Model Portfolios

We run two model portfolios of growth stocks, based on our investment strategy:

Our Strategy

Invest in stocks that stand to benefit from secular trends (global trends expected to last a generation or more). They include renewable energy, online services, the Internet of Things, cyber-crime, medical technology, ageing populations (developed economies & China), and an expanding Asian middle class.

Calculate the fair value of stocks based on expected future cash flows.

Assess the technical outlook using Momentum and Buy/Sell indicators.

We only buy stocks that have both a bullish fair value and technical outlook and, as a general rule, only sell stocks when both are bearish. The exception to the sell rule is when we believe global market risk is elevated and decide to reduce our overall exposure to equities.

Model Portfolios & Performance

International Growth consists mainly of stocks listed on the NYSE or Nasdaq, and includes many multinationals, but may include stocks listed in Asia, Europe or elsewhere.

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 to 29 February 2020

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

Performance since Inception: Portfolio 13.45%, Benchmark 11.72% (1-Jul-2018 to 29-Feb-20)Annualized Performance: Portfolio 7.87%, Benchmark 6.88% (1-Jul-2018 to 29-Feb-20)

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

International Growth in USD - Performance since Inception: Portfolio 18.55%, Benchmark 12.9% (1-Jul-2018 to 29-Feb-20)

International Growth performance calculated in Australian Dollars:

International Growth in AUD - Performance since Inception: Portfolio 34.83%, Benchmark 28.41% (1-Jul-2018 to 29-Feb-20)Annualized Performance in AUD: Portfolio 19.64%, Benchmark 16.19% (1-Jul-2018 to 29-Feb-20)

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.


  • 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.

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