September 21 Portfolio Update
The objectives, methodology, construction rules and underlying economic assumptions for our model portfolios can be referenced here: (see: https://switzersuperreport.com.au/our-portfolios-for-2021/ )
These are long-only model portfolios, and as such, they are assumed to be fully invested at all times. They are not “actively managed”, although adjustments are made from time to time.
Performance in calendar year 2021
The income portfolio to 30 September has returned 16.95% and the growth oriented portfolio has returned 14.07% (see tables at the end). Compared to the benchmark S&P/ASX 200 Accumulation Index (which adds back income from dividends), the income portfolio has outperformed by 2.12% and the growth portfolio has underperformed by 0.76%.
Income Portfolio
The objective of the income portfolio is to deliver tax advantaged income whilst broadly tracking the S&P/ASX 200.
The income portfolio is forecast to deliver an income return of 4.04% (based on its opening value at the start of the year), franked to 77%. After 9 months, thanks to higher than forecast bank and resource company dividends, it has delivered 4.16%, franked at 79.4%. It is on track to comfortably exceed the full year forecast.
In the month of September, the income portfolio lost 0.98%, outperforming the benchmark by 0.87%. Year to date, it has outperformed the benchmark by 2.12%.
The income biased portfolio per $100,000 invested (using prices as at the close of business on 30 September 2021) is as follows:
¹ Endeavour Group demerged from Woolworths on 24 June 2021, 1 EDV share for each WOW share. Shown with zero cost base.
² Transurban Entitlements, 1:9 at $13.00
Growth Portfolio
The objective of the growth portfolio is to outperform the S&P/ASX 200 market over the medium term, whilst closely tracking the index.
In the month of September, the growth portfolio lost 1.88%, matching the performance of the benchmark index. Year to date, it has underperformed the benchmark by 0.76%.
Our growth oriented portfolio per $100,000 invested (using prices as at the close of business on 30 September 2021) is as follows:
¹ Endeavour Group demerged from Woolworths on 24 June 2021, 1 EDV share for each WOW share. Shown with zero cost base.
Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
