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 Carsales.com (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
PEFORMANCE SUMMARY TO 31 JANUARY 2016
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.
|PERFORMANCE TO 31 JANUARY 2016||1 MONTH||3 MONTH||6 MONTH||SI* (P.A.)|
|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%|
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