Well, the Big D has lobbed his tariff grenade, and at the time of writing the markets were still absorbing the explosion and shrapnel.
Disruption was to be expected, so no surprises there, but what comes next? Who knows, and that might be part of his strategy. If the longer aim of the game is truly to restore American manufacturing, it might work – in time. But it just can’t happen overnight, and in the meantime the road ahead is not easy to see.
Rebuilding local manufacturing will require, among other things:
- Infrastructure – factories and capital equipment suitable for industries the country might have mothballed years ago;
- Labour, a lot of which he’s booting out of the country;
- Supply chains that have been out of action but now also need to be re-built;
- Investment – which will require confidence that the policy and its instigator will still be relevant a few years hence.
In the meantime American consumers will most likely be hit with higher prices for imported goods, supply shortages and hits to economic growth. While trading partners will have to deal with the fallout, including how much of their own fuel they tip on the fire.
So, hope for the best, but prepare for the worst. Those of you who’ve been with us for a while will hopefully understand that we worry at least as much about what happens in the bad times as the good. And at our last round of Investor Updates we re-iterated the pillars of our advice, which include:
- At the investment level, it’s far more than just chasing returns. It includes analysis of things like worst case scenarios and recovery times;
- At an individual level, organising investors’ portfolio mix to minimise the risk of having to sell assets at a bad time – which is what really does the damage. If you are well-placed to ride out the storm, the risk is contained.
The latter is at least as important as the former, particularly in protecting you from lurching markets. We re-iterate that all our investment clients, whether or not you use one of our personal advice packages for specific advice on your broader financial affairs, are welcome to advice on your investment and portfolio mix, without additional charge. If you would like a check-up, please do not hesitate to call.
One for the community
Twice a year the ARA team fronts up to assist Fareshare (now merged with Secondbite) in the preparation of thousands of meals every day for those in need. That it’s mainly done with reclaimed food that would otherwise go to waste makes it a win-win! Here’s the gang after our last stint in March at the very impressive, expanded premises in Abbotsford.
Wedding Belle
And on February 8 our very own Stephanie and her beau Keith tied the knot in a lovely ceremony down Mornington Peninsula way.
Here they are, about to head off on their honeymoon in the company car.
So, who’s got what?
The table below shows the ARAIF’s investments at the time of writing. Please note, the percentages refer to the proportion of each portfolio allocated to that investment, not its rate of return.
Major Holdings – diversified portfolios
Apart from bank deposits and other interest-bearing accounts, Defensive, Growth and Equities portfolios invest in a range of assets through the fund managers listed in the table above. If we drill through to the assets selected and overseen by those managers, there are in fact over a hundred individual securities providing diversification of risk and exposure to a wide range of opportunities.
The table below shows the 20 largest individual holdings and what proportion of each portfolio they represent. These are the investments that will have the biggest impact on the portfolios’ returns.
Returns quoted in this report are after all costs, and before the application of management fee rebates. Return figures are pre-tax, and include the value of franking credits from franked dividends. Total return figures assume the re-investment of gross distributions including franking credits. 3-month return figures are for the period to 31 March 2025 and are not annualized.
ARA Consultants Limited provides this update for the information of its clients and associates. If you do not wish to receive this or other information about ARA in future, please contact us on (03) 9853 1688.
This document has been issued by ARA Consultants Limited for its own use and the use of its clients. Fundhost Limited (ABN 69 092 517 087) (AFSL No: 233 045) (Fundhost) is the issuer of the ARA Investment Fund (ARSN:104 232 448). Information contained in this document is general information and is not intended to constitute nor does it purport to offer any specific or individual investment advice. Whilst every effort has been made to ensure the accuracy of the information contained in this document, neither ARA nor Fundhost accept any liability in relation to anyone who makes and acts upon a decision based upon that information. No person should make a decision based upon the information contained in this document without first seeking and obtaining the appropriate professional advice relevant to their own individual circumstances and financial needs. You should consider the Product Disclosure Statement in deciding whether to acquire, or continue to hold the product. The PDS and applicable Target Market Determinations are available at www.araconsultants.com.au or by contacting ARA by phone on (03) 9853 1688 or by email at info@araconsultants.com.au. We also caution that past returns are just that, and the fact that they have been achieved previously does not guarantee or imply that they will be achieved again.
If you would like a pdf version of this update for your files you can download it here: March 2025 Quarter Investment Update.
