The following portfolio returns are provided as a guide only and are in no way indicative of likely future performance. They are unaudited results from individual accounts grouped according to their common investment objectives that have been operating for a minimum of two years and stringently invested according to my recommendations (representing over 80% of all clients).
The portfolio returns include capital gains/losses, dividends, franking credits, interest and are after brokerage costs but before fees and taxes. The appropriate benchmarks to which they are compared include the SP200 yearly move plus an allowance for market dividends and franking credits. Where a portfolio weighting to cash/income securities is appropriate interest rates from Cash Management Trusts (sourced from the RBA website) have been used.
When you are reflecting on the portfolio returns please take into account what is important is not any one individual year's return but the result through an investment cycle. This is the basis upon which investment success should be measured.
Client Type: Essential
The objective of these portfolios is to generate income, provide exposure to growth opportunities and have a factor of capital preservation. Such clients probably live off the investment returns (e.g. allocated pension) and or the funds represent a significant percentage of a clients’ net worth and the client have little desire or opportunity to reproduce the asset base again (e.g. because retired). Essential Portfolios are made up of stable stocks, quality stocks, value stocks and cash/income securities. Income securities/cash make up approximately 50% of funds under advice.
The Benchmark portfolio has 50% exposure to stocks and 50% exposure to a CMT.
| |
Essential |
Benchmark |
Essential |
| |
Portfolio |
Portfolio |
vs Benchmark |
| |
|
|
|
| 2009/10 |
26.4% |
8.6% |
17.8% |
| 2008/09 |
5.0% |
-5.9% |
10.9% |
| 2007/08 |
-8.1% |
-3.0% |
-5.1% |
| 2006/07 |
21.7% |
16.7% |
5.0% |
| 2005/06 |
14.1% |
14.1% |
0.0% |
| 2004/05 |
9.1% |
15.3% |
-6.2% |
| 2003/04 |
21.1% |
12.5% |
8.7% |
| |
|
|
|
| accumulated return |
89.3% |
58.2% |
31.1% |
| average return |
12.8% |
8.3% |
4.4% |
| standard deviation |
11.9% |
9.1% |
|
| |
|
|
|
| return/risk |
1.07 |
0.91 |
|
Client Type: Balanced
Balanced Portfolios represent the greatest number of clients and cover the broadest client objectives. Here the portfolio consists of stable stocks, quality stocks, value stocks and cash/income securities usually as a fixed percentage of the portfolio (normally 30%). Here the objective is to achieve capital growth and income while mindful of owning an overpriced or fully priced investment portfolio.
The Benchmark portfolio has 70% exposure to stocks and 30% exposure to a CMT.
| |
|
|
Balanced |
Benchmark |
Balanced |
| |
|
|
Portfolio |
Portfolio |
vs Benchmark |
| |
|
|
|
|
|
| 2009/10 |
|
|
31.5% |
10.6% |
20.9% |
| 2008/09 |
|
|
2.3% |
-10.2% |
12.5% |
| 2007/08 |
|
|
-14.0% |
-6.7% |
-7.3% |
| 2006/07 |
|
|
27.1% |
21.3% |
5.8% |
| 2005/06 |
|
|
16.6% |
17.8% |
-1.2% |
| 2004/05 |
|
|
13.9% |
19.5% |
-5.6% |
| 2003/04 |
|
|
24.0% |
15.7% |
8.3% |
| |
|
|
|
|
|
| accumulated return |
|
|
101.4% |
68.1% |
33.3% |
| average return |
|
|
14.5% |
9.7% |
4.8% |
| standard deviation |
|
|
15.8% |
12.9% |
|
| |
|
|
|
|
|
| return/risk |
|
|
0.91 |
0.75 |
|
Client Type: Absolute
Absolute Portfolios are the most aggressive portfolios and consist of quality stocks, value stocks and cash/income securities only when quality and value opportunities cannot be identified. The objective of these portfolios is capital growth and income and have no set allocation to cash/income securities.
The Benchmark Portfolio has 100% exposure to stocks.
| |
|
|
Absolute |
Benchmark |
Absolute |
| |
|
|
Portfolio |
Portfolio |
vs Benchmark |
| |
|
|
|
|
|
| 2009/10 |
|
|
31.5% |
13.7% |
17.8% |
| 2008/09 |
|
|
0.5% |
-16.7% |
17.2% |
| 2007/08 |
|
|
-15.4% |
-12.1% |
-3.3% |
| 2006/07 |
|
|
29.1% |
28.2% |
0.9% |
| 2005/06 |
|
|
18.6% |
23.3% |
-4.7% |
| 2004/05 |
|
|
19.5% |
25.8% |
-6.3% |
| 2003/04 |
|
|
18.9% |
20.6% |
-1.7% |
| |
|
|
|
|
|
| accumulated return |
|
|
102.7% |
82.9% |
19.8% |
| average return |
|
|
14.7% |
11.8% |
2.8% |
| standard deviation |
|
|
16.6% |
18.5% |
|
| |
|
|
|
|
|
| return/risk |
|
|
0.88 |
0.64 |
|
Notes: the following assumptions have been used in preparing these performance figures
| |
SP200 |
Dividends |
SP200 & |
CMT's |
| |
%return |
& Franking |
Div/Frank |
Interest |
| |
|
|
|
|
| 2009/10 |
8.7% |
5.0% |
13.7% |
3.4% |
| 2008/09 |
-24.2% |
7.5% |
-16.7% |
4.9% |
| 2007/08 |
-16.9% |
4.8% |
-12.1% |
6.0% |
| 2006/07 |
23.7% |
4.5% |
28.2% |
5.3% |
| 2005/06 |
18.6% |
4.7% |
23.3% |
4.9% |
| 2004/05 |
21.0% |
4.8% |
25.8% |
4.8% |
| 2003/04 |
15.9% |
4.7% |
20.6% |
4.3% |
| |
|
|
|
|
| accumulated |
46.9% |
36.0% |
82.9% |
33.6% |
| average return |
6.7% |
5.1% |
11.8% |
4.8% |
| standdev |
19.3% |
1.1% |
18.5% |
0.8% |
| |
|
|
|
|
| ret/risk |
0.35 |
4.90 |
0.64 |
5.94 |
| 
