Active Income Portfolio

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

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 31/03/2024 19:00
Portfolio	1M	3M	6M	1y	3y pa	ITD pa*
ACTIVE INCOME	1.94%	1.12%	4.30%	8.65%	9.38%	8.32%
RBA CASH RATE +4%	0.70%	2.05%	4.12%	8.15%	5.94%	5.17%
VALUE ADD	+1.24%	(0.93%)	+0.18%	+0.50%	+3.44%	+3.15%

* 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 ($)	DAILY CHANGE (%)	GAIN / LOSS (%)
AGL	AGL Ltd	4	Moderate	Long	23/02/2023	7.50	9.37	0.43	0.11	30.67
ANZPI	ANZ Capital Notes 6	6	Low	Long	8/07/2021	100.33	103.10	12.38	0.00	15.10
APA	APA Group	5	Moderate	Medium	26/05/2023	9.82	8.32	0.56	-1.65	-9.57
BHP	BHP Group	8	Moderate	Long	11/12/2019	40.38	43.15	13.52	-4.60	40.34
CBA	Commonwealth Bank	6	Moderate	Medium	13/03/2020	61.33	112.99	21.05	-1.75	118.56
CBAPG	Commonwealth Bank Hybrid	5	Low	Medium	09/04/2018	100	102.99	33.46	0.17	36.45
CNI	Centuria Capital Group	4	Moderate	Medium	29/07/2022	2.065	1.69	0.17	-1.46	-9.93
DXS	Dexus Property Group	4	Moderate	Medium	13/12/2022	8.02	7.04	0.52	-1.95	-5.74
GSBG25	Aust. Govt. Bond 3.25% 21.04.2025	6	Low	Long	11/05/2022	100.54	99.28	5.41	-0.17	4.13
MFG	Magellan	4	High	Medium	12/04/2024	9.42	8.69		-5.13	-7.75
MTS	Metcash	5	Moderate	Medium	9/12/2020	3.5	3.89	0.88	-0.26	36.29
NAB	National Australia Bank	7	Moderate	Medium	15/12/2022	29.64	33.51	2.39	-1.44	21.12
NABPF	National Bank Hybrid	5	Low	Long	21/03/2019	100	105.16	27.61	0.00	32.77
NABPI	NAB Capital Notes 6	5	Low	Long	13/07/2022	98.94	103.85	11.77	-0.18	16.86
NHC	New Hope Coal	4	High	Medium	22/11/2022	5.55	4.52	1.04	-0.22	0.18
OZBD	BetaShares Australian Composite Bond ETF	5	Low	Long	13/04/2022	45.28	43.19	2.64	-0.78	1.21
TLS	Telstra Group	5	Low	Medium	9/06/2021	3.43	3.64	0.80	-0.82	29.45
WBCPK	Westpac Hybrid	5	Low	Long	7/09/2022	100.40	103.70	11.65	0.05	14.89

Portfolio cash position: 5%

**Recent Sales** UPDATED 03/04/2024 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
ORA	Orora	4	Moderate	Medium	3/04/2024	2.56	2.24	0.05	-10.55
MFG	Magellan Financial Group	4	High	Medium	08/01/2024	8.73	9.09	0.93	14.78
WES	Wesfarmers Ltd	4	Moderate	Long	16/11/2023	47.85	53.94	4.16	21.42
GEM	G8 Education	3	Moderate	Medium	22/08/2023	1.29	1.08	0.06	-11.63
PPT	Perpetual	4	Moderate	Medium	27/06/2023	24.7	25.4		2.83
MXT	MCP Master Income Trust	5	Low	Long	15/06/2023	2	1.91	0.49	20
AGL	AGL Energy	1	Moderate	Medium	21/04/2023	6.95	8.59		23.6
TLS	Telstra Corp Ltd	2	Moderate	Medium	21/04/2023	3.43	4.27	0.3	33.24
WES	Wesfarmers Ltd	2	Moderate	Medium	21/04/2023	47.85	52.01	2.69	14.32
SGP	Stockland	4	Moderate	Medium	08/02/2023	4.18	4.01	0.26	0.22
PDL	Pendal Group	4	Moderate	Medium	12/01/2023	4.2	3.61	1.67	25.71
BHP	BHP Group	2	Moderate	Long	08/12/2022	38.56	46.42	10.16	46.73
AGL	AGL Energy	3	Moderate	Medium	08/12/2022	6.83	8.07		18.15
APA	APA Group	4	Moderate	Medium	08/12/2022	9.75	11.03		13.12
SSM	Service Stream	4	High	Medium	22/11/2022	1.565	0.745	0.05	-49.2
BOQ	Bank of QLD	6	Moderate	Medium	17/08/2022	8.7	7.37	0.31	-11.72
APA	APA Group	4	Low	Medium	10/08/2022	8.59	12.14	0.53	47.5
CWNHB	Crown Resorts Hybrid	4	Moderate	Medium	29/07/2022	98.26	102.75	3.02	7.64
IFL	Inisgnia Financial	5	Moderate	Medium	13/07/2022	3.59	2.73	0.4	-12.81
MFG	Magellan Financial Group	3	Moderate	Medium	13/07/2022	33.85	12.15	1.57	-59.47
SIQ	Smart Group	5	Moderate	Medium	13/07/2022	6.98	6.62	1.43	15.19
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

OPINION
ACTION

Recent Opinion for the Income Portfolio

26/04/2024 09:13

BHP Group Ltd (BHP) $45.23

Mining giant BHP has made an all-share takeover offer for rival Anglo American, valuing the company at £31.1 billion ($38.9 billion). BHP is attempting to go “all-in” on its very bullish outlook for copper after purchasing OZ Minerals (OZL) in 2023 for just $9.6bn. BHP chief executive Mike Henry believes the demand for the industrial metal will grow exponentially as the world shifts away from fossil fuels. He's repeatedly warned there is not enough Cu supply to electrify the global economy and meet climate targets.

24/04/2024 09:26

First Up

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.

23/04/2024 09:04

Commonwealth Bank (CBA) $112.88

CBA has been the cream of the local Banking Sector for decades, and we still like the bank's risk/reward around $110 after its 9.6% pullback. We have even considered buying CBA in recent sessions, looking to exit ANZ after its May dividend – negating the risks around its Suncorp (SUN) integration.

23/04/2024 09:03

National Australia Bank (NAB) $33.40

NAB, like ANZ, corrected to our previously flagged sub $33 buy zone last week, and we have no reason to change this stance. Again, if we had no position in NAB, we would be accumulating the bank after its 7.2% pullback.

22/04/2024 09:08

Interest Rates / Bond Yields

Australian 3-year bond yields edged lower last week as hopes for rate cuts in the near future remain tenuous at best. Until we see signs that inflation is again turning lower, central banks are likely to be prudent and err on the side of caution regarding rate cuts. In the short term, Australian 3-year yields may have finished their bounce from the 3.5% area, but it is certainly not a clear picture at this stage.

19/04/2024 09:16

Telstra Group Ltd (TLS) $3.67

TLS edged lower yesterday, making fresh multi-month lows while declining to 7% year-to-date. Its 1H24 result was okay, although guidance was updated towards the lower end of previous range. One thing we didn’t like was the unconvincing rhetoric around costs - “we still expect to achieve the large majority of our cost-out ambition by the end of FY25,” and it was this that led us to say, when the stock was trading around $3.80 that “We can see TLS testing its 2022 swing low in the coming months.” – not a big call at the time.

18/04/2024 16:37

BHP Group (BHP) $45.09

BHP +1.46%: while much of the rally today can be explained by strong iron ore and copper prices, BHP was also out with their 3Q production update which was largely positive. Copper production of 466kt was a small beat to expectations with strong grades going through their flagship Escondida asset plus a strong ramp up at the Chilean asset Spence.

17/04/2024 09:32

First Up

Bond markets have been struggling over recent weeks as inflations appeared increasingly “sticky.” Fed members kept telling us their preferred economic path is three rate cuts in 2024, but the futures market is painting a very different picture – a few weeks ago, a rate cut in June was all but pencilled in by traders, now there's only a 50% hope that Jerome Powell will announce a rate cut in July. Bond markets, both at home and in the US, have lost their dovish lustre of late.

15/04/2024 09:08

Interest Rates / Bond Yields

Australian 3-year bond yields edged higher last week as hopes for rate cuts in the near future fade. Global inflation appears to be increasingly sticky, and this concern will increase if Middle East relations deteriorate further, sending oil prices higher in the process. In the short term, a test of 4% wouldn’t surprise us, but ultimately, we’re targeting another leg on the downside through 2024/5.

09/04/2024 09:22

BHP Group Ltd (BHP) $44.25

The “Big Australian”, as it is often referred to, has been touched on a number of times in 2024; we believe BHP is worth accumulating into dips below $40 and reducing above $50 – boring but effective over recent years. The one area we will be watching carefully is if debt levels, and if they do start to impinge on the stock's dividend, we could look elsewhere in the sector.