Portfolio changes to Sestante Dynamic managed accounts

8 August 2023
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Portfolio Changes to Sestante Dynamic Managed Accounts

All portfolios sold their holding in Bennelong Ex 20 Australian Equities and allocated 60% to IOZ, Ishares Core S&P/ASX 200 ETF, and 40% to First Sentier Australian Small Companies. Due to the small holding the Conservative portfolio only purchased IOZ.  Bennelong Ex 20 has underperformed over the last 18 months and we do not feel that market conditions over the next six to 12 months will favour Bennelong’s approach. We have maintained an exposure to the ex-100 part of the market through the use of the First Sentier Small Companies fund for 40% of the Bennelong allocation, which we believe to be a more style-neutral, defensive option. The remainder of the Bennelong allocation has gone to IOZ.

 Conservative  Moderately
 Balanced  Assertive  Aggressive
 Bennelong Ex 20 -1.3% -3.0% -4.6% -6.7% -8.3%
 FSI Small Co’s 1.2% 1.8% 2.7% 3.3%
 IOZ 1.3% 1.8% 2.8% 2.0% 5.0%

Portfolio Changes to Sestante ESG Focus Dynamic Managed Accounts

All portfolios sold their holding in Ironbark Royal London Concentrated Global Share fund as the manager has recently purchased 2 tobacco stocks in the portfolio which the investment committee felt did not meet the ESG Focus screens. The fund was replaced by the AXA IM Sustainable Equity fund.

For the Sestante ESG Focus Conservative portfolio there was also a reallocation of 4% between our Australian and International Fixed Income to bring the portfolio into line with our asset allocation ranges.

 Conservative  Moderately
 Balanced  Assertive  Aggressive
 Ironbark Royal London Cons. Global Share Fund -4.0% -5.4% -7.4% -9.6% -9.8%
 AXA IM Sustainable Equity Fund 4.0% 5.4% 7.4% 9.6% 9.8%


For more information, please contact Andrew Davies or Joel Sasim.