Overview: As central banks have increased rates, the committee has resolved to reduce exposure to some fixed income strategies in favour of infrastructure where underlying cashflows are more closely linked with inflation.

As central banks have increased rates, the committee has resolved to reduce exposure to some fixed income strategies in favour of infrastructure where underlying cashflows are more closely linked with inflation. This would be another way to enhance income to the total portfolio. The committee holds the view that inflation is likely to remain sticky.

Existing income producing strategies such as first mortgages and corporate credit have been beneficiaries of RBA rate rises with increased income flowing to investors. Listed property has suffered in the most recent period, but notwithstanding still provides attractive longer-term income.

The current weighted income of the portfolio has risen from approx. 4.77% to 5.17% p.a.

The committee made no changes to the portfolio this month.