Dodging the housing crash in your portfolio

We understand that many of our investors are concerned by the ongoing pullback in Australian house prices, and are now worried about this having an impact on their stock portfolios.

As prices move from a long overdue correction, potentially into a serious meltdown, it is easy to see how this will have an increasing effect on companies whose profit margins rely on the housing market.

Therefore, we are pleased to announce a new portfolio screen, called Limit Australian Housing Exposure which removes Australian developers, Banks, REIT’s and housing-related consumer staples.

If you are an investor – head over to your MB Fund Client Portal and update this change in the Ethical Screens page. We will make the change within a week of selecting it for you.

If you are not yet an investor, feel free to check out the Onboarding Portal, or watch a short tour of what it looks like to be an investor with us.

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Tim Fuller is Head of Operations at the Macrobusiness Fund, which is powered by Nucleus Wealth.

The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Tim Fuller is an authorised representative of Nucleus Wealth Management, a Corporate Authorised Representative of Integrity Private Wealth Pty Ltd, AFSL 436298.

Comments

  1. Hmm, shouldn’t you guys just be moving out of it as par for course? Isn’t that what a managed fund is about mostly? Asking to stay in would be more relevant.

    • +1
      I just want that decision made for me. The potential to lose money due to an upcoming recession isnt an ethical question for me. Just do that if thats what it takes to manage my dough…

    • We are out to the extent that the fund’s constitution allows. for instance, the income fund has almost no Aussie shares and all fund’s are max long local bonds. But like all core holding fund’s we have limits on how far we can tilt the portfolio any given way. These are in place to prevent very heavy weightings to any one trade given we might be wrong.

      The new screen is for those with high conviction that would like to express a view on this risk in their allocations.

      • Not sure I buy that response.
        The fund actively manages some of my money. There are a large number of trades and a steady flow of fees.
        I was surprised to find any bank shares in the portfolio and wondered why they were there given the convictions of MB and the active management of the fund.

      • It is what it is. All balanced funds work this way. The MB funds are all about reduced vol and outperformance over the long term. So far they have delivered just that.

        If you want more extreme positioning you can use the screen, do it yourself or look for a hedge fund.

  2. Who bought the BoQ covered bonds? Mostly super funds where you can choose growth level (lol) and RE. Also 2 reason for less RE investment from super, unemployment drawdown and less contribution.

    • Yep, if your basically chasing US earnings, csl etc fine but what else? Do you continue to go long resources