Income portfolio plods along

Despite being clobbered by the index in 2012, the model Income portfolio has performed exactly as intended.

For the model Income portfolio, 2012 was a bit like the banker who took delight in a $1m bonus until he found out his colleague got $2m.

On 1 January 2012, we would have been delighted to know that the Income portfolio would return 10.9% for the year. But with the All Ordinaries Accumulation Index increasing 18.8%, it doesn’t feel quite as good now.

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