Portfolio update | September 2016
Markets added value in the September quarter with the S&P/ASX 300 Accumulation Index up 5.2%, continuing the gains since the lows of February. Consumer Staples and Materials (largely resources) were the top performers, while 'bond proxies' such as Telecommunications and Utilities recorded a negative return for the period.
Global markets preoccupied by US election and rates
Global markets remain focused on the US presidential election, along with speculation around movements in the US interest rate cycle, together with any movement in the direction of quantitative easing in either Japan or Europe.
Reporting season highlights tepid growth
Back home, reporting season again highlighted tepid revenue growth for most corporates, together with a focus on cost efficiencies or self help. However, several of Ralton's holdings delivered pleasing results.
On top of the actual profit or cash-flow figures, holdings such as Woolworths, Cleanaway, Coca-Cola Amatil, iSelect and Computershare delivered commentary and results that suggest they have reached an inflection point in terms of corporate turnaround or strategic direction.
September 2016 reports