Overall, a pleasing month for the HNW Portfolios in a relative sense, with both portfolios demonstrating expected defensive characteristics in a volatile month. November was the weakest month of 2025 for the ASX since the Trump tariffs in February/March, at one stage down -5.5%, before rallying to finish “only” down -2.66%.
In November, the HNW Australian Equity Portfolio declined by -1.25% ahead of the benchmark’s fall of -2.66%. Interest rate expectations were the key driver of markets in November, with a Melbourne Cup Day rate cut by the RBA evaporating amid higher inflation from electricity subsidies rolling off and stronger US employment data suggesting that a cut in December was less likely. This macro news overshadowed the banks’ November reporting season, which was mostly positive.
Over the month, the Portfolio saw significant dispersion in returns, with positions in Sonic Healthcare (+10%), Amcor (+10%), Dyno Nobel (+6%), CSL (+4%) and Transurban (+3%) adding value, mainly after these companies gave positive quarterly trading updates over the month and gave 2026 profit guidance. On the negative side of the ledger, Suncorp (-10%), Macquarie Bank (-9%), Whitehaven Coal (-4%), ANZ (-3%) and QBE Insurance (-3%) hurt performance. The bubble in Commonwealth Bank (-11%) has well and truly been pricked, though we are likely to wait a little before repurchasing stock sold in mid-2025 at higher levels.
Income was solid over the month with five companies in the Portfolio (Macquarie, ANZ, Westpac, Amcor & Dyno) declaring dividends, which will be paid to investors in December.
In November, the HNW Australian Equities Income Focus Portfolio declined by -1.65% finishing behind the blended benchmark of -1.06% mainly due at the Portfolio’s interest-rate sensitive listed property trust holdings. Positions in Sonic Healthcare (+10%), Amcor (+10%), Dyno Nobel (+6%) and Transurban (+3%) added value with Suncorp (-10%), Macquarie Bank (-9%) and Dexus Industrial (-4%) hurting performance.
Income was similarly strong with the same five stocks mentioned above held by the HNW Australian Equity Portfolio declaring dividends.
Despite all the doom and gloom in the financial media, we look like we are heading for a normal year for Australian equity investors with returns around ~ 9% in 2025.
Full reports to follow shortly.
