How the portfolios performed over the December 2025 quarter
Market sentiment improved modestly through the December quarter, with global share markets delivering broadly positive outcomes despite intermittent volatility. Early weakness, particularly in parts of the US technology sector, eased toward year end following the US Federal Reserve’s December rate cut, supporting confidence in a more stable policy outlook. Gains were steady rather than exuberant, reflecting sensitivity to growth, inflation, and valuations. Artificial intelligence remained a key structural theme, supported by strength in defensive sectors, commodities, and gold.
Australian shares finished the year lower after a volatile period. Stronger-than-expected inflation and economic data prompted a reassessment of the monetary policy outlook, weighing on interest rate-sensitive sectors as expectations shifted toward a prolonged period of restrictive settings and the possibility of rate rises in 2026. International share markets delivered overall gains. Developed markets performed well, led by the US and Europe, supported by steady earnings, easing inflation pressures, and clearer policy direction. In Asia, performance was more mixed, with Japan continuing to outperform on improving domestic conditions, while emerging markets delivered stronger gains despite China lagging amid softer sentiment.
Fixed interest markets delivered divergent outcomes. Global bond markets were supported as central banks adopted a more accommodative tone. In contrast, Australian fixed interest faced headwinds as rising yields reflected a reassessment of the policy outlook. Credit markets were comparatively resilient, supported by solid corporate fundamentals and ongoing demand for income. Global credit and high yield held up better, while Australian credit retreated amid higher bond yields.
The Partners Portfolios posted flat to modest returns during a period of mixed outcomes across global markets.
Key Contributors
Chester High Conviction added value to the Partners Long Term Portfolio over the December period, significantly outperforming the broader Australian share market, which declined amid weakness across financials and other interest-sensitive sectors outweighed strength in resources amid a cautious domestic policy backdrop. Performance was driven by strong gains in the portfolio’s resources exposures, supported by favourable commodity price movements and corporate activity that helped unlock value in several key holdings. Select positions also benefited from positive operational updates and improving investor sentiment, highlighting the fund’s high-conviction approach and its ability to capture upside in a challenging domestic market environment.
ClearBridge Global Infrastructure Income added value across the Partners Medium Term, Long Term, and Multi-Asset Income Portfolios, outpacing the broader global infrastructure index by some margin. Performance was supported by strength in regulated infrastructure assets, particularly within European utilities, where resilient electricity demand and solid earnings growth continued to underpin returns. An improving outlook for global power consumption, alongside the benefit of easing bond yields, provided a supportive backdrop for listed infrastructure more broadly. These conditions reinforced the asset class’s defensive and income-generating characteristics, enabling the strategy to perform well despite ongoing macroeconomic uncertainty.
Key Detractors
GQG Partners Global Equity detracted from returns across the Partners Medium Term and Long Term Portfolios, materially underperforming the broader market in a quarter where international shares delivered solid gains, supported by resilient earnings and a broadening of market leadership beyond US mega-cap technology. The fund’s more defensive positioning provided some offset during periods of market volatility, with contributions from healthcare and regulated utility exposures and stronger performance on days when equity markets declined. However, relative results were held back by limited exposure to AI-driven market leaders and weakness within communication services, particularly US telecommunications, where increased competition and pricing pressure weighed on returns.
Looking Ahead
As we enter 2026, the macro environment remains broadly supportive, with moderating inflation and resilient corporate earnings across major economies despite policy uncertainty, tariffs, and pockets of softer economic data. However, monetary policy paths are diverging, with the US Federal Reserve expected to ease rates gradually while inflation in Australia remains more persistent, raising the possibility of rate rises in 2026. This divergence continues to influence bond markets and shape relative opportunities within fixed interest.
Structural themes such as artificial intelligence remain a key source of opportunity, with investment extending beyond large US technology companies into industries that support broader adoption. At the same time, elevated share market valuations and ongoing policy and geopolitical risks point to a more uneven return environment. This reinforces the importance of diversification, selectivity, and a disciplined focus on fundamentals as markets move into a more mature phase of the cycle.
Ironbark Advice is the sponsor of the Partners Portfolios. Ironbark Advice is comprised of the following wholly owned entities of Ironbark: Advice First Pty Ltd, Advisory Group Pty Ltd, ARTT Group Pty Ltd, Brisbane Financial Services Pty Ltd, Elevate Financial Solutions Pty Ltd, Emohruo Financial Services Pty Ltd, Invest Blue Armidale Pty Ltd, Invest Blue Brisbane Pty Ltd, Invest Blue Coffs Harbour Pty Ltd, Invest Blue Direct Pty Ltd, Invest Blue Gladstone Pty Ltd, Ogilvie Financial Services Pty Ltd, TDT (Tas) Pty Ltd, The Bravien Group Pty Ltd, Vintage Wealth Pty Ltd and Wainscott Financial Planning & Advice Pty Ltd, trading as Ironbark Advice are authorised representatives and credit representatives of Akumin Financial Planning Pty Limited, Australian Financial Services Licence and Australian Credit Licence No. 232706. Countrywide Advice Pty Ltd and GrowUp Financial Pty Ltd trading as Ironbark Advice are authorised representatives and credit representatives of Charter Financial Planning Limited, Australian Financial Services Licence and Australian Credit Licence No. 234665. GR & LC Thompson Pty Ltd trading as Ironbark Advice, is an authorised representative and credit representative of Hillross Financial Services Limited, Australian Financial Services Licence and Australian Credit Licence No. 232705. LFC Advice Pty Ltd (ABN 19 647 509 466) trading as Ironbark Advice, is a Corporate Authorised Representative of LFC Group Pty Ltd (ABN 35 644 576 965), AFSL 526600.