Friday, 8 May 2020

April portfolio update

Hello again from isolation. It's time for another portfolio update. In April, my portfolio gained 7.82%, which slightly trailed the 8.78% gain posted by my benchmark, the S&P/ASX 200 Franking Credit Adjusted Annual Total Return Index (Tax-Exempt).

The performance of my portfolio and the benchmark (SPAX2F0) are summarised in the table below. I have unitised the portfolio to assist in calculating performance. 

Please note that my returns are pre-tax, include franking credits, and assume dividends are reinvested. These figures have not been audited. Additionally, I do not account for cash in the portfolio. The net result is that my performance is likely somewhat overstated, although I endeavour to be fully invested. The SPAX2F0 is simply the total return of the S&P ASX200 Accumulation Index adjusted to include any franking credits received. 


August 3, 2017
April 30, 2020
Since July 1, 2019
Since Inception
Annualised
G&W Portfolio
1.0000
1.5074
5.91%
50.74%
16.14%
Benchmark (SPAX2F0)
61,250.80
68,355.71
-12.46%
11.60%
4.08%


As I wrote in my last update, I have had a fair bit of luck with my positioning leadning into the pandemic. I have not had to make any dramatic changes, and my major positions have held up relatively well. 

This month, a large part of the gain was down to Naked Wines (LSE:WINE). In April, the stock appreciated 45.6% as online wine sales surged

Naked Wines has a differentiated business model where customers pay a monthly subscription fee to become "Angels". These monthly fees are then used to fund production from winemakers around the world. Because of the subscription nature of the business, Naked should be able to realise longer lasting benefits compared to other online wine retailers. 

There were some gains in other positions, most notably Boustead Projects, which gained nearly 19% for the month. I also bought shares in a structural steel business in Asia that trades at a discount to its net current asset value. I won't reveal the name as yet, because I may buy some more shares. 

However, despite the problems posed by the virus, there does not seem to be a great deal of bargains around in the stock market.

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