Model Portfolios

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

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  a few cyclical stocks.

We 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.

Our Strategy

We 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.

We calculate the fair value of a stock based on expected future cash flows. Then we examine the technical outlook using Momentum and Buy/Sell indicators.

We only buy stocks that have a bullish fundamental and technical outlook and, as a general rule, only sell stocks when both are bearish. The exception to the sell rule is when we decide to increase our exposure to cash and fixed interest investments because global market risk is elevated.

Performance to 30 June 2019

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

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

International Growth performance calculated in Australian Dollars:

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.

For details of pricing, visit our Subscribe page.