The Australian sharemarket made further gains in December, reaching post GFC highs to record an annual gain of 7.1% or 11.8% when dividends are included. Our growth portfolio finished the year with a return of 11.3%.
Our model portfolios, which have a preponderance of major cap (top 20) stocks, enjoyed positive returns during December and marginally outperformed the benchmark S&P/ASX 200 index. Over 2017, the growth portfolio underperformed by 0.54% and for the income portfolio by 3.17%.
The purpose of these portfolios is to demonstrate an approach to portfolio construction. As the rule sets applied are of critical importance, we provide a quick recap on these.