Wilson Asset Management weekly: 3 macro-economic factors to impact your portfolio and NEXTDC

Chris Stott

Portfolio Manager

The S&P/ASX All Ordinaries Accumulation Index closed down 0.5% for the week. On Tuesday, the Reserve Bank of Australia kept its cash rate on hold at the record low of 1.5%, a decision which was widely anticipated by the market. On Wednesday, the Australian Bureau of Statistics released its June quarter gross domestic product (GDP) figures, reporting a 0.8% rise for the second quarter, slightly below expectations. In this week’s report we provide three macro-economic factors to impact your portfolio and a brief summary of NEXTDC’s FY2017 results.

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3 macro-economic factors to impact your portfolio

Since the global financial crisis (GFC), equity markets have been particularly affected by macro-economic factors. Identifying and understanding Australian and international drivers has therefore been a crucial element of investing. In an article in the Australian Investors Association’s Investors Voice magazine, Portfolio Manager Matthew Haupt discusses three key macro-economic themes with implications for your investment portfolio.  

NEXTDC above the clouds

Last Thursday, cloud-based telecommunications company NEXTDC Limited (ASX: NXT) announced its FY2017 results, reporting earnings before interest, tax, depreciation and amortisation (EBITDA) of $49.0 million which was in line with expectations. We believe the investments being made to expand NEXTDC's operational capacity reflects the strong demand for cloud computing and we expect new contract wins in the near term to support NEXTDC's strategy. Shares in NEXTDC closed up 2.4% for the week. We own NEXTDC as a research-driven investment in WAM Capital and WAM Research.


Chris was the Chief Investment Officer of Wilson Asset Management, having joined the company in 2006. He was also the Portfolio Manager responsible for WAM Capital (ASX:WAM), WAM Research (ASX:WAX), WAM Active (ASX:WAA) and WAM MicroCap (ASX:WMI).

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