Magellan's Airlie Australian Share Fund Portfolio as of June 2026 Highlights BHP, CBA, and NAB as Top Holdings

BHP Group Leads with a Significant 12.9% Portfolio Weighting

BHP Group Ltd is the largest position in the Airlie Australian Share Fund, representing 12.9% of the portfolio as at 30 June 2026. This substantial weighting reflects strong exposure to one of Australia’s premier integrated mining and petroleum companies, involved in extracting and processing key minerals such as iron ore, copper, and coal, alongside oil and gas operations. The overweight position underscores the fund manager’s confidence in the global commodity demand outlook and BHP’s operational strengths compared to sector peers.

This sizeable allocation offers investors direct participation in commodity cycles and global economic trends. BHP’s diversified asset portfolio across multiple commodities and regions acts as a proxy for the broader resources sector. Given its material weighting, fluctuations in BHP’s share price and earnings will significantly impact the fund’s overall performance, making it a pivotal holding for investors tracking AASF returns.

Major Australian Banks Constitute 11.8% of Fund Exposure

The fund holds notable positions in Australia’s leading banks, with Commonwealth Bank of Australia (CBA) at 6.6% and National Australia Bank Ltd (NAB) at 5.2%, combining for 11.8% of the portfolio as of 30 June 2026. These institutions are key providers of retail and institutional banking, wealth management, and insurance services. Their combined weighting reflects the fund’s exposure to the domestic financial sector and Australian economic conditions, as banks remain sensitive to interest rates, credit demand, and housing market trends.

The fund’s preference for CBA and NAB, with Westpac Banking Corporation held at only 1.1% and no disclosed ANZ Bank position, suggests strategic selection based on valuation, dividend yield, or positioning. This banking allocation aligns with typical Australian equity funds, given the major banks’ significant ASX market capitalisation and central economic role.

Diversified Sector Exposure Across Mining, Industrials, and Consumer Stocks

Beyond the top three holdings, the Airlie Australian Share Fund maintains broad sector diversification. Mining and industrial exposure includes Rio Tinto Ltd (3.8%), Orica Ltd (3.4%), and BlueScope Steel Ltd (3.3%), complementing BHP’s position. Consumer discretionary stocks such as Aristocrat Leisure Ltd (4.6%), Goodman Group (2.9%), and News Corp (2.8%) add variety, while healthcare exposure is provided by ResMed Inc (2.9%) and Medibank Pvt Ltd (3.2%). This diversification strategy aims to mitigate concentration risk and capture returns across the Australian economy.

Smaller holdings in technology and growth sectors include Xero Ltd (2.0%) and Life360 Inc (0.9%), reflecting exposure to software and digital services. Insurance exposure is represented by Insurance Australia Group Ltd (2.9%), while retail and specialty retail positions like JB Hi-Fi Ltd (1.1%), Nick Scali Ltd (1.2%), and Guzman Y Gomez Ltd (1.2%) further diversify consumer sector exposure. This multi-sector approach balances defensive, cyclical, and growth attributes within the portfolio.

Cash Holdings Support Liquidity and Portfolio Flexibility

As of 30 June 2026, the Airlie Australian Share Fund held 2.3% of its portfolio in Australian dollar (AUD) cash, reflecting standard liquidity management for an actively managed equity fund. Cash reserves enable the fund to meet investor redemptions, capitalize on new investment opportunities during market dislocations, and maintain optionality amid market uncertainty or elevated valuations. The modest 2.3% cash allocation indicates a predominantly equity-focused deployment consistent with the fund’s active mandate to maximize attractive risk-return exposures.

Holding cash in AUD aligns with the fund’s Australian share mandate and investor base. For ETFs like AASF, effective cash management is essential to accommodate daily ASX trading and portfolio rebalancing. The 2.3% cash position provides sufficient liquidity for operational needs without significantly reducing equity exposure, particularly when the fund manager seeks to moderate risk or await compelling investment opportunities.

Magellan Asset Management’s Active Investment Approach in AASF

Magellan Asset Management Limited, operating the Airlie Australian Share Fund under the Magellan Investment Partners brand, is headquartered in Sydney at Level 36, 25 Martin Place. The fund’s portfolio composition reflects an active management style, with discretionary security selection based on fundamental analysis and valuation conviction. Holdings range from large-cap blue-chip stocks like BHP and CBA to smaller mid-cap companies such as Guzman Y Gomez Ltd and Nick Scali Ltd, demonstrating a broad market capitalisation approach.

The AASF’s structure as an active ETF combines the liquidity and intraday trading benefits of passive ETFs with active portfolio management. This hybrid model offers investors access to Magellan’s expertise alongside transparency and trading flexibility typical of exchange-traded products. Quarterly portfolio disclosures, such as this 30 June 2026 update, provide investors with regular visibility into holdings and alignment with investment goals and risk profiles.

Top 10 Holdings Represent Over Half the Portfolio

The fund’s top 10 holdings account for approximately 50.6% of the portfolio as at 30 June 2026. These include BHP Group (12.9%), CBA (6.6%), NAB (5.2%), Aristocrat Leisure (4.6%), Rio Tinto (3.8%), Macquarie Group (3.7%), SGH Limited (3.7%), Orica (3.4%), Medibank Pvt Ltd (3.2%), and BlueScope Steel (3.3%). This concentration reflects active management, with larger positions in securities offering compelling risk-adjusted returns and conviction.

The sector distribution within the top 10 spans financial services, mining, industrials, and consumer sectors, indicating intentional sector balance rather than unintended concentration. Such concentration is typical of active equity funds, contrasting with passive index trackers that spread exposure more evenly. Performance will be significantly influenced by these key holdings, affecting the fund’s relative returns versus benchmarks.

Strategic Exposure to Australian Economic Sectors and Themes

The portfolio’s composition highlights thematic exposures aligned with Australian economic trends. Mining and resources companies (BHP, Rio Tinto, Orica, and IGO Ltd) collectively exceed 21% of the portfolio, providing substantial sensitivity to global commodity prices vital to Australia’s export economy. Banking sector holdings (CBA, NAB, Westpac, and IAG) total about 13%, offering exposure to domestic credit cycles, housing markets, and interest rate movements. These allocations reflect traditional Australian equity fund structures but entail risks from commodity volatility and financial regulation.

Additional themes include consumer discretionary through Aristocrat Leisure and retail stocks, property and infrastructure via Goodman Group and other real estate holdings, and growth exposure through software and fintech companies like Xero Ltd. Healthcare positions such as ResMed Inc and Medibank add defensive qualities during downturns. This sector mix mirrors Australia’s economy, heavily weighted toward resources and financials, with growing services, technology, and consumer sectors.

Mid-Cap and Smaller Holdings Enhance Growth Potential and Diversification

The fund also holds numerous smaller positions below 2% each, providing diversification and growth opportunities. Mid-cap stocks such as Aspen Group (2.4%), Santos Ltd (2.4%), Ampol Ltd (2.2%), James Hardie Industries (2.2%), and Xero Ltd (2.0%) offer targeted sector exposure. These allocations reflect conviction in attractive risk-return opportunities that do not warrant larger stakes but contribute meaningfully to the portfolio.

Smaller holdings including Pinnacle Investment Management Group (1.9%), ALS LTD (1.7%), and Coles Group (1.3%) add exposure to alternative asset management, industrial services, and retail sectors. This diverse set of smaller positions indicates active stock-picking aimed at identifying undervalued securities or companies with catalysts for future growth. Collectively, these holdings demonstrate the fund manager’s thorough fundamental research and differentiated investment views.

Quarterly Disclosure Ensures Investor Transparency

The 28 July 2026 update represents the Airlie Australian Share Fund’s mandatory quarterly portfolio disclosure to the ASX, detailing holdings as at 30 June 2026. This requirement applies to all ASX-listed ETFs, promoting transparency about capital deployment and enabling shareholders to evaluate portfolio structure, concentration, and sector exposure. The disclosure was authorised by Kathy Molla-Abbasi, Company Secretary of Magellan Asset Management Limited, confirming the accuracy of the reported data.

Regular quarterly disclosures allow investors to monitor alignment with investment objectives, track portfolio changes, and assess the fund manager’s responsiveness to market and economic shifts. The timing coincides with the end of the Australian financial year, providing valuable data for performance attribution and understanding how portfolio adjustments influenced returns. This transparency fosters investor confidence and facilitates independent verification of holdings against fund mandates.