The telecommunications sector is made up of a handful of companies but the most substantial is Telstra with a market cap of more than $60 billion. Telstra presently makes up more than 4% of the ASX300 so it has the opportunity to be a meaningful positive or negative contributor to portfolio returns. It was a great performer between 2011 and late 2015, rising from below $3 per share to almost $7, in addition to paying out 28-30c each year in dividends. Since then it’s come off sharply: Telstra is now back close to $5 and signs of stress have emerged. Alphinity’s portfolios have been underweight the sector since September 2015.