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Active Income Portfolio

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

About The Active Income Portfolio

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
Portfolio 1M 3M 6M 1Y 3Y pa ITD pa*
Active Income Portfolio 2.83% 4.60% 10.70% 21.45% 9.29% 8.89%
Target 7% 0.58% 1.75% 3.50% 7.00% 7.00% 7.00%
Difference +2.25% +2.85% +7.20% +14.45% +2.29% +1.89%
* Inception date 05/07/2017
Portfolio Holdings trade now
COMPANY CODE STOCK NAME WEIGHT (%) RISK TIME HORIZON ENTRY DATE ENTRY PRICE ($) LAST PRICE ($) DIVIDENDS ($) GAIN / LOSS (%)
ANZPI ANZ Capital Notes 6 4 Low Long 8/07/2021 100 102.4 2.4
AWC Alumina Ltd 4 Moderate Medium 13/09/2021 2.2 2.16 -1.82
BHP BHP Group Ltd 5 Low Long 11/12/2019 37.73 41.73 8.21 32.36
CBA Commonwealth Bank of Australia 7 Moderate Medium 13/03/2020 61.33 101.58 6.05 75.49
CBAPG Commonwealth Bank Hybrid 5 Moderate Medium 9/04/2018 100 104.24 14.24 18.48
CWNHB Crown Resorts Ltd 4 Moderate Medium 26/05/2021 98.26 85.65 1.88 -10.92
DXS Dexus/AU 4 Low Long 10/03/2021 9.2 10.77 0.23 19.57
IAG Insurance Australia Group Ltd 6 Moderate Medium 21/10/2020 4.69 5.24 0.13 14.5
IFL IOOF Holdings Ltd 6 Moderate Medium 7/10/2020 3.59 4.42 0.23 29.53
IGL IVE Group Ltd 3 Moderate Medium 18/06/2018 2.28 1.62 0.54 -5.26
MTS Metcash Ltd 5 Moderate Medium 9/12/2020 3.5 3.96 0.25 20.29
MXT MCP Master Income Trust 5 Low Long 9/10/2017 2 2.07 0.37 22
NAB National Australia Bank Ltd 7 Moderate Long 27/08/2020 18.71 28.23 1.35 58.1
NABPF National Bank Hybrid 5 Low Long 21/03/2019 100 107.1 11.45 18.55
NSR National Storage REIT 4 Moderate Medium 5/05/2021 2.04 2.36 0.04 17.65
SIQ SmartGroup Corp Ltd 5 Moderate Medium 25/02/2020 6.98 7.75 0.73 21.49
SSM Service Stream Ltd 3 High Medium 20/01/2021 1.77 0.84 0.04 -50.28
TCL Transurban Group 4 Moderate Medium 2/04/2020 11.82 13.82 0.38 20.14
TLS Telstra Corp Ltd 5 Moderate Medium 7/09/2020 3.19 3.96 0.16 29.15
XARO ActiveX Ardea Real Outcome Bon 5 Low Long 21/10/2019 26.47 25.84 1.3 2.53
Portfolio cash position: 4%
Recent Sales trade now
Company code STOCK NAME WEIGHT(%) RISK TIME HORIZON ENTRY DATE ENTRY PRICE ($) CLOSE PRICE ($) DIVIDENDS ($) GAIN / LOSS (%)
TLS Telstra Corp Ltd 3 Moderate Medium 7/09/2020 3.19 3.91 0.16 27.59
RIO Rio Tinto Ltd 5 Moderate Medium 14/05/2019 94.42 124.8 14.61 47.65
AMPPB AMP Ltd 4 Moderate Medium 24/12/2019 100 97.61 5.94 3.55
SUL Super Retail Group Ltd 4 Moderate Medium 20/01/2021 11.95 12.1 0.47 5.19
WES Wesfarmers Ltd 5 Moderate Medium 15/05/2020 37.3 54.98 2.61 54.4
NBI NB Global Corporate Income Tru 5 Low Long 26/09/2019 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
XARO AXW ActiveX Ardea Real Outcome Bond 5 Low Long Term 15/05/2020 26.47 26.9 0.18 2.3
SKI Spark Infrastructure 4 Moderate Medium Term 4/05/2020 2.16 1.87 0.11 -8.33
SGP Stockland 3 Moderate Medium Term 15/04/2020 4.47 3 0.14 -29.75
MTS Metcash 4 Moderate Medium Term 27/03/2020 2.62 3.11 18.7
NAB National Australia Bank 5 Moderate Medium Term 13/03/2020 30.12 15.74 6.15 -27.32
CBAPF CBA Capital Note Mar-22 5 Low Long Term 25/02/2020 101.85 103.3 14.1 15.27
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Recent Opinion for the Income Portfolio

National Australia Bank (NAB) $28.20

NAB has outperformed in the Banking Sector over the last 3-months rallying 4.4% compared to say ANZ Bank (ANZ) which has fallen 4.6%. At MM we are hoping to increase our exposure to the sector via VUK at lower levels and while a pullback in NAB wouldn’t surprise after this month’s fresh multi-year high we have no interest in risking losing our position here, especially with a healthy dividend due in November.

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Commonwealth Bank (CBA)

A less dramatic example was set by Commonwealth Bank (CBA) in August, before it traded ex-dividend in similar fashion to FMG. MM flagged this likely move for CBA and trimmed our banking exposure accordingly – we currently only have a combined 10% exposure to CBA & NAB in our Flagship Growth Portfolio compared to the sectors market weighting of around 20%.

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Telstra (TLS) $3.95

TLS +0.51%: Held a strategy day to announce their T25 strategy which sounds impressive and the update was. This is clearly a company with better times ahead and the tough decisions taken in recent years are starting to pay off. Their key targets are for  mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) growth out to FY25...

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The Banking Sector

Secondly, as previously flagged MM has been watching UK based bank Virgin Money (VUK) into recent weakness i.e. over the last month NAB has rallied 1.5% while VUK has fallen 5%, not spectacular but still a useful performance differential if compounded over the year. MM has moved underweight the Banking Sector holding just 5% in CBA and NAB respectively...

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Transurban (TCL) $13.80

MM is holding TCL in our MM Income Portfolio, it has very similar rationale to SYD plus there are no foreign ownership caps which makes is an easier proposition for overseas suitors. Interestingly the TCL chart looks like a carbon copy of SYD before the takeover activity unfolded.

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Commonwealth Bank (CBA) $100.55

CBA managed to hold above its August low and it appears to be gaining support in the $100 region, our view hasn’t changed towards Australia’s premier bank i.e. we see major support 4-5% lower.

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Insurance Australia Group (IAG)

MM followed our improved outlook towards insurance via buying IAG in mid-August, we remain happy with this purchase believing the stocks great value under $5.50.

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BHP Group (BHP) $41.94

BHP traded ex-dividend yesterday with the share price closing over 20% below its July high – the combination of tumbling iron prices, a $5.7bn investment in Potash, unification of its’s listing structure and BHP’s planned petroleum demerger with Woodside (WPL) has weighed on the share price in a major fashion. Interestingly both BHP and WPL...

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The Banks

The Banking Sector thrives on a strong property market as they enjoy steady margins with low bad debts, we believe todays ideal environment can be maintained for the coming year, or two minimum. However the current strong tailwind is clearly built into todays prices at least to a certain degree with the likes of CBA doubling in under 2-years, posting fresh all-time highs in the process.

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History of Actions for the Income Portfolio

NAB
UPDATED 17/09/2021 09:21
MM remains bullish NAB medium term
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TLS
UPDATED 17/09/2021 09:04
MM is neutral TLS around $4.00
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TCL
UPDATED 15/09/2021 08:07
MM likes TCL below $14
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TLS
UPDATED 13/09/2021 10:55
MM are trimming TLS in the Income Portfolio, taking profit around $3.89
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CBA
UPDATED 13/09/2021 08:21
MM likes CBA around the $96 area
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IAG
UPDATED 06/09/2021 08:59
MM remains bullish IAG targeting a break of $6
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BHP
UPDATED 06/09/2021 08:58
MM is bullish BHP under $45
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CBA
UPDATED 06/09/2021 08:56
MM remains bullish the banks with NAB & CBA our picks
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NAB
UPDATED 06/09/2021 08:54
MM is happy with our CBA & NAB exposure to the Banking Sector
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NSR
UPDATED 02/09/2021 09:05
MM has switched to a neutral stance on NSR around $2.34
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View the other Market Matters Portfolios

These high performing active portfolios are the heart of a Market Matters membership.

As a member (or on a trial) you have full access to them to follow in full or in part.

You will receive real-time notifications with in-depth analysis of the decisions taken and why.

*Portfolio returns 12 months to 30/06/2021

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