29/06/2022 09:27

Current thinking around the MM Income Portfolio

We’re contemplating a number of amendments in the Income Portfolio as we position for what comes next.  Today’s portfolio update will simply detail our current thinking, not yet our planned actions:   

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29/06/2022 09:26

Active Income Portfolio

The portfolio added +3.58%% for the week while cash remains at ~1%. APA Group (APA) +13.17% was strong, a move like that for a regulated utility is big, particularly when markets were rallying, normally APA enjoys a safe-haven bid, while Stockland (SGP) +11.95% & Service Stream (SSM) +9.09% were also performers. Metcash (MTS) reported FY22 results during the week and added 6.63% although...

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15/06/2022 09:29

Active Income Portfolio

The portfolio was down -4.14% for the week with cash at 1%.  The banks weighed with Bank of QLD (BOQ) down -11.26%, Commonwealth Bank (CBA) off -10.55% while G8 Education (GEM) also fell -9.57%. It was slim pickings on the other side of the ledger with only APA Group (APA) +2.68%, Woodside (WDS) +0.30% and the Crown Hybrid (CWNHB) +0.20% printing positive returns. Hybrids fell during the week as the market...

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01/06/2022 09:50

Active Income Portfolio

The portfolio slipped -0.26% for the week while cash sits at 1%. We saw a rotation out of more defensive stocks into ‘growthier’ names with APA Group (APA) down -1.81% while the banks fell, CBA lost -0.69% while Bank of QLD (BOQ) dropped -0.79%. On the flipside, strength in Magellan (MFG) +6.67% was a positive as was Service Stream (SSM) +5.03% & Insignia (IFL) +3.43% while some slight weakness in the Hybrid space was also...

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31/05/2022 09:12

APA Group (APA) $11.45

Natural gas pipeline operator and energy infrastructure business APA like all in the space have recognised the deep need to transition towards renewables although they will need further work to grow with competitors on this front. Rising interest rates is not great for APA if they want to raise money for other infrastructure assets but for now they are well positioned as 99% of their contracted revenue are linked to...

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18/05/2022 09:35

APA Group (APA) $11.42

APA has been a solid performer in the Income Portfolio sitting on a paper profit of ~35%, which for a regulated utility involved in gas pipelines where revenue growth is set at low levels is a good outcome, however, we ask ourselves what is going to drive appreciation from here?

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18/05/2022 09:34

Active Income Portfolio

The portfolio added  +0.32% for the week while cash remains at ~2%. Commonwealth Bank (CBA) was a strong performer adding +3.36% as they highlighted their leadership in digital banking with a bunch of innovative developments (CBA is so far ahead of the others on this), while APA (Group (APA) +3.25% & Stockland (SGP) +1.56% were also strong. Magellan (MFG) fell -8.25% to be the biggest drag.

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27/04/2022 09:19

Active Income Portfolio

The portfolio lost  -2.23% for the week with cash at 3%.  While APA Group (APA) +2.97% & Transurban (TCL) +2.55% proved their defensive qualities, it wasn’t enough to offset the -14.12% decline by BHP, our largest portfolio weighting (~8%), although it is still around 300bps below the benchmark which did help relative returns. With the ASX 200 down by over 3% for the week, it was pleasing...

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30/03/2022 09:34

Active Income Portfolio

The portfolio added 1.40% for the week while cash remains at ~5%.  The largest position in the portfolio is BHP with an ~8% weighting and it was also the best performer for the week up another 8.98%, trading back up above $50. Supporting BHP was Service Stream (SSM) +5.94% that we discussed last week and APA Group (APA) +5.27% having broken out through $10, certainly, a strong move from an infrastructure...

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23/02/2022 17:31

APA Group (APA) $10.01

APA -1.38%: A strong inline result is a good way to describe the APA result today even through underlying profit was a strong beat to consensus. The beat came from a lower tax expense however offsetting that marginal positive was an increase in their capex guidance to $1.4bn over FY22-24. The interim dividend of 25cps had been pre-announced however they did reconfirmed FY22 DPS guidance of 53cps. We own APA in the Income Portfolio and remain happy holders collecting a ~5% yield.

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