ELMRI December 25 Quarterly Report

Dear Investor,

Our December 2025 Quarterly Report for our Funds is now available to read or download. You can access the full report via the button below, with key highlights provided further down.

Quarterly Highlights

The ELMRI ANZ Conviction Fund decreased by 15.2% for the quarter and 19.1% for the year. The ELMRI Global Fund decreased by 3.4% for the quarter and increased by 8.7% for the year. 

It remains ahead over 12 months, driven by strong gains in semiconductor infrastructure holdings (AMD, ASML, Broadcom, TSMC) due to AI demand.

Market volatility is creating attractive valuation opportunities in high-quality tech and software companies.

ANZ Fund Highlights:

The ELMRI ANZ Conviction Fund decreased by 15.2% for the quarter and 19.1% for the year.

The ELMRI ANZ Conviction Fund faced a volatile quarter and challenging year as quality growth and innovative businesses fell out of favour, with market leadership rotating toward lower‑quality cyclicals and more speculative names. High‑quality Australian technology and software holdings such as WiseTech Global, Xero, Pro Medicus and Life360 saw meaningful valuation compression despite maintaining strong fundamentals, and the portfolio continues to focus on financially robust market leaders where the recent valuation reset offers attractive long‑term entry points for investors.​

Global Fund Highlights:

The ELMRI Global Fund decreased by 3.4% for the quarter and increased by 8.7% for the year. 

The ELMRI Global Fund delivered a negative return for the quarter, underperforming the benchmark, but remains ahead over the past 12 months, supported by semiconductor infrastructure holdings such as AMD, ASML, Broadcom and TSMC, while short‑term volatility in software names like ServiceNow has created opportunities to add to high‑quality positions, leaving the fund well placed to benefit from powerful structural themes in AI and digital transformation.​

Conclusion

Both the ANZ Conviction Fund and the Global Fund faced a difficult December quarter, driven mainly by indiscriminate, macro‑led selling in software and healthcare, but the underlying business fundamentals across both portfolios remain solid and valuations now look compelling. While the ANZ Conviction Fund’s full‑year drawdown was concentrated in this period, the Global Fund’s exposure to semiconductor infrastructure and clean energy enabled it to deliver a gain for the year, and both portfolios are positioned in high‑quality companies with strong balance sheets, durable growth drivers and multiple catalysts into 2026, meaning recent volatility has improved, rather than impaired, the long‑term return outlook.​

Thank you for your ongoing interest and support.

Kind regards,

Jai Mirchandani
Founder, CIO and Portfolio Manager
ELM Responsible Investments

This note has been prepared by ELM Responsible Investments (‘ELMRI’) ABN 70 607 177 711 AFSL 520428, for Australian wholesale clients for the purposes of section 761G of the Corporations Act 2001 (Cth).

The information is not intended for general distribution or publication and must be retained in a confidential manner. Information contained herein consists of confidential proprietary information constituting the sole property of ELMRI and its investment activities; its use is restricted accordingly.

This note is for general informational purposes only and does not purport to be comprehensive or to give advice. The views expressed are the views of the writer at the time of preparation and presenting and all forecasts, assumptions, opinions, data and other information are not warranted as to accuracy or completeness and are subject to change without notice. This is not an offer document and does not constitute an offer or invitation of investment recommendation to distribute or purchase securities, shares, units or other interests to enter into an investment agreement. No person should rely on the content and/or act on the basis of any material contained in this note. Any potential investor should consider their own circumstances and seek professional advice.

ELMRI funds, its directors, employees, representatives and associates may have an interest in the named securities.

Past performance is for illustrative purposes only and is not indicative of future performance.