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InvestSMART Hybrid Income Portfolio - September 2018

The InvestSMART Hybrid Income Portfolio produced a return of 2.10%% (after fees) during the September Quarter
By · 12 Oct 2018
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12 Oct 2018 · 2 min read
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  • The InvestSMART Hybrid Income Portfolio produced a return of 2.10% (after fees) during the September Quarter
  • Axsesstoday Bonds (AXLHA) & Westpac Capital Notes (WBCPD) were introduced during the quarter at around a 1.50% weighting each
  • The estimated yield on the portfolio has remained steady at 5.50% (incl franking)
  • Since inception the Hybrid Income portfolio has returned 4.75% per annum (after fees)

Macquarie Group Capital Notes 3 (MQGPC) & the CBA PERLS VII (CBAPD) were the strongest contributors to portfolio performance for the quarter at 0.21% each, while NAB Convertible Preference Shares II (NABPB) was the largest detractor at -0.01%.

During the period, one of the portfolio’s smaller holdings (< 1.5%) in the Hospitality and Transport lender Axcesstoday’s Simple Bond surprised the market by going into trading halt and then subsequently into voluntary suspension from the ASX, having appointed advisory firm Deloitte to conducts a strategic review of the business.

While the payment of AXLHA’s coupon was paid as scheduled on 5 October, the voluntary suspension shall remain in place for AXLHA until the 22nd of October 2018 at the latest. 

The InvestSMART Hybrid Income Portfolio is designed to help diversify the risk and return outcome of a traditional Equities/Debt/Cash income orientated portfolio.Overall, the portfolio continues to perform as expected, trading in excess of our objective RBA Cash 3% since inception.

Find out more about the InvestSMART Hybrid Income Portfolio


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Evan Lucas
Evan Lucas
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