A pleasing month for the HNW Portfolios in a broad market sell off.
In September, the HNW Core Portfolio showed its expected defensive characteristics, declining only 0.66% and significantly outperforming the benchmark, which fell -2.42%. Rising rates weighed on high-PE growth stocks, and commodity prices (ex-oil) were weaker. We are quite pleased with the one-year number, though this is assisted by rolling off a weaker Sept 25 and adding solid Sept 26.
CSL (+9%), Dyno Nobel (+9%), Dalrymple Bay (+8%), Ampol (+7%), Suncorp (+6%), and QBE (+5%) added value. On the negative side of the ledger, Min Res (-18%) hurt performance on weaker lithium prices, along with Transurban (-7%) and Whitehaven (-9%), which surprised us given thermal was flat in September and met coal was only down slightly.
Income was solid over the month, with eight portfolio companies going ex-dividend and cash hitting our investors’ accounts over the next few weeks.
In September, the HNW Income Focus Portfolio held its ground, declining by a minuscule 0.01% and also outperforming the blended benchmark return of -0.90%. Positions in Dyno Nobel (+9%), Dalrymple Bay (+8%), Ampol (+7%), Suncorp (+6%) and QBE (+5%) added value. On the negative side of the ledger, Amcor (-4%), Transurban (-7%) and Whitehaven (-9%) detracted from performance.
Income was similarly solid over the month, with eight portfolio companies going ex-dividend, with the cash hitting our investors’ accounts over the next few weeks.
Full Reports will be issued shortly.
