In July, the HNW Australian Equity Portfolio had a pleasing month up +2.74%, ahead of the ASX 200 TR (ex LPT) return of 2.29%. There was minimal company-specific news due to companies being in blackout before releasing their six-month financial results in August. The key news over the month was the easing of inflation, which is likely to prompt the RBA to cut rates when it meets next Tuesday. Globally, Trump was again active on tariffs, releasing a frenzy of deals, adjustments, backflips, side-deals; all of which are now largely ignored by the markets – the cratering markets of March and April seem so far away.

Over the month, positions in Mineral Resources (+32%), WhiteHaven (+19%), CSL (+13%), Woodside (+13%) and Deterra (+10%) added value, with the first two names benefiting from positive quarterly production reports that showed production at the top end of guidance and costs below. On the negative side of the ledger, Macquarie (-5%), Suncorp (-3%) and Transurban (-1%) hurt performance. Bapcor (-22%) fell over the largely unexplained exit of three directors from the auto-parts supplier’s board on the 24th July. Atlas was unsuccessful in our attempt to have a one-on-one meeting with CEO McKay to get a better explanation of what happened, as the company stated that they are in blackout mode until the results are announced, although they have offered a meeting with the CEO after the results. While unsatisfactory, we will delay our investment decision on BAP until after this meeting, mindful of the fact that the three departing directors were the ones who rejected the private equity takeover offer one year ago at $5.40.

The air started to come out of the CBA (-4%) balloon, which benefited relative performance with CBA, the Portfolio’s third-largest underweight after our sell-down in June.

In June, the HNW Australian Equities Income Focus Portfolio had a consistent month +1.96%, ahead of its blended benchmark of +1.49%. Over the month, positions in WhiteHaven (+19%), Deterra (+10%), Woodside (+13%), Dyno Nobel (+9%) and Region (+6%) added value.

As expected, no companies declared dividends in July; however, August is expected to be a healthy month for income in the Portfolio.