June 2018
MONTH TO 31 MAY 2018 |
The S&P/ASX 300 Accumulation Index returned 1.19% for May, with Health Care and Materials the top performing sectors.
The Australian market has pulled back to be trading roughly in line with its longer-term averages, however, this masks a considerable divergence in performance between sectors. Growth stocks and companies perceived to offer earnings certainty continue to re-rate strongly. Many of these stocks are trading at historical extremes – this is not supportive of our value biased investment style. We continue to seek quality companies that are misvalued relative to their true intrinsic value.
Ralton Australian Shares portfolio
Aristocrat Leisure reported a strong 1H18 result during the month, exceeding market expectations, driving the stock higher in May.
Ralton High Yield Australian Shares portfolio
Super Retail Group Ltd continued its strong performance as key brands continue to exhibit growth as the broader retail sector remains under pressure.
Ralton Smaller Companies portfolio
Superloop Ltd performed strongly following its inaugural investor day in May. SLC again outlined its strategy to become a leading independent provider of connected infrastructure across Asia.
Ralton Leaders portfolio
Macquarie Group Ltd performed solidly for the portfolio during May after delivering a strong increase in operating earnings at its full year result.