Our model portfolios

Co-founder of the Switzer Report
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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-2020/)

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. A small adjustment was made at the end of February and another at the end of March.

Performance in 2020

The income portfolio to 31 August has lost 13.32% and the growth oriented portfolio has lost 7.03% (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 underperformed by 5.89% and the growth portfolio has outperformed by 0.40%.

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 was originally forecast to generate a yield on its opening value of 4.65%, franked to 78%. This will now not be achieved in the Covid-19 environment. A yield closer to 3.5% is more likely. After eight months, the portfolio has delivered an income return of 2.50% (franked to 76.9%). This includes Orora’s special dividend of 37.3c, which was 50% franked.

In August, the income portfolio returned 0.85% for a relative underperformance of 1.98%.

Following changes in February and March, no further portfolio changes are proposed at this at this point in time.

The income biased portfolio per $100,000 invested (using prices as at the close of business on 31 August 2020) is as follows:

¹ Link sold on 28 Feb at $4.70 to realise loss of $792. Net proceeds of $3,208 invested in Medibank at $2.83 (cum-dividend)
² Santos sold 31 March at $3.42 to realise loss of $2,328. Net proceeds of $1,672 invested in Woolworths at $35.10
³ Orora capital return of 12.4c, special dividend of 37.3c, and 0.8 new shares for 1 existing share consolidation

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 August, the growth portfolio returned  3.15% for a relative outperformance of 0.32%.

Following changes in February and March, no further portfolio changes are proposed at this at this point in time.

Our growth oriented portfolio per $100,000 invested (using prices as at the close of business on 31 August 2020) is as follows:

¹ Link sold on 28 Feb at $4.70 to realise loss of $792. Net proceeds of $3,208 invested in $2,000 CSL at $309.44 and $1,208 Xero at $73.55.
² Santos sold 31 March at $3.42 to realise loss of $2,328. Net proceeds of $1,672 invested in Woolworths at $35.10
³ Orora capital return of 12.4c, special dividend of 37.3c, and 0.8 new shares for 1 existing share consolidation
⁴ TPM/VHA Scheme of Arrangement. Includes special dividend of 33c and demerger of Tuas Ltd (1 share in TUA for every 2  shares in the old TPG)

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 regard to your circumstances.

Read these updates:

  1. Our July portfolio review, 3 August 2020
  2. Our June portfolio review, 6 July 2020
  3. Our May portfolio review, 1 June 2020
  4. Our April portfolio review, 4 May 2020
  5. Portfolios get walloped but track to index, 6 April 2020
  6. Portfolios hit by Coronavirus, 2 March 2020
  7. Portfolios start the year with a bang, 3 February 2020
  8. Our portfolios for 2020, 13 January 2020
  9. Portfolio returns up despite Westpac woes, 2 December 2019
  10. A surge in CSL sends our growth portfolio higher, 4 November 2019
  11. Portfolios surge as ASX heads towards best year since 2009, 3 October 2019
  12. Portfolios ease as the ASX hits trade war turbulence, 2 September 2019
  13. Portfolios rise as the ASX hits a record high, 5 August 2019
  14. Income portfolio up almost 20%, 1 July 2019
  15. Portfolios record gains for 5th month in a row, 3 June 2019
  16. Portfolios return 13% in strong start to year, 6 May 2019
  17. Strong first quarter for Switzer portfolios, 1 April 2019
  18. Portfolios up 10% after two months, 4 March 2019
  19. Our portfolios start 2019 with solid gains, 4 February 2019
  20. Here are our portfolios for 2019, 14 January 2019
  21. Portfolios hold their ground in December, 7 January 2019
  22. Portfolios outperform in a soft market, 3 December 2018
  23. Portfolios follow market lower in October, 5 November 2018
  24. Switzer portfolios steady as market pulls back, 4 October 2018
  25. Our portfolios gain as reporting season pushes market higher, 3 September 2018
  26. Portfolios outperform as market adds 1.4% in July, 6 August 2018
  27. Market finishes on a high in June, 2 July 2018
  28. Growth sectors lead market higher in May, 4 June 2018
  29. Market surges in April, 7 May, 2018
  30. Trade fears put pressure on portfolios, 5 April, 2018
  31. Reporting season sees portfolios finish flat, 5 March, 2018
  32. Portfolios start the year with small gains, 5 February, 2018
  33. Our portfolios for 2018, 15 January, 2018
  34. Growth portfolio adds 4.7% in October, 6 November, 2017
  35. Portfolios underwhelm in September , 5 October, 2017
  36. Reporting season blues in August , 4 September, 2017
  37. Portfolios post modest gains in July, 7 August, 2017
  38. Positive returns for first half of 2017 , 3 July, 2017
  39. Aussie market weaker in May , 5 June, 2017
  40. Portfolios up in April, 1 May 2017
  41. Portfolios add 3% in March, 3 April, 2017
  42. Portfolios track market higher in February , 6 March, 2017
  43. Portfolios marginally weaker in January , 6 February, 2017
  44. Our growth-oriented stock portfolio for 2017 , 19 January, 2017
  45. Our high-income stock portfolio for 2017 , 16 January, 2017
  46. Portfolios power ahead in December, 12 January, 2017
  47. Portfolios outperform in November, 5 December, 2016
  48. Portfolios outperform in October, 07 November, 2016
  49. Portfolios move higher in September, 10 October, 2016
  50. Portfolios hold gains in August, 5 September, 2016
  51. Portfolios surge in July, 1 August, 2016
  52. Income portfolio performs strongly in June, 4 July 2016
  53. Porftolios in the black after strong May, 6 June 2o16
  54. Income portfolio makes strong gains in April, 2 May, 2016
  55. Income portfolio surges in March, 4 April, 2016
  56. Portfolios keep pace in tough market, 7 March, 2016
  57. Portfolios outperform in January, 1 February, 2016
  58. Our growth-oriented stock portfolio, 18 January, 2016
  59. Our high-income stock portfolio for 2016, 14 January 2016
  60. Portfolios outperform in tough year, 11 January, 2016
  61. Portfolios outperform in flat market, 3 December, 2015
  62. Portfolios lower but still outperform market, 6 October, 2015
  63. Portfolios track market lower in August but still beat index, 7 September, 2015
  64. A great start to the financial year – portfolios power ahead in July, 3 August, 2015
  65. Red ink in June, but portfolios maintain outperformance, 6 July, 2015
  66. Small gains in May, 1 June, 2015
  67. Banks drag portfolio lower in April but still ahead of market, 4 May, 2015
  68. Portfolios outperform in March, 7 April, 2015
  69. Portfolios surge in February, 3 March, 2015
  70. Portfolios enjoy a strong January, 2 February, 2015
  71. Our growth-oriented stock portolio, 19 January, 2015
  72. Our high-income stock portfolio for 2015, 12 January, 2015
  73. Portfolios finish in the black – income portfolio outperforms, 5 January, 2015
  74. Oil price plunge sends portfolios lower in November, 1 December 2014
  75. Portfolios recover ground in October – banks lead the market higher, 3 November 2014
  76. SSR portfolio update – “dollar” stocks make ground, 7 October 2014
  77. Market on a high – portfolios finish up in August, 1 September 2014
  78. Market on a high in July, 4 August 2014
  79. Portfolios struggle in June, 7 July 2014
  80. SSR portfolio update – income outperforms, 2 June 2014
  81. SSR April Portfolio review, 5 May 2014
  82. SSR Portfolio review for March, 7 April 2014
  83. The Switzer Super Report portfolios in February, 3 March 2014
  84. Our growth-oriented stock portfolio review, 20 January 2014
  85. Our high-income stock portfolio for 2014, 13 January 2014
  86. Portfolios end year on a high, 6 January 2013
  87. Portfolios hold ground in November, 2 December 2013
  88. Portfolio’s rocket ahead – up by over 24%, 4 November 2013
  89. Switzer portfolios outperform again, 3 October 2013
  90. Switzer portfolios continue to outperform, 2 September 2013
  91. As BHP and RIO bounce back, SSR portfolios outperform, 5 August 2013
  92. Switzer portfolios outshine in June, 1 July 2013
  93. A wild ride in May, but portfolios continue to outperform, 3 June 2013
  94. Switzer portfolios up by 14.6% and 17.7%, 2 May 2013
  95. Our portfolios march ahead nicely, 4 March 2013
  96. Our higher income stock portfolio for 2013, 7 January 2013
  97. Our high-income portfolio, 19 December 2012
  98. A year on: our high-income portfolio outperforms! 17 December, 2012
  99. Our high-income portfolio continues to perform, 29 October, 2012
  100. Our high-income portfolio is up! Time to rebalance, 3 September 2012
  101. Our high-income portfolio – fourth review, 2 July 2012
  102. Our high-income portfolio – third review, 28 May 2012
  103. Our high-income portfolio – the second review, 12 March 2012
  104. Our high-income portfolio – the first review, 23 January 2012

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.

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