Portfolio review
The Northward Equity Income Fund (NEIF) was +1.30% for the month of April. Option Income for the month was mainly captured from QBE Insurance, BHP Billiton, Amcor, Worley Parsons and Resmed. The fund had no significant income from dividends during the month of April. The fund’s average market exposure continues to be less than half the market exposure of its underlying benchmark.
The S&P/ASX 100 Accumulation Index closed up 1.94% for the month of April with the index at one point being up as much as 2.8% higher during the course of the month. Australian equity markets shrugged off escalating tensions in Ukraine and traded higher on the back of the REITs, Utilities and Banks sectors. Significant company news saw Coca-Cola Amatil downgrade first half 2014 profit guidance and South African based Woolworths Holdings make a cash bid of $4 billion for David Jones (held in NEIF). Domestic macro data was mixed with the unemployment rate coming in at 5.8% and below expectations of 6.1%. Retail sales were 0.2% higher for the month and up 4.9% year on year. Inflation for the quarter came below expectations at +0.6%, while Australian building approvals fell 5% for the month. The RBA left rates unchanged at 2.5% early in the month and the AUD traded higher, before retreating to close at 92.8c.
