australian shares income managed account portfolio q42019 · australian shares income managed...
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Q42019All data and information as at Portfolio Date: 31/12/2019
Australian Shares IncomeManaged Account PortfolioQuarterly Performance Update
Investment Growth of $10,000
Time Period: 1/08/2001 to 31/12/2019
2004 2007 2010 2013 2016 2019-10,000.0
10,000.0
30,000.0
50,000.0
70,000.0
Portfolio S&P/ASX 200 TR AUD
Returns Relative to Benchmark
As of Date: 31/12/2019
1 month 3 month 1 year 3 years p.a
5 years p.a
Since Incp % p.a
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
-2.2
1.0
16.9
5.3 5.6
10.1
-2.2
0.7
23.4
10.3 9.0 8.5
Portfolio S&P/ASX 200 TR AUD
Retu
rn
Past performance is not a reliable indicator of future performance.Returns over 12 months are annualised.
Top Holdings
Weighting %
Cash Account
Link Administration Holdings Ltd
Pendal Group Ltd
Commonwealth Bank of Australia
Crown Resorts Ltd
Telstra Corp Ltd
Computershare Ltd
AGL Energy Ltd
Sonic Healthcare Ltd
Vicinity Centres
5.6
4.9
4.7
4.5
4.4
4.4
4.3
4.2
4.2
4.2
At a Glance
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Expectations of ‘lower for longer’ interest rates, both domestically and abroad has resulted in an exceptional period for share markets, including Australia.
Understandably, investors are feeling confident, but we must be mindful of behavioural biases that may lead others to look beyond the increasing risk of loss in key markets.
Shares rallied in late 2019 to cement a strong year of gains across major equity markets around the world, including Australia. Looking back over one of the stronger years on record, the common catalyst was the influence of central banks, whose support came in response to sluggish growth (both economically and in terms of corporate profitability). That said, counter to earlier signals, the global economy proved more resilient than many expected as the year wound to a close. This coupled with trade fears subsiding and greater clarity regarding a potential Brexit outcome (following Boris Johnson’s convincing victory in the U.K. election), sent shares to record highs in many parts of the world.
We should not underestimate the significance of the 2019 rally—with both shares and bonds rising quite substantially, fuelling strong portfolio returns. Upon reflection, however, it only seems right to call 2019 the year of contrast. On the one hand, it was a great year for investors. Double-digit returns in share markets will usually put a smile on most faces. But on the other, we’ve endured one of the more unpredictable periods in history, with low interest rates, heightened geopolitical uncertainty and stretching asset prices dominating question time. Indeed, these returns have been achieved with very little regard for risk.
Regardless of how we got here, it is hard to look past the evidence linking expensive valuations to lower future returns. As such, we must be mindful of behavioural biases that paint these recent returns as reasonable and sustainable expectations for the future. With this in mind, we continue to focus on delivering the maximum amount of return, for a given level of risk, as opposed to just generating returns without regard for the risk taken in achieving them. Ultimately, our process looks to identify unloved assets that we think will help deliver investor outcomes over the longer term.
As of 31/12/2019
Average Relative Weights over the Quarter
Software and Services
Health Care Equipment and Services
Diversified Financials
Consumer Services
Utilities
Energy
Telecommunication Services
Media & Entertainment
Real Estate
Commercial Services and Supplies
Insurance
Capital Goods
Retailing
Household and Personal Products
Consumer Durables and Apparel
Automobiles and Components
Food, Beverage and Tobacco
Food and Staples Retailing
Transportation
Banks
Pharmaceuticals and Biotechnology
Materials
-20.0 -10.0 0.0 10.0
6.6
6.1
4.5
4.2
2.2
1.8
1.7
1.6
1.1
1.0
0.9
0.5
0.3
-0.1
-0.1
-0.1
-0.6
-3.9
-4.4
-6.6
-6.6
-15.5
Transactions in the Quarter
ANZAPIBXBCCLCIMCTXPDLRHCSGPSYDWHC
Australia & NZ Banking Group LtdAustralian Pharmaceutical Industries LtdBrambles LimitedCoca-Cola Amatil LtdCIMIC Group LtdCaltex Australia LtdPendal Group LimitedRamsay Health Care LimitedStocklandSydney AirportWhitehaven Coal Limited
IncreasedRemovedIncreasedDecreasedAddedIncreasedIncreasedDecreasedRemovedRemovedAdded
Equity Region Exposure
Portfolio Date: 31/12/2019
%Australia 100.0Total 100.0
Equity Sectors (GICS)
Portfolio Date: 31/12/2019%
Financials 32.0Consumer Discretionary 10.8Information Technology 9.8Healthcare 9.0Energy 8.8Real Estate 8.3Communication Services 7.4Industrials 6.2Utilities 4.5Materials 2.2Consumer Staples 1.1Total 100.0
Asset Allocation
Portfolio Date: 31/12/2019
%
Stock 94.4
Cash 5.6
Total 100.0
As of 31/12/2019
Risk-Reward
Time Period: Since Common Inception (1/08/2001) to 31/12/2019
Std Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Portfolio Australia Fund Equity Australia Large Blend
Retu
rn
Sector Exposure
Portfolio Date: 31/12/2019
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Information Technology
Materials
Real Estate
Telecom Services
Utilities
Portfolio S&P/ASX 200 TR AUD
Risk
Time Period: Since Inception to 31/12/2019
Inv Bmk1
Return % pa
Std Dev
Max Drawdown
10.13
11.12
-46.34
8.46
12.38
-47.18
Market Performance
Time Period: Since Inception to 31/12/2019
Inv Bmk1
Up Period Percent
Down Period Percent
Best Month
Worst Month
Best Quarter
Worst Quarter
62.90
37.10
8.47
-11.51
17.12
-15.78
62.90
37.10
7.98
-12.61
21.50
-18.25
Complete List of Holdings
Portfolio Date: 31/12/2019
Franking (%) (est): 65.7% | Div Yield (%): 4.5% CodeStyle
Box
TotalRet 3Mo
(Qtr-End)
PortfolioWeight
%
Cash AccountLink Administration Holdings LtdPendal Group LtdCommonwealth Bank of AustraliaCrown Resorts LtdTelstra Corp LtdComputershare LtdAGL Energy LtdSonic Healthcare LtdVicinity CentresBrambles LtdCaltex Australia LtdNational Australia Bank LtdScentre GroupAustralia and New Zealand Banking Group LtdWestpac Banking CorpPlatinum Asset Management LtdBapcor LtdAnsell LtdWoodside Petroleum LtdPerpetual LtdMedibank Private LtdCarsales.com LtdInvoCare LtdMineral Resources LtdCIMIC Group LtdQBE Insurance Group LtdWhitehaven Coal LtdCoca-Cola Amatil LtdRamsay Health Care Ltd
5.634LNK Ì 4.898PDL Ê 4.689CBA Ç 4.462CWN Ê 4.393TLS È 4.390CPU Ì 4.338AGL È 4.207SHL É 4.188VCX Ê 4.164BXB É 3.885CTX Ë 3.882NAB Ç 3.665SCG È 3.637ANZ Ç 3.513WBC Ç 3.402PTM Ê 3.360BAP Ï 3.285ANN Ë 3.232WPL È 2.886PPT Í 2.637MPL Ë 2.602CAR Ì 2.600IVC Î 2.534MIN Ë 2.038CIM Ç 1.945QBE È 1.895WHC Ë 1.529CCL Ê 1.081RHC É 1.030
19.621
7.150
0.2352.807
3.9010.855-0.332-1.151
2.496
28.989
6.604
-14.276
4.298
5.910
-15.553-10.835
-0.117
-2.545
-7.059
-13.043
2.548
8.633
9.829
5.374
-15.113
6.177
23.318-4.903
3.85011.808
As of 31/12/2019
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