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 31 October 2018

Australian Growth portfolio performance for the three months since creation of the model portfolios on 1 July 2018 is -5.03%, compared to -4.35% for the ASX 200 Accumulation Index (XJOA).

Australian Growth Performance

International Growth portfolio performance for the same period is -0.65%, calculated in US Dollars, compared to 0.84% for the S&P 500 Total Return Index (SPXT).

International Growth Performance

The market underwent a correction in October and has recovered somewhat since month-end. It is important during corrections like this not to react to price movements and instead focus on underlying performance.

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.

To access model portfolios and regular research updates on individual stocks, please visit our Subscribe page.