Active Income Portfolio

For those seeking a sustainable income strategy, with a difference.

9.43% Returns pa since inception to 31-03-22

About the Active Income Portfolio

Our philosophy at Market Matters has always been around active management, and our income portfolio stays true to label. Combining an active approach to income producing equities, ETFs and listed Income Securities such as Hybrids, the portfolio will satisfy those looking for sustainable income with significantly less volatility than the market.

**Portfolio Performance** UPDATED 30/04/2022 19:00
Portfolio	1M	3M	6M	1Y	3Y pa	ITD pa*
Active Income Portfolio	-0.35%	7.18%	6.50%	12.11%	10.65%	9.06%
Target 7%	0.58%	1.75%	3.50%	7.00%	7.00%	7.00%
Difference	-0.93%	+5.43%	+3.00%	+5.11%	+3.65%	+2.06%

* Inception date 05/07/2017

**Portfolio Holdings** 20 MINUTES DELAYED trade now
COMPANY CODE	STOCK NAME	WEIGHT (%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	LAST PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
ANZPI	ANZ Capital Notes 6	4	Low	Long	8/07/2021	100	0.00	2.4	-97.60
APA	APA Group	4	Low	Medium	29/09/2021	8.59	11.63	0.25	38.30
BHP	BHP Group	8	Low	Long	11/12/2019	38.56	42.76	6.63	28.09
BOQ	Bank Of Queensland	6	Moderate	Medium	04/11/2021	8.7	6.85	0.31	-17.70
CBA	Commonwealth Bank	6	Moderate	Medium	13/03/2020	61.33	93.00	8.55	65.58
CBAPG	Commonwealth Bank Hybrid	5	Low	Medium	09/04/2018	100	0.00	16.84	-83.16
CWNHB	Crown Resorts Hybrid	4	Moderate	Medium	26/05/2021	98.26	0.00	3.02	-96.93
GEM	G8 Education	3	Moderate	Medium	24/02/2022	1.29	1.09	0.04	-12.40
GSBG25	Aust. Govt. Bond 3.25% 21.04.2025	4	Low	Long	11/05/2022	101.2	0.00		-100.00
IFL	Insignia Financial	5	Moderate	Medium	7/10/2020	3.59	2.82	0.4	-10.31
MFG	Magellan Financial Group	3	Moderate	Medium	11/11/2021	33.85	13.61	1.57	-55.16
MTS	Metcash	5	Moderate	Medium	9/12/2020	3.5	4.25	0.26	28.86
MXT	MCP Master Income Trust	5	Low	Long	9/10/2017	2	1.99	0.43	21.00
NABPF	National Bank Hybrid	5	Low	Long	21/03/2019	100	0.00	14.51	-85.49
OZBD	BetaShares Australian Composite Bond ETF	5	Low	Long	13/04/2022	46.2	0.00	0.21	-99.55
SIQ	SmartGroup	5	Moderate	Medium	25/02/2020	6.98	6.20	1.43	9.31
SGP	Stockland	4	Moderate	Medium	13/04/2022	4.18	3.67		-12.20
SSM	Service Stream	3	High	Medium	20/01/2021	1.77	0.87	0.04	-48.59
TCL	Transurban Group	4	Moderate	Medium	2/04/2020	11.82	14.41	0.53	26.40
TLS	Telstra	7	Moderate	Medium	07/09/2020	3.43	3.89	0.19	18.95
WES	Wesfarmers	4	Moderate	Long	03/05/2022	49.2	42.67		-13.27

Portfolio cash position: 1%

**Recent Sales** UPDATED 15/06/2022 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
WDS	Woodside	1.45	High	Medium	15/06/2022	29.76	32.54	2.3	17.05
IGL	IVE Group Ltd	3	Moderate	Medium	11/05/2022	2.28	1.8	0.66	7.89
AGL	AGL Energy	3	Moderate	Long	03/05/2022	5.35	8.38	0.16	59.63
NSR	National Storage REIT	4	Moderate	Medium	13/04/2022	2.04	2.65	0.09	34.31
XARO	ActiveX Ardea Real Outcome Bon	5	Low	Long	13/04/2022	26.47	25.28	1.6	1.55
AWC	Alumina Ltd	4	Moderate	Medium	24/02/2022	2.2	1.95		-11.36
DXS	Dexus/AU	4	Low	Long	25/11/2021	9.2	11.27	0.23	25
IAG	Insurance Australia Group Ltd	6	Moderate	Medium	11/11/2021	4.69	4.47	0.13	-1.92
NAB	National Australia Bank Ltd	6	Moderate	Long	4/11/2021	18.71	28.7	1.35	60.61
CBA	Commonwealth Bank of Australia	1	Moderate	Medium	29/09/2021	61.33	102.63	6.05	77.21
IFL	IOOF Holdings Ltd	1	Moderate	Medium	29/09/2021	3.59	4.34	0.23	27.3
NAB	National Australia Bank Ltd	1	Moderate	Long	29/09/2021	18.71	27.22	1.35	52.7
TLS	Telstra Corp Ltd	3	Moderate	Medium	13/09/2021	3.19	3.91	0.16	27.59
RIO	Rio Tinto Ltd	5	Moderate	Medium	09/06/2021	94.42	124.8	14.61	47.65
AMPPB	AMP Ltd	4	Moderate	Medium	26/05/2021	100	97.61	5.94	3.55
SUL	Super Retail Group Ltd	4	Moderate	Medium	05/05/2021	11.95	12.1	0.47	5.19
WES	Wesfarmers Ltd	5	Moderate	Medium	14/04/2021	37.3	54.98	2.61	54.4
NBI	NB Global Corporate Income Tru	5	Low	Long	14/04/2021	2	1.86	0.17	1.5
NAB	National Australia Bank Ltd	3	Moderate	Long	16/03/2021	18.71	26.27	0.49	43.03
ABP	Abacus Property Group	4	Moderate	Medium	10/03/2021	3.9	2.7	0.09	-28.46
SYD	Sydney Airport	4	Moderate	Long Term	20/01/2021	5.63	6.1		8.35
CLW	Charter Hall Long WALE REIT	4	Low	Long Term	20/01/2021	4.85	4.5	0.15	-4.12
MQGPD	Macquaire Group	5	Low	Long Term	10/11/2020	100	104.8	7.38	12.18
PPT	Perpetual	3	High	Medium Term	7/10/2020	42.89	29	7.15	-15.71
SUL	Super Retail Group	3	High	Medium Term	7/09/2020	6.11	10.6	0.28	78.07
WBC	Westpac	7.5	Moderate	Medium Term	27/08/2020	27.88	17.56	1.14	-32.93
WPL	Woodside Petroleum	4	Moderate	Medium Term	12/08/2020	34.6	20.41	1.93	-35.43

OPINION
ACTION

Recent Opinion for the Income Portfolio

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:

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...

29/06/2022 09:16

BHP Group (BHP) $42.98

BHP is now well and truly the “Big Australian” as it used to be referred to back on the old trading floor days when the chalkies used to affectionately call it the “Hills” – following the consolidation of its dual listing BHP now represents around 10% of the ASX200. For fund managers who are benchmarked to the index calling BHP correctly month to month will have a significant impact on their performance – not always an easy job when its currently swinging around 10% week to week.

28/06/2022 09:39

Magellan Financial Group (MFG) $13.82

MFG has kept falling over the last 12 months as the news around Hamish Douglass, hefty withdrawals and poor performance have weighed on the stock. To put things in perspective, FUM has fallen over 40% from its peak last August and more appears likely. The stock is now cheap if you believe Kirsten Morton can steady the ship but like an oil tanker it will take time to change direction, and in our opinion, this is one for the aggressive investors or traders until further notice

28/06/2022 09:26

Commonwealth Bank (CBA) $93.74

The Australian banks have been hit hard since some influential analysts reined in their forecasts for the “Big 4”, even after the recovery over the last few days the majors remain down more than 10% for June. MM is mildly underweight the sector which feels ok at present but using CBA as a yardstick we currently would be an accumulator around $85 and a seller in the $95 region.

27/06/2022 17:16

Metcash (MTS) $4.30

MTS +4.12: The often forgotten poor cousin of Woolies & Coles reported FY22 earnings today that were ahead of expectations. Sales & earnings were a beat for the full year while sales growth of +8.6% to start 1H23 was also solid. All food divisions did well with market share growth evident while hardware enjoyed a strong period across both trade & DIY despite rising inflation, weather, tight labour & product supply. The dividend of 21.5cps...

24/06/2022 17:18

Crown Hybrids (CWNHB) $101.85

CWNHB +1.99%: As part of the Blackstone takeover of Crown which is now completing, Crown today announced the redemption of the CWNHB at the price of $102.75 which represents the $100 face value plus deferred interest payments. The outcome is what we expected and a good result for the Market Matters Income Portfolio having bought the notes below par a year ago. We will now look to redeploy the 4% of the portfolio allocation held in this position.

22/06/2022 09:28

Active Income Portfolio

The portfolio fell -1.67% for the week while cash remains at ~1%. Magellan (MFG) +6.79% the biggest winner from an absolute perspective although our position is a small one, while Wesfarmers (WES) +2.17% & G8 Education (GEM) +1.92% recovered some recent losses, the biggest drag was novated leasing and salary packing provider Smartgroup (SIQ) which fell by -18.55% following the loss of a contract and unrelated ~8% earnings downgrade – we covered SIQ here

22/06/2022 09:28

MCP Master Income Trust (MXT) $1.87

We hold this security in the Income Portfolio as a high yielding, defensive fixed-income position that has provided consistent returns since we invested at $2 in the initial listing back in 2017. Recently, there has been some selling pressure pushing the price of the trust down to $1.70, which equates to a ~15% discount to its underlying net asset value of ~$2. Metrics collectively manages around ~$7bn, with around $1.8bn...

22/06/2022 09:25

Flagship Growth Portfolio

The MM Flagship Growth Portfolio slipped -2.65% last week inline with the market while our cash position remains at 1%. Newcrest Mining (NCM) managed to rally +2.3% along with Bank of Queensland (BOQ) +1.4% and TPG Telecom (TPG) +1%, the losers corner was a little more crowded following the markets decline with HUB24 (HUB) -11%, Xero (XRO) -7.8% and BHP Group (BHP) -7.4% catching our attention for the wrong reasons.