Balanced Portfolio Rebalance
Date: 19/12/2024
*** GENERAL ADVICE ONLY***
In Mid December last year, we went to a high level of cash (15%) due to uncertainty around incoming President Trump’s policies. During this time, the market has fallen up 4% in the local market and made its wat back to where we reduced our risk in December.
Now President Trump has taken office and announced some general policies, we are of the view that the US president’s extreme threats on tariffs, seem to be being gradually watered down and see a reduced risk of a trade war.
While uncertainty still remains, we see much of it to be “noise” on a macro level and not affect quality companies with near term catalysts.
That in mind we are recommending
BUY 5% Intl Quality ETF (QUAL)
BUY 5% CSL (CSL)
ADD 2.5% Johns Lyng Grp (JLG)
Switch URNM ETF to Paladin (PDN)
BUY 5% Intl Quality ETF (QUAL)
The QUAL ETF, officially known as the VanEck MSCI International Quality ETF, is an exchange-traded fund that focuses on providing exposure to high-quality international companies.
Fund Overview
The QUAL ETF aims to track the performance of an index comprising quality international companies listed on exchanges in developed markets worldwide, excluding Australia. As of January 17, 2025, the fund had the following key characteristics:
- Net Asset Value (NAV): $58.76
- Total Net Assets: $7.14 billion
- Number of securities: 301
- Inception Date: October 29, 2014
- Management fee: 0.40% per annum
- Dividend Frequency: Once per year
Investment Strategy
The QUAL ETF focuses on investing in what it considers to be the world’s highest quality companies, based on three key fundamental factors:
- High return on equity
- Earnings stability
- Low financial leverage
This strategy is designed to potentially deliver outperformance over the long term relative to global equity benchmarks.
BUY 5% CSL (CSL)
Active Management Strategy
For maturing growth companies with small dividends we can adopt an active management strategy. CSL is one of those we have successfully managed actively to get a far better result than simply “buy & hold”.
Using our technical analysis in identifying and timing the entry and exit points, our active management strategy has out -performed simply holding the stock over the last 4-5 years
ADD 2.5% Johns Lyng Group (JLG)
Insurance Repairer, JLG US operations will be busy
On the back of $200B in damage from 3 significant Hurricanes last year we have started the 2025 with the L.A. fires.
Damage is speculated to be the most financially damaging “climate event” in US history at $200B+
Johns Lyng Group (JLG ) operates in all the key areas (see diagram above) and will likely have a backlog of work for the foreseeable future.
SWITCH URNM ETF to Paladin (PDN)
Uranium Exposure
over the last 18 months, we have maintained a 5% exposure to Uranium as a long term thematic.
Early sucess in Paladin Last year saw us take profit in Paladin (PDN) and switch to the safer and more diversified ETF, URNM.
This move not only achieved more profit initially, it has since saved us 50% by using the safer ETF option as out preferred holding.
Paladin has since listed on the Canadian Stock exchange via it purchase of Fission Uranium to form what will be the 3rd biggest Global uranium producer and diversifying the company geographically.
Post Paladin’s quarterly update and Trumps AI data Center announcement (which will require a HUGE amount of base load energy, likely from nuclear) we see a clear catalyst to re-enter Paladin and it is one of MPC’s High Conviction Picks
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.