In October, the HNW Australian Equity Portfolio declined by -1.8%, trailing the ASX200 TR -1.31%. Global markets retreated between -1% and -3% in October on concerns about the US election, with commodities volatile on opaque indications of what the purported Chinese stimulus plan may actually look like. In Australia, the key news was the AGM season, during which companies gave trading updates.
Business conditions over the quarter were mixed with travel (Flight Centre -29%), high-end bathrooms (Reece -19%) and groceries (Woolworths -10% & Metcash -15%) weaker. Conversely, JB Hi-Fi (+3%), Hub24 (+18%) and Qantas (+9%) all gave positive trading updates that were ahead of market expectations. Other news over the month was a drip feed of negative news around two founder-led companies WiseTech (-14%) and Mineral Resources (-24%), which saw share prices falling not due to operational issues but due to the actions of their founders both of which are transitioning out of the business.
Over the month, performance was helped by Commonwealth Bank (+5%), QBE Insurance (+4%), JB Hi-Fi (+3%) and Amcor (+2%). Not owning the major miners helped performance over the month, with BHP (-7%) and Rio (-8%) giving up gains made in the final days of September. On the negative side of the ledger, performance was hurt by Min Res (-24%), Ampol (-8%), Woodside (-5%) and Deterra (-8%).
Full report to follow shortly.
