It's going to be a very interesting Federal Budget this year – the first for new Treasurer Scott Morrison – with some challenging macro-issues not to mention the possibility of changes in everything from super contribution concessions to HECs debt arrangements.
Income First model portfolio update
The Income First model portfolio posted a solid week, lifting in value by 0.99 per cent. In context, the market lifted by around four per cent last week, so the portfolio underperformed on the way up. This is expected given the portfolios large cash holdings, and lower volatility.
Looking forward, NAB and ANZ will report financials in May and we expect to see an update from Flexigroup regarding financing and profit guidance. For now we remain comfortable with the portfolio’s overall exposure and income generation level, though new opportunities will continue to be assessed.
- James Samson
LIC model portfolio update
There are no changes to the model portfolio this week. Last week saw Bailador Technology Investments (BTI) enter the portfolio (click here to read more: Our newest LIC purchase, April 11, 2016). BTI went on to close at an all time high, ending the week at $1.06. Short-term performance is not our focus but it was pleasing to see all the same.
Last week Chris Stott and Matthew Haupt from Wilson Asset Management came in to discuss the new LIC WAM Leaders and I followed that up putting my thoughts down on paper. You can read the article and view the video here: (read here: WLE – our thoughts). Finally, the team at PM Capital have been out across the country pressing the flesh. Click here to watch the video of their Sydney presentation, which covers off both LICs.
If you're interested in my thought's on BKI's SPP, check out last week's letter to the editor section: click here.
Current Share Price
BKI Investment Company
Bailador Technology Investments
PM Capital Asian Opp.
Perpetual Equity Investment Co.
*Not including dilution effect of outstanding options
- Mitchell Sneddon