• Marcus Bogdan

Portfolio Update - October 2018

October was the worst monthly performance for the Australian share market in three years. Indeed, from late August through to late October the peak-to-trough correction in the ASX 200 was 10.3%. Share markets had been resilient in the face of rising bond yields, the outlook for ongoing Federal Reserve rate hikes and mounting trade tensions between the US and China, yet disappointing earnings results and outlook commentary from some leading US technology companies undermined confidence and led the broader market into an arguably overdue correction.


The Blackmore Capital Blended and Income portfolios retraced 5.5% and 5.7% respectively, buttressed by holding companies with resilient earnings and strong balance sheets. Elevated cash weightings also cushioned the portfolios from the full downturn of the share market sell-off.

The Blended Australian Equities Portfolio finished the month of October down -4.20% compared to the ASX 200 Accumulation Index down -6.05%. Positive attribution for the Blended Australian Equities Portfolio was driven by Washington H. Soul Pattinson (SOL), Woolworths (WOW), and News Corp (NWS). Whereas, Boral (BLD), Nearmap (NEA), and Senex (SXY) weighed negatively on the portfolio’s attribution.

The Australian Income Portfolio finished the month of October down -4.04% compared to the ASX 200 Accumulation Index down -6.05%. Positive attribution for the Australian Income Portfolio was driven by Washington H. Soul Pattinson (SOL), Coca-Cola Amatil (CCL), and Woolworths. Whereas, Boral (BLD), Qube Holdings (QUB), and Event Hospitality and Entertainment (EVT) weighed negatively on the portfolio’s attribution.

We are actively taking advantage of the correction in equity markets to add to companies that remain will positioned in their perspective industries and are supported by robust balance sheets. Cognisant that volatility could remain elevated, we have retained a strong cash balance to provide ongoing ballast and future capital to deploy when buying opportunities emerge.


See the 'Portfolios' section of the website to download monthly summaries for each portfolio.

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Blackmore Capital Pty Ltd (ABN 72 622 402 895) (Blackmore Capital) is a Corporate Authorised Representative (CAR) of Artesian Venture Partners Pty Ltd (AFSL 284492)