FirstWrap commentary – Sept 2023 Quarter

by Chris Limberg on Sep 30, 2023

The ASX200 closed 154 points lower falling 2.15% for the September quarter. The new Reserve Bank Governor, Michele Bullock, began her seven-year term in September. Governor Bullock in her first board meeting reiterated the bank’s commitment to do what is necessary to reduce inflation to       2-3% p.a. The August monthly inflation indicator continued trending lower at 5.2%, however, inflation is not forecast to return to the target range until late 2025. The Board highlighted fuel and rent prices as key areas driving inflation.

Actions taken through the quarter:

  • During the quarter the cash balance was maintained with an average weighting around 10% of the portfolio. This cash balance provides the opportunity to invest on market weakness and volatility
  • We rebalanced the weighting between Metric Direct Income fund and MA Priority Income fund as it was recently added to provide diversification between manages and balance the exposure.
  • Investments Metric Direct Income fund, MA Priority Income fund, GCI, MOT and MXT continued to pay monthly income with yield ranging from 8% to 11% p.a.
  • Macquarie Bank (MQG) and MA Financial Group (MAF) paid their semi-annual dividend during the quarter.

New Investments Summary

There were no additional investments into the strategy over the quarter. We have a short list of investments that we are monitoring based on price and market conditions that we will add into the investment strategy if the opportunity presents.

Compliance Documents

At the start of September you would have received via email the Annual Statement of Advice which outline the strategy and fees for the superannuation investment strategy along with the Ongoing Fee Consent form. These were emailed from Adobe Sign for digital signature. Thank you to those that have signed these. If they are still outstanding I would ask that you sign the next reminder email that gets sent out. If you are having trouble please let me know and I can assist.

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.