Portfolio Quarterly Update - March 2020
The quarterly updates for the InvestSMART Conservative, Balanced, Growth, High Growth, Interest Income, Hybrid Income, International Equities and Diversified Property Portfolios.
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter your SMS code' }}
A text message with your verification code was just sent to {{user.DayPhone}}
We cannot send you a code via SMS to {{user.DayPhone}}
Hi {{ user.FirstName }}, please provide your mobile number.
{{ content.trialHeading.replace('{0}', user.FirstName) }}
We'll send you a text message with a verification code to start your free {{ '0' == '1' ? 'Eureka Report' : 'Intelligent Investor' }} 15-day trial.
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Eureka Report 15-day free trial
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Indepth analysis of ASX listed shares
- BUY, Hold and Sell Recommendations
- Ideas Lab
- Special Reports
- Alan Kohler’s Weekend Briefing
- Interviews with CEO’s & top influencers
- Money Cafe and Talking Finance
- Super Advice and Q&A with Ask Alan
Here are the highlights from each of the portfolios. Further information and commentary can be found in the full reports linked.
Contents
InvestSMART Conservative Portfolio
- The InvestSMART Conservative Portfolio lost 6.48% in the March quarter (after fees).
- No changes were made to the portfolio during the quarter.
- Estimated yield on the portfolio is currently 2.89%.
- All defensive assets gained over the first period, all growth assets declined.
Click to read the full report here.
Back to top
InvestSMART Growth Portfolio
- The InvestSMART Growth Portfolio lost 12.54% in the March quarter (after fees).
- No changes were made to the portfolio during the quarter.
- Estimated yield on the portfolio is currently 3.98%.
- All growth assets in the portfolio fell in the first quarter of 2020, all defensive assets gained over the same period.
Click to read the full report here.
InvestSMART High Growth Portfolio
- The InvestSMART High Growth Portfolio lost 13.39% in the March quarter (after fees).
- No changes were made to the portfolio during the quarter.
- Estimated yield on the portfolio is currently 4.58%.
- All growth assets in the portfolio fell in the first quarter of 2020, all defensive assets gained over the same period.
Click to read the full report here.
InvestSMART Balanced Portfolio
- The InvestSMART Balanced Portfolio lost 9.59% in the March quarter (after fees).
- No changes were made to the portfolio during the quarter.
- Estimated yield on the portfolio is currently 3.50%.
- All growth assets in the portfolio fell in the first quarter of 2020, all defensive assets gained over the same period.
Click to read the full report here.
Back to top
InvestSMART Interest Income Portfolio
- The InvestSMART Interest Income Portfolio gained 1.34% in the March quarter (after fees).
- Several changes were made to the portfolio during the quarter to better align to its benchmark (see performance section).
- Estimated yield on the portfolio is currently 2.01%.
- All corporate bond holdings fell in the first quarter of 2020 while all sovereign bond holdings gained.
Click to read the full report here.
InvestSMART International Equities Portfolio
- The InvestSMART International Equities Portfolio lost 9.71% in the March quarter (after fees).
- No changes were made to the portfolio during the quarter.
- Estimated yield on the portfolio is currently 2.54%.
- All facets of the portfolio fell in the first quarter of 2020.
Click to read the full report here.
InvestSMART Diversified Property & Infrastructure Portfolio
- The InvestSMART Diversified Property & Infrastructure Portfolio declined 22.91% in the March quarter (after fees).
- No changes were made to the portfolio over the quarter.
- Estimated yield on the portfolio is currently 5.15%.
- All facets of the portfolio declined in the quarter as COVID-19 restrictions shattered the normal operations of the property and infrastructure sector.
Click to read the full report here.
InvestSMART Hybrid Income Portfolio
- The InvestSMART Hybrid Income Portfolio total portfolio return was -5.31% for the month including franking credits. The estimated running yield is over 5.0% , and estimated yield to call/maturity is 6.75% including franking credits.
- The total portfolio return was -6.57% and -3.70% for the quarter and 12-month period. Since inception the total portfolio return is 1.53% including franking credits, which is -2.85% under its return objective of the RBA Cash rate plus 3%.
- The trading margin of ASX-listed hybrids increased substantially during March as gross yields increased on most securities as prices traded lower. This resulted from liquidity issues in all credit markets including hybrids, as evidenced by the major fixed interest funds increasing their buy sell spreads.
- The selling came from two places: investors switching from hybrids to take advantage of lower equity prices, and fund investors seeking liquidity to fund redemptions. Hybrids were one of the few credit issues that had liquid markets
- The RBA cut the official Cash rate on 2 March to 0.50% and again on 18 March to 0.25%.
- March had all the securities in the portfolio trading ex-distribution, with payments expected in April.
- Macquarie and NAB cancelled their respective issues before allotment, citing the yield expansion in the hybrid market as their reason.
- Challenger were unable to issue new securities to raise capital to redeem CGFPB at the first call date in May 2020. These securities will remain on issue until May 2022 but may be redeemed or resold prior to that date at APRA’s discretion. We expect Challenger to refinance this issue prior to May 2022, though this highlights that redemptions of any hybrid issue may be delayed in unusual market circumstances.
- At end of March the portfolio had a 4.75% allocation to cash.
