During May, the HNW Australian Equity Portfolio gained +3.86%, behind the ASX 200 TR return of +4.2%. Global markets were stronger in May after three negative months under Trump and tariff fatigue setting in amongst investors. In Australia the key news was a Federal Election, RBA cutting rates and a generally positive banks reporting season. Over the month positions in Dyno Nobel (+18%), Macquarie Bank (+13%), WhiteHaven Coal (+11%), Ampol (+8%), MinRes (+8%) and QBE (+7%) added value. On the negative side of the ledger performance was hurt by Lotteries (-2%), CSL (-2%), Amcor (-1%) and Transurban (+1%).
Our underweight in CBA (+6%) continues to hurt, though it is a prudent move to reduce our exposure to the very expensive bank that currently trading on a PE of 30x with a mere 2.56% yield. Despite having a 9% weight to CBA, this is the Portfolio’s 3rd largest underweight with CBA’s ASX200 weight now 11.6%!
In May the HNW Australian Equities Income Focus Portfolio had a solid month +4.47% ahead the behind its blended benchmark of +2.38%. Over the month positions in Dyno Nobel (+18%), Macquarie Bank (+13%), WhiteHaven Coal (+11%), Dexus Industrial (+10%) and Charter Hall Retail (+5%) added value. Our holdings in Lotteries (-2%) and Amcor (-1%) dragged on performance.
Income was a feature over the month with Macquarie, Westpac, ANZ and Amcor all declaring dividends – these will hit our investors accounts late in June.
