Diversified Portfolios - Intelligent Investor Equity Income - 31 May 2017
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 2017||1 MONTH||3 MONTH||6 MONTH||1 year||SI* (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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