Diversified Portfolios - Intelligent Investor Equity Income - 31 May 2017

Intelligent Investor Equity Income May Report

For most of this financial year, the Intelligent Investor Equity Income Portfolio has been struggling to keep up with the surging banking sector. But there was a sharp turnaround in May, with the big four banks giving up a whopping 12%, on average, due in large part to the Government’s plan to impose a levy amounting to around 4% of their net profit.

Since they contribute around 25% of the All Ordinaries Index, that knocked it down by about 3% alone, largely accounting for its 2.6% fall. Our Equity Income Portfolio only holds around 10% in the big banks, so the drag on it was closer to 1%, and it managed to overcome that to post a flat performance.

The best performers for May were Ainsworth Game Technology (up 19%), Flight Centre (up 14%) and Sydney Airport (up 8%). Besides the banks, GBST was the worst performer, falling 8%.

PERFORMANCE TO 31 MAY 20171 MONTH3 MONTH6 MONTH1 yearSI* (P.A.)
Intelligent Investor Equity Income Portfolio -0.12% 5.67% 7.22% 11.21% 14.16%
ASX All Ordinaries Accumulation Index -2.58% 1.28% 6.88% 10.23% 7.58%
Excess to Benchmark 2.46% 4.39% 0.34% 0.98% 6.58%

 

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