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 31/10/2023 19:00
Portfolio	1M	3M	6M	1y	3y pa	ITD pa*
Active Income Portfolio	-2.69%	-2.50%	-0.18%	9.02%	11.97%	7.59%
RBA Cash Rate + 4%	0.68%	2.01%	4.02%	7.64%	5.40%	5.06%
Difference to benchmark	(3.37%)	(4.57%)	(4.20%)	+1.38%	+6.57%	+2.53%

* 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 (%)
AGL	AGL Ltd	3	Medium	Long	23/02/2023	6.96	9.43	0.23	38.79
ANZPI	ANZ Capital Notes 6	6	Low	Long	8/07/2021	100.33	101.66	10.66	11.95
APA	APA Group	5	Low	Medium	26/05/2023	9.82	8.53	0.29	-10.18
BHP	BHP Group	8	Low	Long	11/12/2019	40.38	46.30	11.95	44.25
CBA	Commonwealth Bank	6	Moderate	Medium	13/03/2020	61.33	104.66	17.98	99.97
CBAPG	Commonwealth Bank Hybrid	5	Low	Medium	09/04/2018	100	103.41	25.84	29.25
CNI	Centuria Capital Group	4	Moderate	Medium	29/07/2022	2.065	1.47	0.12	-23.00
DXS	Dexus Property Group	4	Moderate	Medium	13/12/2022	8.02	7.04	0.52	-5.74
GSBG25	Aust. Govt. Bond 3.25% 21.04.2025	6	Low	Long	11/05/2022	100.54	99.02	3.79	2.26
MFG	Magellan Financial Group	4	High	Medium	27/06/2023	8.73	7.44	0.93	-4.12
MTS	Metcash	5	Moderate	Medium	9/12/2020	3.5	3.62	0.88	28.57
NAB	National Australia Bank	7	Moderate	Medium	15/12/2022	29.64	28.40	2.39	3.88
NABPF	National Bank Hybrid	5	Low	Long	21/03/2019	100	105.78	23.50	29.28
NABPI	NAB Capital Notes 6	5	Low	Long	13/07/2022	98.94	102.84	7.68	11.70
NHC	New Hope Coal	4	High	Medium	22/11/2022	5.55	5.20	0.80	8.11
ORA	Orora	4	Moderate	Medium	16/11/2023	2.56	2.54		-0.78
OZBD	BetaShares Australian Composite Bond ETF	5	Low	Long	13/04/2022	45.28	43.23	1.93	-0.27
TLS	Telstra Group	5	Low	Medium	9/06/2021	3.43	3.82	0.54	27.11
WBCPK	Westpac Hybrid	5	Low	Long	7/09/2022	100.40	101.86	8.08	9.50

Portfolio cash position: 3%

**Recent Sales** UPDATED 16/11/2023 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
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
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

OPINION
ACTION

Recent Opinion for the Income Portfolio

30/11/2023 09:16

Xero Ltd (XRO) v Telstra Group Ltd (TLS)

XRO has enjoyed a solid 2023, advancing +45% year-to-date, but the last few months have proved disappointing as the stocks corrected 20% following a soft report recently. We like the online accounting business, but valuation is always a concern, especially if/when we enter a risk-off period for equities.

30/11/2023 09:13

Altium Ltd (ALU) v APA Group (APA)

ALU, like most of the Tech Sector, has enjoyed a solid 2023, advancing +26% year-to-date, but again, the last few months have proved disappointing as the stocks corrected 21% after an aggressive drive higher following an impressive result in August.

29/11/2023 09:21

AGL Energy (AGL) $9.80

AGL has dipped back below $10 this week having hit a high of $12.45 at the start of August. Most of the attention in the space has been focused on Origin Energy (ORG) as the tussle between potential acquirer Brookfield and major shareholder AusSuper continues to fill the papers. AusSuper is digging its heels in, essentially looking long-term around valuation and using that lens, they believe Brookfield’s bid undervalues the ORG assets.

27/11/2023 08:54

Interest Rates / Bond Yields

The Australian three-year bond yield recovered some of its recent early losses last week. It remains a big ask for them to push much below 4% without clear signs that inflation is under control and the RBA has donned a dovish hat into 2024 – this week’s Retail Sales and CPI (inflation) data will influence how Australian bonds and interest rate hopes travel into 2024.

24/11/2023 09:10

APA Group (APA) $8.34

The regulated energy utility company APA has struggled throughout 2023, not just this FY, but we believe the stocks is representing excellent value ~$8, especially if our dovish view towards bond yields plays out through 2024.

24/11/2023 09:07

Telstra Group Ltd (TLS) $3.80

TLS has ground lower over the last 6-months, and as we discussed earlier in the week, MM likes TLS into this pullback.

22/11/2023 09:27

Telstra Group Ltd (TLS) $3.82

TLS held its investor day last week, and we heard nothing to change our confident mid-term outlook for TLS's growth drivers, which could help underpin the above-mentioned dividend from 18c in FY24 towards 23c by FY26. This increase will largely be driven by growth in its CPI-linked businesses, which constitute 86% of earnings (EBITDA), i.e. Mobile services revenue, InfraCo Fixed and Amplitel. On a side note, their power bill increased by $100m, it's not just you and I turning off the lights more and more!

20/11/2023 09:03

Interest Rates / Bond Yields

The Australian three-year bond yield retreated last week following the market-friendly US CPI inflation print, as signs emerge that the macro factor, which has sent interest rates soaring over recent years, is finally under control. The local 3s have gone from testing 4.5% to almost 4% in 3-weeks, fuelling the recent strong rally by equities.

15/11/2023 09:13

Wesfarmers (WES) $53.24

We all link Wesfarmers to their ownership of Bunnings, which now makes up ~60% of their earnings (after they spun out Coles in 2018). While Bunnings continues to deliver for WES, their broader business is at an interesting juncture. WES is about to become a significant Lithium producer via its 50% ownership of the Mt Holland mine around 500 km east of Perth, which is expected to come online in the second half of 2024, with earnings flowing into FY25.

14/11/2023 16:51

Commonwealth Bank (CBA) $102.28

CBA +0.96%: 1Q numbers out for the biggest of the Big 4, CBA shows it remains the quality pick of the banks with a strong start to FY24. Cash NPAT of $2.5b was around a 3% beat to consensus expectations championed by what looks like better-than-expected Net Interest Margins (NIM) despite some upward pressure on deposit pricing.