July 2019
The S&P/ASX 300 Accumulation Index returned 8.05% for the June quarter, with Financials and Materials the top performing sectors and Energy and Utilities the weakest performers for the period.
Domestically, the RBA has admitted to the domestic slowdown with a cut in rate in June following a decline in consumption from declining house prices and ongoing soft wage growth. The RBA has called for more fiscal stimulus as monetary policy is approaching its limits.
Whilst the 2015/16-style recovery in the market has been overdone, we recognise that there are some outstanding value opportunities to take advantage of in the cyclical segments of the market, should the domestic and international stimulus build. We expect to be repositioning into these once the recovery starts to gain traction.
Ralton Concentrated Australian Equity (Australian Shares)
Aristocrat Leisure delivered a strong 1H19 result which saw a restoration of investor confidence in management during the quarter.
Ralton Dividend Builder (High Yield Australian Shares)
During the month we added a holding in Healius Ltd. HLS has been held in another portfolio and we are becoming increasingly confident in the strategic initiatives of new CEO, Dr Malcolm Parmenter to deliver a turnaround across the company’s operational divisions
Ralton Australian Equity Ex 50 (Smaller Companies)
Northern Star Resources gained traction in May (+19%) and June (+20%) to end up significantly outperforming the market and the gold price over the June quarter.
Ralton Leaders portfolio
Aristocrat Leisure delivered a strong 1H19 result which saw a restoration of investor confidence in management during the quarter.