Model Portfolios

I created two model portfolios of growth stocks, based on my investment strategy, on July 1st, 2018:

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 and includes stocks that generate strong dividend income and cyclical gold and resources stocks.

I have run these portfolios 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 30 September 2018

Australian Growth portfolio performance for the three months since creation of the model portfolios on 1 July 2018 is 0.77%, compared to 1.81% for the ASX 200 Accumulation Index (XJOA).

Australian Growth Portfolio Performance

International Growth portfolio performance for the same period is 12.02%, calculated in US Dollars, compared to 8.24% for the S&P 500 Total Return Index (SPXT).

International Growth Portfolio Performance

The US market is undergoing a correction at present and we expect both the portfolio and the S&P 500 index to retreat in October 2018.

Three months is also too short a period 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 and it will take time to establish a consistent pattern.

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