November 2017
The S&P/ASX 300 Accumulation Index broke out of its recent trading range, finishing up 4.02% for October.
Ralton Australian Shares portfolio
Portfolio holdings Nufarm, Macquarie Atlas Roads and Worley Parsons all participated in M&A activity during the month with equity-funded transactions highlighting the current mood among board rooms for bolt-on transactions. Each deal appears sensible from our vantage and hence the uplift in share prices.
Ralton High Yield Australian Shares portfolio
Stock selection within both Consumer Discretionary and Energy added value for investors during the month, offset by our overweight to Real Estate. Japara Healthcare and Aristocrat Leisure both contributed over 12% to the portfolio during October. Macquarie Atlas Roads also added value following its recent capital raising to support to purchase more of APRR, a key French toll road network.
Ralton Smaller Companies portfolio
The S&P/ASX Small Ordinaries Accumulation Index added 6.02% for October, continuing recent gains with the strong support of Consumer Staples and Materials. Specifically for Consumer Staples, not holding A2 Milk was a material drag on portfolio returns against the benchmark given the stellar performance of this one stock and its weight within the index.
Ralton Leaders portfolio
The Ralton Leaders portfolio added 3.82% in the month, essentially in line with the benchmark. For October, our overweight to Information Technology, together with stock selection within Health Care added value to the portfolio, offset mostly by our cash holding, which weighed on investor returns.