FirstWrap Commentary – September 2022 Quarter

by Chris Limberg on Sep 30, 2022

Please find attached your Colonial First State FirstWrap Superannuation quarterly report. The following information is contained within the report:

  • Portfolio Valuation as at 30th September 2022
  • Portfolio Return for the quarter to 30th September 2022 (Gross of fees, taxes and insurance premiums)
  • Summary of fees for the quarter

FirstWrap commentary – June 2022 Quarter

The Australian market continued to fall in the September quarter as global Central Banks continue to raise interest rates attempting to control inflation. The Australian interest rate is currently 2.6% with expectation of further increases.

Amongst a fluctuating economic outlook, the ASX 200 declined a further -1.43% for the September quarter closing at 6,474 concluding another volatile period in markets. The ASX200 for the 1 year to 30 September was down -11.7%, 3 years down -1.08%.

The conservative approach in your the super has provided some downside protection in these volatile markets and the exposure to defensive yield focused investments is providing income during these volatile periods.

Actions taken through the quarter:

  • We maintained a large cash position waiting for volatility to subside and an opportunity to invest.
  • Built a position in Metric Income Opportunities Trust (ASX: MOT)
  • Built a position into MA Financial Group (ASX: MAF)

Investment review

Metric Direct Income Fund

  • Unlisted managed fund that provides protection against volatility due to not being on the listed market.
  • Target return of RBA cash rate + 3.25% (currently 5.85% p.a.)
  • Monthly income payments
  • Fund Summary for September attached

Metric Income Opportunities Fund (ASX: MOT)

  • MOT is a listed investment managed by Metric Credit partners
  • Target return is 7% income with 2-3% growth (Target total return is 8-10% p.a.
  • We have built a position in this investment during the September quarter.
  • Fund Summary for September attached

MA Financial Group (ASX: MAF)

  • MA Financial Group is a funds management business which is consistently been growing funds under management for 13 years now managing $7.2 billion.
  • MAF reconfirmed its FY22 guidance for 30-40% underlying earning per share on FY21.
  • The share price has been affected due to market volatility however the company’s performance continues to be positive remaining well-funded with multiple revenue streams and pays a dividend. The company announced a share buy back for up to $25 mil sending a strong indication that the share price is undervalued.

Thank you for your continued support and if you would like to discuss any of these strategies please do not hesitate to get in touch.