Our portfolios gain as reporting season pushes market higher

Co-founder of the Switzer Report
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On the back of a company-reporting season that largely met expectations, the Australian share market added 1.4% in August, as it pushed towards 10-year highs. Smaller and mid-cap companies did relatively better than large-cap companies, and one of the laggard sectors this year, telecommunications, was the best performing sector in the month.

Our model portfolios recorded gains of around 1% to 2% in August. Year-to-date, our model income portfolio, which is overweight financials and telecommunications, has underperformed the index by 4.1%, while our model growth portfolio has outperformed the index by 0.9%.

In our eighth review for the year, we look at how our income and growth portfolios performed in August. 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.

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