In April, the HNW Core Portfolio gained +2.25%, slightly ahead of the benchmark return of 2.18% in what was a very volatile month. The dominant theme was the confusion surrounding the Iran conflict, with energy prices gyrating wildly on a daily basis depending on whether the Strait of Hormuz is open. Surprisingly, oil finished the month down -3.6% at US$114/bl, though this reflects a timing issue. Over the month, a range of portfolio companies, including Woodside, Ampol, Mineral Resources, Newmont, Whitehaven and Transurban, gave uniformly positive quarterly trading updates.
Positions in Mineral Resources (+19%), Macquarie Bank (+16%), Atlas Arteria (+12%), Medibank Private (+8%) and Dalrymple Bay (+7%) added value. On the negative side of the ledge, CSL (-12%) slid on no news, and our energy positions, Whitehaven (-9%) and Woodside (-4%), gave back some of March’s gains. We remain happy to have a large Portfolio weight towards energy as we see that the full impacts of restricted energy flows are yet to be seen in global economies and that a lasting peace process is unlikely to be quickly achieved.
In April, the HNW Income Portfolio had a solid month, up 2.75% and ahead of its blended benchmark return of 1.39%. We remain pleased with the consistent performance and low volatility of HNW Income Portfolio. Similar to the Core Portfolio, the Income Portfolio benefited from holdings in Macquarie Bank (+16%), Medibank Private (+8%), Atlas Arteria (+12%) and Dalrymple Bay (+7%). On the negative side of the ledger, positions in Whitehaven (-9%), Woodside (-4%) and Amcor (-5%) hurt performance.
Full Reports will be issued shortly.
