Bell Global Equities Fund, managed by Bell Asset Management, released its May investor update. A copy of the letter can be downloaded here. The global equity market continued its rally in May, driven by accelerating AI infrastructure spending and a stronger-than-expected earnings season. The Fund (Platform Class) returned 2.1%, underperforming the MSCI World ex-Australia Index's 4.5% return in May 2026. Information Technology holdings drove the positive return in the month, along with modest contributions from Health Care and Consumer Discretionary exposures. However, the portfolio underperformed compared to the benchmark, primarily due to the high returns from the benchmark's mega-cap technology and semiconductor stocks. In addition, please check the Strategy's top five holdings to know its best picks in 2026.
In its May 2026 investor letter, Bell Global Equities Fund highlighted LPL Financial Holdings Inc. (NASDAQ:LPLA). Based in San Diego, California, LPL Financial Holdings Inc. (NASDAQ:LPLA) offers an integrated platform of brokerage and investment advisory services. On July 8, 2026, LPL Financial Holdings Inc. (NASDAQ:LPLA) closed at $300.82 per share, reflecting a market capitalization of $24.99 billion. LPL Financial Holdings Inc. (NASDAQ:LPLA) posted a one-month return of 9.21%, while its shares lost 18.00% over the past 52 weeks.
Bell Global Equities Fund stated the following regarding LPL Financial Holdings Inc. (NASDAQ:LPLA) in its May 2026 investor update:
"In contrast, LPL Financial Holdings Inc. (NASDAQ:LPLA) was one of the most notable detractors during May, with the shares declining as concerns around structural fee pressure and potential AI driven disruption continued to weigh on the independent wealth management sector. The central fear relates to automated cash disintermediation, whereby tokenized and AI-centric platforms could eventually automate the movement of idle client sweep cash into higher-yielding alternatives, threatening what is the most profitable earnings stream for LPL and its peers client cash revenue representing approximately 30% of gross profit. The emergence of these technological threats, alongside ongoing industry-wide scrutiny of sweep program yields, triggered a broad de-rating across the sector, while lingering uncertainty around the final retention of onboarding Commonwealth advisors added a stock specific overhang. We believe these concerns are overdone. The average client sweep balance of approximately US$5,000 is largely operational cash with little economic incentive to optimize, and advisors, rather than clients, remain the gatekeepers of these balances. LPL also retains multiple offsetting levers, including custody platform fees and fee restructuring already underway, that materially mitigate the earnings impact even under severe repricing scenarios. Meanwhile, the core franchise continues to strengthen, with organic net new asset growth recovering and expected to accelerate as recruiting refocuses post Commonwealth and structural advisor migration toward the independent channel persists. Trading at approximately 11x forward earnings versus a longer-term average valuation closer to 15x, we maintain conviction in the longer-term outlook and view the valuation as attractive at current levels, particularly in the context of the mid-teens plus earnings growth that we forecast moving forward."