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 | 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% |
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 |
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 |
Recent Opinion for the Income Portfolio
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... Read moreBHP 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. Read moreMagellan 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 Read moreCommonwealth 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. Read moreMetcash (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... Read moreCrown 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. Read moreActive 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 Read moreMCP 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... Read moreFlagship 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. Read moreHistory of Actions for the Income Portfolio
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