REBALANCE – Mission Complete (Almost)
Our ‘February’ rebalance of MDA client accounts has taken a little longer than expected – but all for a good cause.
Volatility in the market, some concerns over further significant corrections and timing all played a part in our ‘steady-as-she-goes approach to re-engaging with the market.
As it stands at the moment, we currently have:-
• 36% of client funds in ‘cashside’ investments (VACF – Van Aus Corp FI Etf: MXT – MCP Master Income Trust);
• 42% in ‘investside’ stocks (PMC-Platinum Capital Ltd; HEUR-Betashares WT Europe; FPP-FAT Prophets G P F; MOAT-Vaneck US Wide Moat; PAI-Platinum Asia Ltd; TECH – Global Tech ETF
• 22% in CASH
What is particularly notable about the current portfolio selections is that although ASX listed, they are primarily international and are highly diversified investments through either listed investment companies (LICs) or exchange traded funds (ETFs).
At present, the Australian market appears to be going sideways and we are seeing best returns from overseas investments. We have selected expertly managed funds with strong management experience in delivering solid returns.
We still have some further investments to place to bring client cash holdings to around 10% and therefore ensure that your funds are working as hard as possible.
MORE ABOUT MXT
.We have just completed participating in a capital raising issue by Metric Credit Partners for their MCP Master Income Trust.
Depending on which strategy you have elected, MDA clients will have a minimum of 20%, and up to 30% of your funds invested in MXT.
Acquisition of these shares via the offer, was at $2.00 per unit and we would expect to see some growth in the capital value over time. Their main strength however is in providing income at low risk. Here are some pointers as to the benefits;
• Direct exposure to the Australian corporate loan market;
• Monthly cash income with low risk of capital loss;
• Diversified portfolio managed by experienced debt specialist fund managers (Metrics Credit Partners – ~$2.7b under management);
• Low management fee and cost structure
• Targeted annual return of the RBA Cash Rate + 3.25%
These shares settled on April 16 and will now appear in your portfolio.
As ever, we constantly monitor individual account balances daily and can (and do) react when circumstances dictate. The current portfolio investments will however remain steady (except in the event of any significant market movements) until the next rebalance due in August this year.
Should you require any further information or have questions you would like answered please feel free to call either William or Wayne directly.