What's on at Eureka Report and model portfolio updates

Welcome aboard Jon Mills, and looking forward to Peter Hall of Hunter Hall and Sebastian Evans of NAOS.

As you probably know Eureka Report recently joined the AWI stable and as part of that transition we have managed to lure stock analyst Jonathan Mills from our (new) sister publication Intelligent Investor.

Jon, who will from today work as an in-house senior analyst at Eureka, has degrees in Commerce (majoring in Finance and Accounting) and Law from Sydney University. After beginning his career in the tax division of Ernst & Young, he spent seven years in New York working in various roles in private equity. 

On returning to Australia, Jon joined the analyst team at Intelligent Investor in May 2014 where he covered the banks, the gaming and leisure sector and listed property trusts. Jon is also a CFA charterholder.

Jon Mills has joined the Eureka team. 

You’ll see a debut feature from Jon in next Monday’s edition (May 16). 

Meanwhile, watch out tomorrow evening (Tuesday) when we will post a new video interview with renowned fund manager Peter Hall of the Hunter Hall group, which will be hosted by Mitchell Sneddon.  Hall is the founder and guiding light of the ethical funds management group, he has recently returned from many years living in London – his unique view on the markets is always valuable.

Next week - on Thursday May 19 - Eureka video favourite Sebastian Evans of NAOS Asset Management will be back in the studio also with Mitchell Sneddon for an update on the NAOS Emerging Opportunities and Absolute Opportunities LICs. The team at NAOS are emerging company enthusiasts and this should be a great conversation about how to manage risk when journeying outside the ASX100 in search of strong returns. 

Income First model portfolio

Last week the Income First model portfolio had a relatively strong performance, driven by the positive market response to bank reporting season. In particular, the outperformance of ANZ and NAB was the largest contributor to the portfolio’s growth, providing some relief after an extended period of poor performance from banks generally (Read more here: NAB, and ANZ.

Looking forward, it’s worth noting that ANZ and NAB are expected to trade on an ex-dividend basis on May 9 and May 17 respectively. For the moment, we remain comfortable with the current portfolio.

Growth First model portfolio 

No changes to the growth portfolio this week. Investors need to be aware the smaller cap stocks can be volatile by nature and this is why we have a carefully weighted and diversified portfolio. A stock like the latest entrant XTD Limited will be volatile. It has bounced around off the back of no news since we have brought it in. Short-term fluctuations will happen but it is the underlying business we focus on. 

LIC model portfolio

There are no changes to the model portfolio this week. BKI finished its share purchase plan raising $28.2 million. As chief executive Tom Millner mentioned, the funds will be deployed into a handful of high quality dividend paying stocks that he sees opportunity in right now.

This week I have taken a closer look at two LICs on our watch list, Mirrabooka Investments (MIR) and AMCIL Limited (AMH). Both LICs come out of the Australian Foundation Investment Company stable – neither have performance fees and have low running costs when compared to similar LICs. Click here to read more: Our LICs watchlist.   

Stock

Code

Date

NTA

Current Share Price

BKI Investment Company

BKI

30/04/16

$1.54

$1.58

Bailador Technology Investments

BTI

31/03/16

$1.16

$1.075

Magellan Flagship

MFF

29/04/16

$1.983*

$1.875

PM Capital Asian Opp.

PAF

29/04/16

$1.0413*

$0.935

Perpetual Equity Investment Co.

PIC

05/05/16

$1.018*

$0.925

Thorney Opp.

TOP

29/04/16

$0.599

$0.54

WAM Research

WAX

31/03/16

$1.203

$1.32

*Not including dilution effect of outstanding options

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