Active Income Portfolio

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

8.27% Returns pa since inception to 31-12-21

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 31/12/2021 19:00
Portfolio	1M	3M	6M	1Y	3Y pa	ITD pa*
Active Income Portfolio	2.30%	0.33%	3.12%	12.39%	10.96%	8.27%
Target 7%	0.58%	1.75%	3.50%	7.00%	7.00%	7.00%
Difference	+1.72%	-1.42%	-0.38%	+5.39%	+3.96%	+1.27%

* Inception date 05/07/2017

**Portfolio Holdings** UPDATED 18/01/2022 17:00 trade now
COMPANY CODE	STOCK NAME	WEIGHT (%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	LAST PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
AGL	AGL Energy	3	Moderate	Long	25/11/2021	5.35	7.35		37.38
ANZPI	ANZ Capital Notes 6	4	Low	Long	8/07/2021	100	103.12	1.64	4.76
APA	APA Group	4	Low	Medium	29/09/2021	8.59	10	0.25	19.32
AWC	Alumina Ltd	4	Moderate	Medium	13/09/2021	2.2	2.09		-5
BHP	BHP Group Ltd	8	Low	Long	11/12/2019	37.31	46.7	5.13	38.92
BOQ	Bank of QLD Ltd	6	Moderate	Medium	04/11/2021	8.7	8.27		-4.94
CBA	Commonwealth Bank of Australia	6	Moderate	Medium	13/03/2020	61.33	100.79	6.05	74.21
CBAPG	Commonwealth Bank Hybrid	5	Moderate	Medium	9/04/2018	100	104.5	15.09	19.59
CWNHB	Crown Resorts Ltd	4	Moderate	Medium	26/05/2021	98.26	97.6	3.02	2.4
IFL	Insignia Financial	5	Moderate	Medium	7/10/2020	3.59	3.59	0.23	6.41
IGL	IVE Group Ltd	3	Moderate	Medium	18/06/2018	2.28	1.76	0.54	0.88
MFG	Magellan Financial Group	3	Moderate	Medium	11/11/2021	33.85	19.98		-40.97
MTS	Metcash Ltd	5	Moderate	Medium	9/12/2020	3.5	4.3	0.25	30
MXT	MCP Master Income Trust	5	Low	Long	9/10/2017	2	2.09	0.39	24
NABPF	National Bank Hybrid	5	Low	Long	21/03/2019	100	107.8	12.45	20.25
NSR	National Storage REIT	4	Moderate	Medium	5/05/2021	2.04	2.59	0.09	31.37
SIQ	SmartGroup Corp Ltd	5	Moderate	Medium	25/02/2020	6.98	7.36	0.73	15.9
SSM	Service Stream Ltd	3	High	Medium	20/01/2021	1.77	0.85	0.04	-50
TCL	Transurban Group	4	Moderate	Medium	2/04/2020	11.82	13.22	0.53	16.33
TLS	Telstra Corp Ltd	5	Moderate	Medium	7/09/2020	3.19	4.26	0.16	38.56
XARO	ActiveX Ardea Real Outcome Bon	5	Low	Long	21/10/2019	26.47	25.32	1.49	1.28

Portfolio cash position: 4%

**Recent Sales** UPDATED 06/12/2021 08:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
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

21/01/2022 09:23

AGL Energy Ltd (AGL) $7.45

AGL has been a star performer in 2022 which has generated a significant paper profit in our Active Income Portfolio in just 2-months. The big question being is it just another bounce within an awful bear market or is AGL finally turning the corner? Last year the company said it plans to split in two with the “new fresh” AGL focused on energy retailing...

19/01/2022 17:16

BHP Group (BHP) $46.56

BHP -0.3%: the Big Australian was out with their December Quarter update today highlighting operations for the first half which were largely as expected. Where it mattered in iron ore BHP hit the numbers, up 1% QoQ and maintaining guidance. A ramp up in production out of the South Flank operations were slightly offset by a lack of train operators...

19/01/2022 09:35

Metrics Credit Partners (MXT) $2.09

We have owned MXT in the Income Portfolio since they listed on the ASX in 2017. When they listed, they were the first sort of listed vehicle tapping an alternative style income market, in this case being domestic corporate loans, so sitting alongside, or in place of banks, lending to Australian corporates. Over that time, MXT has been a consistent performer, have stayed...

19/01/2022 09:30

Active Income Portfolio

The Income Portfolio added +0.87% over the course of the week while cash sits at ~4%. AGL Energy (AGL) led the line up +5.60% although after such a strong rally from the lows, some consolidation here would not surprise, BHP was also strong +4.59% while Alumina (AWC) +3.98% has been on the recovery path. The most notable drag was Magellan Financial Group (MFG) down by -5.53%.

19/01/2022 09:29

BHP Group (BHP) $46.70

BHP has experienced a volatile ride over the last 6-months having been heavily influenced by the respective aggressive moves in both iron ore and oil. In less than 2-weeks’ time BHP will no longer be listed in the UK and its market cap in Australia will soar, taking it from around 6% of the ASX200 to closer to 10%, reclaiming its “Big” title in the process. By definition...

19/01/2022 09:28

Flagship Growth Portfolio

The MM Growth Portfolio rallied 0.64% last week outperforming the market which only edged 0.2% higher, our cash positions sits at 2% i.e. we’re still long and bullish. We enjoyed strong performances from a mix of stocks although energy was front and centre i.e. BHP Group (BHP) +4.59%, Santos (STO) +4.9% and ResMed (RMD) +5.73% conversely we saw a...

19/01/2022 09:24

Magellan Financial Group (MFG) $19.98

The news has gone quiet around MFG of late considering how much real estate in the business pages Hamish Douglass had been occupying, now the dust appears to have settled it feels like an ideal time to re-evaluate the battered fund manager, especially with a large fully franked dividend due in around a months’ time:

17/01/2022 09:28

Chapter 3 – Increase flexibility & quality

We have already touched on increasing defensives and cash through 2022 but what stocks to hold in respective sectors and the market as we alluded to earlier ultimately dictates portfolio performance and as we expect shorter and sharper cycles opportunities to buy & sell are likely to present themselves at regular times – not being active enough on the sell side was probably our largest portfolio detractor last year.

12/01/2022 09:27

National Storage REIT (NSR) $2.59

National Storage REIT (NSR), Australia’s largest owner of self-storage assets is now trading on a cap rate of ~4.5%. The cap rate (standing for capitalisation rate) is a widely used measure in property which divides the net income generated by the property by its value. In other words, it’s the return the property (or portfolio of properties) will spin...

12/01/2022 09:26

Active Income Portfolio

The Income Portfolio is up +1.97% since our last update although it fell marginally this week, down by -0.20% in a market that lost more than 2% while cash remains at ~4%. AGL Energy (AGL) was the main winner up +10.30% supported by BHP +5.36% & Alumina (AWC) +3.88%. On the flipside, Metcash (MTS) fell -4.47% while Smart Group...