Model Portfolios

We run two model portfolios based on our investment strategy:

International Growth consists mainly of growth stocks listed on the NYSE/Nasdaq, and includes many multinationals, but may include stocks listed elsewhere and at times will include cyclical stocks or ETFs (e.g. gold).

Australian Growth is a far more diverse portfolio, consisting of ASX listed stocks. The portfolio includes stocks held primarily for their strong dividend income streams as well as cyclical stocks held for appreciation through the economic/commodity cycle.

The portfolios have been run for clients since late 2017. Performance has so far been excellent but varies between clients depending on individual selections and entry dates. Hence the need for a model portfolio to provide an objective measure of performance.

Performance

Australian Growth performance since the creation of the model portfolio on July 1st 2018:

Australian Growth Annualized Performance 1-Jul-2018 to 30-Apr-2020: Portfolio 7.18%, ASX 200 Accumulation Index -1.96%

International Growth performance since the creation of the model portfolio on July 1st 2018, calculated in US Dollars:

International Growth in USD Annualized Performance 1-Jul-2018 to 30-Apr-2020: Portfolio 11.72%, S&P 500 Total Return Index 6.19%

International Growth performance calculated in Australian Dollars:

International Growth in AUD Annualized Performance 1-Jul-2018 to 30-Apr-2020: Portfolio 19.71%, S&P 500 Total Return Index 13.79%

The period is too short to give a real indication as to how the portfolios will perform in the long-term. We expect to hold most growth stocks for 5 to 10 years.

Notes

  • Annualized performance is calculated using the CAGR formula.
  • Returns are calculated after transaction costs (e.g. brokerage) but exclude all other fees and charges.
  • Past performance is not a guarantee of future performance.

Past Performance

Hypothetical $1 million invested in the Australian Growth portfolio on July 1, 2018.

Hypothetical AUD 1 million invested on July 1, 2018 would have grown to 1.14 million by April 30, 2020, compared to the ASX 200 Accumulation Index (XJOA) which would have fallen to 0.96 million.

Hypothetical $1 million invested in the International Growth portfolio on July 1, 2018.

Hypothetical USD 1 million invested on July 1, 2018 would have grown to 1.23 million by April 30, 2020, compared to the S&P 500 Total Return Index (SPXT) which would have grown to 1.12 million.

International Growth performance converted to Australian Dollars.

Hypothetical AUD 1.35 million (equivalent of USD 1 million) invested on July 1, 2018 would have grown to 1.88 million by April 30, 2020, compared to the S&P 500 Total Return Index (SPXT) which would have grown to 1.71 million.

Next