Our model Australian equity portfolio returned 20.35% over the year ending 30 June 2014, which was above the ASX 200 Accumulation Index return of 17.43%.
Strong contributions from Seek Limited (+80%), Sydney Airport (+32%), Ramsay Healthcare (+30%), Crown Resorts (+29%), Woodside (+27%), and Commonwealth Bank (+26%) more than offset disappointing outcomes from Coca Cola Amatil (-18%; 25% sold on 31 December 2013) and QBE Insurance (-25%).
On 31 December 2013 we traded 25% of Coca Cola Amatil for Dulux Group. Since 30 June 2014, we have exited Coca Cola Amatil (unclear whether the decline in demand for core soft drink products can be offset by new product offerings) and QBE Insurance (we expect a recovery but still believe better long term prospects lie elsewhere). We have introduced ASX Limited (low growth but attractive yield relative to risk), NIB Holdings (well managed private health insurer that could benefit from industry consolidation) and Slater & Gordon (strong growth profile, albeit higher risk). The historical return profile is shown below.
Model Equity Portfolio - Historical Return Summary
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