A weaker month for the HNW Portfolios, excluding the HNW Equities Concentrated. Overall, we were happy with the reporting season, as our Portfolio companies all increased dividends strongly.
In August, the HNW Core Portfolio gained +0.48%, trailing the benchmark’s return of +1.54%. Positions in CSL (+39%), Newmont (+31%), Whitehaven (+22%), Min Res (+11%) and Ampol (+8%) added value. On the negative side of the ledger, JB Hi-Fi (-17%), Sonic Healthcare (-10%) and QBE Insurance (-8%) hurt performance, along with no exposure to gold and BHP (+10%), which is now considered an AI stock and trading on a PE of 25x thanks to expected demand for metals like copper in the hundreds of data centres planned to be built (but not all funded) over the next few years.
We were pleased with the dividend performance in August, with the HNW Core Portfolio seeing a weighted increase of +32% in dividends paid to our investors in August 2025, and three new on-market buybacks announced. During reporting season, Atlas closely monitors company dividends, particularly their direction. While our investors appreciate income, we closely examine dividends because dividend increases are a sign of earnings quality and no near-term company issues. A far better indicator than an optimistic outlook statement given by a CEO on results day.
In July, the HNW Income Focus Portfolio had its first weaker month in a long time, down 3.81% and behind its blended benchmark return of 1.08%. Positions in Whitehaven (+22%) and Ampol (+8%) added value. On the negative side of the ledger, Arena (-27%), Sonic Healthcare (-10%), and Westpac (-9%) weighed on performance.
While we were disappointed with the final scoreboard posted by the HNW Income Portfolio for August, Atlas was very happy with the dividend increases that our investors will see credited to their accounts in September. In August, the Portfolio saw an average distribution increase of 37% compared to last year.
Full Reports will be issued shortly.
