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Diversified Portfolios - Intelligent Investor Equity Income - 31 January 2016

Intelligent Investor Equity Income Portfolio January Report



After a very merry Christmas on the share market, which saw the All Ordinaries Index gain 8% in the final two weeks of 2015, Santa took back all his presents in a tumultuous start to 2016, as fears over Chinese growth returned with a vengeance.

The All Ords ended the month with a loss of 5.4%. Our Equity Income Portfolio beat that comfortably, but that will be scant consolation since it still fell 4%. Since inception in 2001, the portfolio has now returned 13.1% a year, compared to 7.2% for the All Ords.

Resources led the way down, with BHP Billiton, Origin Energy and South32 losing 14%, 13% and 8% for the portfolio respectively. Only just behind were the portfolio’s ‘market-facing’ financial stocks, including IOOF Holdings (down 14%), Perpetual (down 11%) and Computershare (down 10.5%).

The other side of the ledger was looking pretty thin, with only three stocks making it into positive territory: serviced office provider Servcorp, which added 6%, Sydney Airport (up 4%) and (up 1%)

.Despite the volatility, the portfolio was happy with its positions and there were no additions or disposals during the month.


The investment objective is to achieve an income return of 5% from a portfolio of high yielding shares selected from the All Ordinaries Index per annum.

GROWTH OF $10,000

Income Reinvested


Source: Praemium, RBA. Returns are before expenses and fees. Returns are shown as annualised if the period is over 1 year. * Since Inception (SI) date is 1 July 2015.

Intelligent Investor Equity Income Portfolio -4.03% 0.04% 1.73% 4.80%
ASX All Ordinaries Accumulation Index -5.38% -3.54% -8.82% -4.96%
Excess to Benchmark 1.35% 3.59% 10.55% 9.76%

Important Information

While every care has been taken in preparation of this document, InvestSMART Financial Services Limited (ABN 70 089 038 531, AFSL 226435) (“InvestSMART”) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and see professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. This document has been prepared for InvestSMART by InvestSense Pty Ltd ABN 31 601 876 528, Authorised Representative of Sentry Asset Management Pty Ltd AFSL 408 800. Financial commentary contained within this report is provided by InvestSense Pty Ltd. The information contained in this document is not intended to be a definitive statement on the subject matter nor an endorsement that this model portfolio is appropriate for you and should not be relied upon in making a decision to invest in this product. The information in this report is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. No representations or warranties express or implied, are made as to the accuracy or completeness of the information, opinions and conclusions contained in this report. In preparing this report, InvestSMART and InvestSense Pty Ltd has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us. To the maximum extent permitted by law, neither InvestSMART, InvestSense Pty Ltd or their directors, employees or agents accept any liability for any loss arising in relation to this report. The suitability of the investment product to your needs depends on your individual circumstances and objectives and should be discussed with your Adviser. Potential investors must read the PDS, Approved Product List and FSG along with any accompanying materials. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income, but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Past performance of financial products is not a reliable indicator of future performance. InvestSense Pty Ltd does not assure nor guarantee the performance of any financial products offered. Information, opinions, historical performance, calculations or assessments of performance of financial products or markets rely on assumptions about tax, reinvestment, market performance, liquidity and other factors that will be important and may fluctuate over time. InvestSense Pty Ltd, InvestSMART Financial Services Limited, its associates and their respective directors and other staff each declare that they may, from time to time, hold interests in Securities that are contained in this investment product.

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