Equity Income Portfolio trades

Our Equity Income Portfolio has reduced some of its largest holdings

The Intelligent Investor Equity Income Portfolio has reduced its holding in Trade Me by about two percentage points to 6.6% (at $5.32) and its holdings in ASX (at $51.51) and Virtus Health (at $7.92) each by one percentage point, to 6.3% and 4.3% respectively.

It has used the money (and some cash) to increase its holding in Commonwealth Bank by three percentage points to 5.2% (at $71.60) and its holding in Westpac by 1.5 percentage points to 3.8% (at $29.55).

Trade Me remains a Buy and we're very comfortable with it. However, its weighting (at 8.6%) was well above our 6% recommended maximum. Commonwealth Bank and Westpac are both Holds, but close to their Buy prices and they're well suited to an income-focused portfolio due to their high fully franked dividend yields.

See our article What we mean by Buy Hold and Sell for a fuller explanation of what our recommendations mean.

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