The 10.2% return for the ASX 200 in November ranks as one of the strongest months on record. The expectation of a ‘V-shaped recovery’ driven by the prospect of vaccines opening economics has propelled risk assets ever higher. Add in emphatically supportive central bank policy and fiscal stimulus markets have extended their rise into December, fuelling a rotation out of growth and defensive assets into value and cyclical companies. We remain constructive on a sharp rebound in corporate earnings for 2021 but remain mindful that the path forward is dependent on the smooth rollout of mass COVID-19 vaccinations.
The Blended Australian Equity Portfolio finished the month of November up 9.32% compared to the ASX 200 Accumulation Index up 10.21%. Positive contribution for the portfolio was driven by News Corporation (NWS), BHP Limited (BHP), and Westpac (WBC). Whereas Northern Star (NST), Woolworths (WOW), and Chorus (CNU) weighed on attribution.
The Australian Income Portfolio finished the month of November up 7.91% compared to the ASX 200 Accumulation Index up 10.21%. Positive contribution for the portfolio was driven by Commonwealth Bank (CBA), BHP Limited (BHP), and Westpac (WBC). Whereas Northern Star (NST), Woolworths (WOW), and Chorus (CNU) weighed on attribution.