Why should advisers retain a reasonable exposure to Australian equities?

Australian equities have delivered consistent, compounding returns over many decades. There are a lot of advantages to investing domestically, including the tax advantages of franked didends and the quality of the businesses with the asset class.

What are some of the quality businesses listed in Australia?

Australia is rich in quality businesses. There are global leaders domiciled in Australia, such as CSL, Brambles and James Hardie, that have high barriers to entry and growth potential.

How do you identify investment opportunities in Australian equities?

The initial focus should be on avoiding investments that could lead to losses. This includes steering clear of stocks with business model challenges, overstretched balance sheets, and significantly overvalued stocks. By avoiding potential pitfalls and gaining exposure to asset classes that generate compound returns, investors are more likely to achieve positive outcomes. Once the risks are mitigated, the next step is to identify high-quality businesses within the market.

WealthLeaders eXchange interview with Richard Maynier

17 April 2025

Richard Maynier, Portfolio Manager, Australian Equities at Northcape Capital, the investment manager for Warakirri’s range of Australian equities funds, sits down with Tim Townsend, Director at WealthLeaders eXchange, to discuss the current investment landscape for Australian equities and where the team are finding opportunities.

For more information on Warakirri’s Australian equities offerings, visit Our Funds page.

Important Information

Recorded on 25 March 2025 and produced by WealthLeaders eXchange.

The information herein is re-published by Warakirri Asset Management Limited (ABN 33 057 529 370) (AFSL 246782) (Warakirri) and represents Northcape Capital Pty Ltd’s ABN 53 106 390 247 AFSL 281767 (Northcape) view on economic and market topics. The views and opinion of Northcape is provided for informational purposes only and does not take into account your personal objectives, financial situation or needs and does not constitute a recommendation to buy, sell, or hold any security, and should not be construed as investment advice. The views, and opinions expressed are believed to be accurate at the time of publishing and are subject to change without notice. While the information herein has been prepared with all reasonable care, Northcape and Warakirri accept no responsibility or liability for any errors, omissions or misstatements however caused. The economic and market forecasts presented herein are for informational purposes as at the date published. There can be no assurance that the forecasts will be achieved. Past performance is not a reliable indicator of future performance.

Northcape is the investment manager of the Warakirri Concentrated Australian Equities Fund (ARSN 642 392 041) and Warakirri Ethical Australian Equities Fund (ARSN 642 393 299) that are issued by Warakirri. This information does not take into account an individual’s personal objectives, financial situation or needs, and is not an offer or solicitation to enter into an agreement. Investors should not rely on the information contained herein and should first refer to the Fund’s respective Product Disclosure Statement (PDS), Additional Information Booklet and the Target Market Determination (TMD) for a description of the target market and seek independent advice from their financial adviser. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Information for the Fund is available at www.warakirri.com.au or by calling 1300 927 254.

WealthLeaders eXchange interview with Richard Maynier

Northcape Capital

Expert Investment Partner