Trade fears put pressure on portfolios

Co-founder of the Switzer Super Report
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Weighed down by fears of trade war and the opening of the Banking Royal Commission, the Australian sharemarket had a pretty poor run in March, with all sectors finishing in the red. It lost 3.8% in the month (after adding back dividends) in the month to be down by 3.9% in 2018.

Our model portfolios, which are weighted towards the major stocks, suffered falls of around 4.4%. The income portfolio now lags the index by 0.9%, while the growth portfolio has underperformed by 0.2%.

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