Portfolio update | January 2017
The S&P/ASX 300 Accumulation Index recorded a modest fall in January, -0.77%. Materials and Healthcare were both up solidly, however Real Estate and Industrials were both down for the month.
At the end of January, Ralton's flagship Australian shares portfolio marginally outperformed the Index. An overweight position in Energy was a key contributor, while an underweight position in Materials detracted from relative returns.
Despite limited stock news in the lead-up to February's reporting season, CSL, Origin Energy and Boral all added value, with CSL upgrading its profit forecasts in January and targeting 18 - 20% growth in constant currency for FY17.
Markets begin 2017 with some tailwinds
With the dust settling after President Trump's inauguration, markets have begun calendar year 2017 with some tailwinds with domestic resources/energy capital spending reducing, services continuing to grow and housing likely near a peak. From our perspective, some of the key determinants for the year include:
- commentary from the February reporting season
- the impact of a continued rise in US core inflation
- whether the commodities rally is sustainable
- whether the AUD continues to weaken, and
- the outlook for the banks.
We continue to watch a number of turnaround stories that we have been closely following.
View January 2017 reports