily large positions in a 30 stock portfolio.
Our philosophy remains to be fully invested and to focus on stock selection. It is however clear that the AI spend/frenzy is now infecting many sectors and thus correlations or momentum risk exposure for the whole market is rising. Getting diversified is harder. We’ll think a bit more about how to diversify risk.
The automobile sector was hurt by write downs by VW and Porsche on their Electric Vehicle production assets. It seems clear that Net Zero targets are unlikely to be met and even scrapped? Chinese EVs are technologically competitive and cheaper. Their energy costs are significantly lower than Europe’s. We wonder whether Australia can have a European approach to its economy (subsidies and net zero) while competing economically in Asia which has none of the accompanying inefficiencies. We also wonder why the US is not more constructive toward Japan given that Japan is the largest foreign owner of US treasury debt, has the technological ‘know how’ to help the US re-industrialise, and is a significant Pacific Ocean defence partner.
We made some trades in September. We purchased Prosus in the Netherlands as a proxy for Tencent in China. This rose fortunately quite strongly. We sold TE Connectivity and purchased Jabil Circuits, both US stocks, and initiated a position in Mabuchi Motors and Toyoda Gosei in Japan. We added to US positions from the receipt of dividends, bringing the country weight closer to the benchmark.
Our portfolio is positioned slightly toward a value bias with an overweight to Japan and underweight to Europe.
Fund Performance
Portfolio Highlights
Singapore Exchange Limited (SGX: S68)
Singapore Exchange (SGX) continues to demonstrate why it is one of Asia’s premier market infrastructure plays. FY25 revenue rose 11% to S$1.37 billion, with operating margins expanding to 54% and EBITDA margin at 56%. The growth reflects solid performance across equities, derivatives, and fixed income, complemented by increasing activity in commodities and currency products. Management’s disciplined execution has driven consistent earnings-per-share growth of over 10% per annum in recent years, while its balance sheet remains robust with S$1.5 billion in cash and minimal leverage. SGX benefits from its role as a regional hub for capital flows between East and West, a position reinforced by global de-risking and the shift of listings and trading activity towards stable jurisdictions. With a 2.1% dividend yield and strong cash generation, the stock remains a core holding for steady compounding exposure to Asia’s financial market development.
Toyoda Gosei Co., Ltd. (TSE: 7282)
Toyoda Gosei remains a key beneficiary of Japan’s industrial renewal and the global rebalancing of automotive supply chains. The company, 43.6%-owned by Toyota Motor Corporation, manufactures critical components such as weatherstripping, fuel and battery modules, and chassis systems. FY25 revenue was ¥1.06 trillion, essentially stable year-on-year, while EBITDA margins held firm at 11.3% despite cost pressures from input inflation. The company’s profitability is improving thanks to higher-margin products and operational efficiency initiatives, with ROE trending upward. Dividend yield stands at 3%, underpinned by a solid balance sheet and a conservative payout ratio. Looking ahead, Toyoda Gosei is well positioned to benefit from the rise of hybrid and electric vehicles through its battery and functional components division, while its global customer base provides resilience across market cycles. The stock trades on a modest 0.86x book value and 4.1x EV/EBITDA, representing attractive value for a globally diversified Tier 1 automotive supplier.
AECOM (NYSE: ACM)
AECOM continues to be one of the world’s leading professional infrastructure consulting firms, with exposure to structural themes in energy transition, urban development, and climate resilience. FY24 revenue grew 12% to US$16.1 billion, and EBITDA margins expanded to 6.9%. Management’s focus on operational excellence has driven consistent margin improvement, with net income margins expected to rise above 4% in FY25. The company provides integrated advisory, engineering, and project management services across energy, water, transportation, and social infrastructure, making it a high-quality enabler of global infrastructure investment. AECOM’s balance sheet remains strong, with over US$1.8 billion in cash and modest leverage. The stock trades at approximately 24.5x FY25 earnings but offers premium quality and durable earnings visibility. As governments worldwide continue to increase spending on infrastructure renewal, particularly in the U.S. and Asia-Pacific, AECOM stands to benefit from a sustained multiyear tailwind.
Fund Facts
Investment Parameters
| Management Style: | Active |
| Investments: | Global Equities |
| Number of securities: | 80-110 |
| Single security limit: | +/- 5% relative to Investable Universe |
| Country/Sector limit: | +/- 10% relative to Investable Universe |
| Market capitalisation: | US$2+bn |
| Derivatives: | No |
| Leverage: | No |
| Portfolio turnover: | Typically < 25% p.a. |
| Cash level: | 0-100% (typically 0-10%) |
Fund Profile
| Investment Structure: | Unlisted Unit Trust available to wholesale or sophisticated investors |
| Minimum Investment: | $100,000 |
| Management Fee: | 1.00% p.a. |
| Admin & Expense Recovery: | Up to 0.35% |
| Performance Fee: | 20% of performance in excess of hurdle |
| Fee Cap: | 2% of total FUM |
| Entry/Exit Fee: | Nil |
| Buy/Sell Spread: | +0.25% / -0.25% |
| Applications: | Monthly |
| Redemptions: | Monthly with 30 days notice |
| Investment Horizon: | 3-5+ years |
| Distributions: | Annual |
