So much has happened this New Year that it seems somewhat pointless dwelling too much on last year, so we will keep this portfolio report fairly short. Importantly, both portfolios finished in the black for 2015, with the growth portfolio outperforming the benchmark index by 4.11%.
On Thursday, we will publish our re-balanced income-oriented portfolio for 2016, and next Monday, our growth portfolio.
Performance
Both portfolios finished the year with small positive returns. Compared to the benchmark S&P/ASX 200 Accumulation Index (which adds back income from dividends), the income portfolio has underperformed the index by 0.61%, while the growth-oriented portfolio has outperformed by 4.11%.
Although these are only model portfolios and are reset each year, they have also outperformed over longer periods. Over three years, both portfolios have outperformed the S&P/ASX 200 accumulation index. The income portfolio by 1.90% pa, and the growth-oriented portfolio by 2.85% pa.
Income Portfolio
The income portfolio was forecast to return a yield of 5.14%, franked to 88.7%. It marginally exceeded this in 2015, returning 5.25%, franked to 88.2%.
Using closing prices on 31 December, the performance of the income-biased portfolio (per $100,000 invested) was:
Click here to download an Excel version
* On 31 March, reduced original $6,000 holding in Woolworths by 50%, and sold original $4,000 holding in Toll. $1,901 reinvested in Woodside, $2,000 in AMP, $3,000 in CBA and $2,000 in Telstra.
** South32 demerged from BHP on a 1:1 basis. NAB 2:25 rights issue – assume sold on last day of trading at $4.99. CBA 1:23 rights issue at $71.50, assume sold on last day of trading at $2.01. Westpac 1: 23 rights at $25.50, assume sold on last day of trading at $4.83
Growth Portfolio
Using closing prices on 31 December, the performance of the growth portfolio (per $100,000 invested) was:
Click here to download an Excel version
* On 31 March, reduced original $4,000 holding in Woolworths by 50%, and sold original $4,000 holding in Toll. $3,939 reinvested in Santos and $4,000 in Westfield.
** South32 demerged from BHP on a 1:1 basis. NAB 2:25 rights issue – assume sold on last day of trading at $4.99. CBA 1:23 rights issue at $71.50, assume sold on last day of trading at $2.01. Westpac 1: 23 rights at $25.50, assume sold on last day of trading at $4.83.
*** Santos acquired on 31 March at $7.14 sold for $5.13 on 31 August. Net amount of $2,830 reinvested in NAB at $31.17
Important: 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. Consider the appropriateness of the information in regards to your circumstances.
