Since our last review at the beginning of September, our ‘income biased’ portfolio of shares has continued to perform, bringing home a return of a return of 15.77%!
As expected, in a rising market, it has given back a touch of its outperformance. In this period, we have seen a rebound in ‘materials’ as commodity prices recovered, continued enthusiasm for banks and Telstra, and a reasonably lacklustre performance in most other sectors.
It's worth restating our expectation that this portfolio should moderately underperform in a rising market, and moderately outperform in a falling market. After all, we have constructed it for tax-effective income and are underweight the typical ‘growth’ sectors.