In November, the HNW Australian Equity Portfolio gained +3.8% matching the ASX200 TR +3.78%, a satisfactory outcome for a lower beta income-focused portfolio. Global markets, particularly the S&P500 (+6%), liked the look of another 4 years of Trump. Domestically, the February 2025 RBA rate cut looks shaky on the back of a resilient labour market, though inflation continues to trend downward. On the stock front, the November bank reporting season was solid as expected, with low bad debts, steady profit margins and capital returns to shareholders.
Over the month, performance was helped by QBE Insurance (+16%), JB Hi-Fi (11%), Suncorp (10%), Wesfarmers (+7%) and Incitec Pivot (+7%) added value. CBA was a strong performer up 11%, but we reduced the position to an underweight over the month. On the negative side of the ledger Mineral Resources (-15%) was weak on uncertainty around the senior leadership team along with WhiteHaven (-3%) and CSL (-2%) the latter two on no new news.
November was a solid month for income with five companies declaring dividends (Amcor, Westpac, ANZ, Macquarie Bank and Incitec Pivot).
The HNW Equity Income Portfolio gained +3.9% ahead of the Portfolio’s Blended benchmark of +2.2%. Over the month, positions in QBE Insurance (+16%), Commonwealth Bank (+11%), JB Hi-Fi (+11%), Suncorp (+10%), and Wesfarmers (+7%) added value. On the negative side of the ledger, Mineral Resources (-15%), Whitehaven Coal (-3%), and Atlas Arteria (-2%) detracted value. The bank reporting season and trading updates across November have shown that the Portfolio is in a strong position heading into 2025.
Full report to follow shortly.
