Diversified Portfolios - Intelligent Investor Growth - 31 July 2016

Intelligent Investor Growth July Portfolio Report
By · 1 Aug 2016
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1 Aug 2016
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After the fire and fury of Brexit, which handed our Growth Portfolio a loss of 4.1% for June (compared to a loss of 2.3% for the All Ordinaries Index), July was more sedate, with the portfolio and the index making it all back – and more – in almost straight line fashion.

By the end of the month, our portfolio had gained 7.1% compared to 6.3% for the index. Since the portfolio opened for investment on 1 July last year, it has delivered a total return of 20.8%, compared to 7.7% for the index. Since inception in 2001, it has returned 13.5% a year compared to the index’s 7.8%.

Among the best performers for the month were three of the portfolio’s smaller holdings, Nanosonics (up 25%), Hansen Technologies (up 22%) and Amaysim Australia (up 13%), which benefited from a return of risk appetite after the falls in June. South32 was another beneficiary of the improved sentiment, gaining 19% and rising to double its levels back in January.

Our two assisted reproductive services investments, Monash IVF and Virtus Health, gained 19% and 13% as investors continued to be attracted by their combination of yield and growth. Other notable gainers were IOOF Holdings and News Corp – which have both backed up their performances with solid results in early August.

Asian online car classifieds provider iCar Asia was the worst performer for the month, with a loss of 15% as investors digested the company’s weak June quarter sales figures. Since the end of July the company has warned that losses will increase sharply this year as it invests to consolidate its market-leading positions. A capital raising will now be needed and the shares have fallen another 40% since the end of July. The holding is worth less than 2% of the portfolio’s value, however, so the impact is relatively small.

Another notable faller has been Computershare, which lost 3% in July to add to its Brexit-inspired loss of 16% in June. Around a quarter of the company’s profits come from the UK, but it’s the focus for a larger slice of the company’s growth prospects so that proportion is likely to rise. Sterling’s 15% fall against the Aussie dollar since the Brexit vote will reduce the value of these earnings.




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 Growth Portfolio 8.47% 8.01% 16.16% 17.75% 20.69%
ASX All Ordinaries Accumulation Index 6.29% 7.07% 14.08% 4.02% 7.72%
Excess to Benchmark 2.19% 0.94% 2.09% 13.74% 12.97%

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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