SHARE PRICE
NTA POST-TAX
NTA PRE-TAX
PORTFOLIO RETURN
(20 YEARS)
DIVIDEND YIELD1
CONSECUTIVE QUARTERLY DIVIDENDS PAID
1. Dividend yield is based on current displayed share price, and the most recently declared dividend, annualised
2. Grossed up yield is based on current displayed share price, the most recently declared dividend, annualised, and the tax rate and franking percentage applicable for the most recently declared dividend
SUMMARY
- Global markets declined as investors reacted to rising interest rate expectations and trade-related uncertainty. Despite this, China delivered modest gains, offering some balance to global weakness.
- A new investment in Trade Desk was added during the month. Key holdings such as UnitedHealth and Tradeweb provided stability, while Schneider Electric detracted.
- The portfolio returned -4.5% in March. While markets were broadly weaker, the portfolio held up better than global equities overall, supported by contributions from Healthcare, Financials, Real Estate, and Consumer Staples.
COMMENTARY
March was a challenging month for share markets, with global equities declining across most regions. In the US, shares came under pressure from ongoing inflation concerns and signs that interest rates may remain higher for longer. Rising trade tensions and soft consumer data also contributed to a more cautious mood.
European markets followed suit, with modest economic activity and political uncertainty dampening investor confidence. On a more positive note, China’s share market edged higher for the month, supported by stronger-than-expected company results and signs of improving economic momentum.
From a sector perspective, Energy and Utilities companies were more resilient, benefiting from their defensive characteristics. In contrast, the Information Technology sector saw the sharpest declines, particularly among companies exposed to the artificial intelligence theme. Consumer-related shares also lagged, reflecting weaker household spending.
Portfolio Commentary
The portfolio declined in value in March, though it proved more resilient than the broader market. This relative stability came from several well-diversified positions in Healthcare, Financials, Real Estate, and Consumer Staples, which helped offset weakness in more cyclical sectors such as Information Technology and Industrials.
One of the most helpful contributors was UnitedHealth Group, the US health insurer. The company’s share price rose during the month as it made progress toward resolving a legal issue, and investors appreciated its stable earnings profile in an uncertain environment. Tradeweb, a US-based fixed income trading platform, also supported returns as increased market volatility led to higher trading volumes across its platforms.
On the other hand, Schneider Electric weighed on results. The French energy management and automation business remains well positioned over the long term, particularly as demand grows for smarter, more efficient infrastructure. However, investor concerns around short-term spending plans by large data centre operators affected sentiment during the month.
During March, the portfolio introduced a new investment in Trade Desk, a US-based advertising technology company. It provides businesses with tools to manage and measure their online advertising in a transparent and independent way. The share price fell after a recent earnings result that came in below expectations, which presented an opportunity to invest at what we believe is an attractive valuation. We see Trade Desk as a long-term leader in the growing digital advertising space.
While the past month brought market challenges, our focus remains on building a portfolio of high-quality, well-managed businesses with strong long-term growth potential. Short-term volatility is a normal part of investing, and we continue to position the portfolio to generate reliable income and capital growth over time.