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20170707 – Portfolio Activity

The leaders of 20 nations have gathered this week in Hamburg, Germany in what Bloomberg is calling the G19 plus Donald Trump, pointedly referring to ”America’s new unwillingness to cooperate with the world on vital international issues.” There can be no clearer rejection of the Trump administration’s isolationist stance than the preliminary free trade agreement reached between the European Union and Japan. The deal announced this week will eliminate tariffs, expand markets for services and boost regulatory cooperation. It must also be said that it shows the priorities of the EU as Brexit negotiations begin in earnest, and the weak position from which the United Kingdom is required to negotiate their exit from the common market.

Reserve Bank Governor Philip Lowe delivered a decidedly neutral statement when announcing the bank’s decision to leave interest rates at 1.5% this week. Whilst the decision was entirely expected, some had anticipated that the bank may signal a subtle shift towards a tightening bias in due course. The absence of that language led to a sharp fall in the Australian dollar as expectations were adjusted. The consensus is still that the next rate move will be upwards, as data continues to confirm that the economy is on a sound footing. This week trade data showed a strong rebound in activity, supporting the view that the Q2 GDP result will do likewise.


The flexibility to correlate non-model investments within asset classes is a feature of the Individually Managed Account portfolio structure. As an example, often this means we accommodate an investor’s existing shareholding and manage asset allocation and sector exposures around that investment. By contrast, traditional managed fund portfolios require uniformity in investor portfolios, irrespective of potential tax consequences and transaction charges. A typical example is a shareholding in one of our major banks which we can correlate within the asset class target for Australian Equities, and model investments from the Financials sector more specifically. The portfolio management team works closely with your Adviser to ensure that your portfolio reflects your individual circumstances.


  • We made purchases in bank preference securities for ANZ (ANZPE) and Westpac (WBCPE) for newer accounts being moved towards their targets. As per usual at the start of the month we also made purchases of the High Interest Cash ETF (AAA), this was mainly for newer accounts.
  • We also completed some selling for accounts that required cash for quarterly distributions and pension payments.

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