The G&W portfolio declined 1.37% in December, while the benchmark declined 0.12%.
*Returns are pre-tax, include franking credits, and assume dividends are reinvested. The SPAX2F0 is simply the total return of the S&P ASX200 Index adjusted to include any franking credits received. N.B. I do not account for cash in the portfolio. The net result so far is that my returns are likely somewhat overstated.
The wider market declined for a fourth consecutive month in December. Since the end of August, the benchmark has fallen 9.4% while the G&W portfolio has gained approximately 9.65%. While I am satisfied with the way the portfolio has performed in the recent market ructions, I do not place any real importance on short term results. The portfolio's success will only be apparent over a period of years (five being the minimum). Over such a period, I expect the benchmark will prove to be a formidable opponent — and one that will better most stock pickers.
During the month, the Mitula transaction was approved by a meeting of shareholders. I elected for the cash consideration, which I will receive in January. While the scrip consideration was superior on face value, it entailed exposure to movements in Lifull's share price and the Yen. When transaction costs were factored in, I decided the extra risk was not worth the price of the premium. As it stands, the value of the scrip consideration is about 0.7% higher than the cash consideration (although this does not take into account any transaction costs).
I purchased additional shares in OneMarket (OMN) this month as they continued their decline. I also purchased additional shares in the portfolio's second largest holding, which is currently undisclosed. Additionally, I have been investigating a number of apparently undervalued securities that have been affected, amongst other things, by the broader market's recent decline. When the consideration for my Mitula shares is paid, I'm confident there will be opportunities to redeploy capital into such situations.
Finally, to any readers, Merry Christmas and a Happy New Year! I've had a fulfilling and enjoyable break — I hope you have, too.
August 3, 2017
|
December 31, 2018
|
Since July 1, 2018
|
Since Inception
|
Annualised
| |
G&W Portfolio*
|
1.0000
|
1.1756
|
10.47%
|
17.56%
|
12.15%
|
Benchmark (SPAX2F0)
|
61,250.80
|
65,216.81
|
-5.56%
|
6.48%
|
4.55%
|
*Returns are pre-tax, include franking credits, and assume dividends are reinvested. The SPAX2F0 is simply the total return of the S&P ASX200 Index adjusted to include any franking credits received. N.B. I do not account for cash in the portfolio. The net result so far is that my returns are likely somewhat overstated.
The wider market declined for a fourth consecutive month in December. Since the end of August, the benchmark has fallen 9.4% while the G&W portfolio has gained approximately 9.65%. While I am satisfied with the way the portfolio has performed in the recent market ructions, I do not place any real importance on short term results. The portfolio's success will only be apparent over a period of years (five being the minimum). Over such a period, I expect the benchmark will prove to be a formidable opponent — and one that will better most stock pickers.
During the month, the Mitula transaction was approved by a meeting of shareholders. I elected for the cash consideration, which I will receive in January. While the scrip consideration was superior on face value, it entailed exposure to movements in Lifull's share price and the Yen. When transaction costs were factored in, I decided the extra risk was not worth the price of the premium. As it stands, the value of the scrip consideration is about 0.7% higher than the cash consideration (although this does not take into account any transaction costs).
I purchased additional shares in OneMarket (OMN) this month as they continued their decline. I also purchased additional shares in the portfolio's second largest holding, which is currently undisclosed. Additionally, I have been investigating a number of apparently undervalued securities that have been affected, amongst other things, by the broader market's recent decline. When the consideration for my Mitula shares is paid, I'm confident there will be opportunities to redeploy capital into such situations.
Finally, to any readers, Merry Christmas and a Happy New Year! I've had a fulfilling and enjoyable break — I hope you have, too.
