September 2016
The S&P/ASX 300 Accumulation Index decreased 1.56% in August, retracing part of July’s gain. Information Technology was the strongest sector, followed by Energy, with most sectors in negative territory. Defensive sectors, such as Telecommunications and Utilities, were the key negatives.
Reporting season key driver for Ralton’s holdings
Reporting season was the key driver for many of Ralton’s portfolio holdings in August. Cleanaway was a stellar performer for our flagship Australian Shares portfolio, up 32.2%. The three highlights we would call out are: 1) very strong cost control as forecast by the new CEO particularly in the Industrials segment, 2) improved operating margins and cash flow outlook for the Melbourne Regional Landfill (MRL), and 3) improved sales trends. Given the company has been a medium-term turnaround for some time, this was a particularly pleasing result.
New portfolio addition: DUET Group
Ralton also added infrastructure asset owner, DUET Group, to this portfolio during the month after it embarked on a material cost-out, which we believe offers value to shareholders, while offering a solid, cash-covered yield of around 7%.
August 2016 reports