A very volatile month dominated by Trump’s ever-changing announcements on Iran, with markets falling on his plans “blow up desalination plants in Iran if no deal reached” or “obliterate Iranian oil and energy sites if it refuses a deal to end the war”. Conversely, we saw sharp albeit temporary rallies over the month when Trump announced that the “US was in serious discussions with the Iranian regime to end military operations” and that “Iran had sent the US a “present” that was oil and gas-related“. Given that Iran’s response to these supposed peace negotiations was to send rockets to hit targets in Israel and the Gulf, one must question the truthfulness of the US President.
Most global markets declined by between -7% and -11% in March, and while the volatility was frustrating, we are happy with how the Portfolio is positioned, with a heavy weighting to energy. We see that despite occasional market optimism, there are no quick fixes to the current situation.
The HNW Core Portfolio declined by -2.60%, significantly ahead of the ASX 200, which fell -7.15%, proving quite defensive in a tough month. Positions in Ampol (+19.6%), Woodside (+23.8%), WhiteHaven (+18.5%) and Suncorp (+10.4%) added value. On the negative side of the ledger, Amcor (-17%), Sonic (-14%), and Mineral Resources (-12%) weighed on performance. Income was strong with six Portfolio companies declaring dividends. Portfolio cash is starting to build, with dividends hitting client accounts over the past week and next week as well.
In February, the HNW Income Portfolio had a solid month, down 1.33% and ahead of its blended benchmark return of -3.28%, in a month when there were few places to hide. Similar to the Core Portfolio the HNW Income Portfolio benefiting from holdings in Ampol (+19.6%), Woodside (+23.8%), WhiteHaven (+18.5%) and Suncorp (+10.4%), with Amcor (-17%), Sonic (-11%), JB Hi-Fi (-12%) and ANZ Bank (-10%) detracting from performance. Income was also strong in March for the HNW Income Portfolio, with eight Portfolio companies declaring dividends.
Full Reports will be issued shortly.
