Portfolio update | May 2017
The S&P/ASX 300 Accumulation Index lost ground in May, falling 2.74%. Strength in Industrials and Telecommunications was not enough to offset weakness in other sectors, principally Financials. Lower consumer spending is expected to continue throughout the year as a significant headwind for Australian retailers. Weak wage growth is seeing consumers divert spending away from the retail sector, while Amazon's impending arrival will likely add to the pressure already felt by domestic retailers.
Our Australian Shares, High Yield Australian Shares and Smaller Companies portfolios all posted solid performance during the month, outperforming their respective benchmarks.
A key contributor across all three portfolios was Macquarie Atlas Roads which gained 9.6% in May, largely driven by the election of France's new President, Emmanuel Macron, the strengthening of the Euro against the Australian dollar and a decline in bond yields. While Aristocrat Leisure continued its rise, adding 11% to the Australian Shares and High Yield Australian Shares portfolios.
View the May 2017 reports