I often like to imagine starting a new portfolio and look at how new capital could be allocated. The following article looks at how AMC could be incorporated into a relatively simple portfolio in an article I have written for my blog. The aim of this portfolio is to be rather pedestrian, in that it won't shoot the lights out, but by the same token it is unlikely many of the companies listed will cause permanent capital loss. The relatively small size of the portfolio has made % positions bigger than I would normally run.
APRIL 29, 2018 BY
SHAREDNEWS
Starting a Portfolio of ASX Listed Securities
Sample Portfolio
The sample portfolio below is a hypothetical scenario, where an individual has inherited or saved $100,000 and wishes to invest this money to obtain adequate risk adjusted returns. The following article and subsequent articles will demonstrate the construction of a simple portfolio of ASX listed securities. This article does not provide personal financial advice.
Portfolio Rules
- Broker costs will be included at standard online broker rates
- Franking credits will be included. Income tax and capital gains tax will be excluded
- All securities purchased will be listed on the ASX and have adequate liquidity
- Prices for purchases and sales will be end of trading day prices unless otherwise stated
The portfolio will gradually allocate all of the initial capital over the next few months, depending on available opportunities. The portfolio can be followed at
www.sharednews.com.au
Four securities will be purchased on the starting date 29/04/2018: AMC, IFL, SCG and WBC. AMC, IFL and WBC have each been discussed on the blog already, and SCG will be discussed at some point in the future. Astute readers will notice that a bulk of the portfolio comes from the out of favour sectors – financials and shopping centre real estate trusts.
Performance will be assessed against the ASX 200 Franking Credit Adjusted Annual Total Return Index (Tax-Exempt). The benchmark can be found here:
https://au.spindices.com/indices/eq...adjusted-annual-total-return-index-tax-exempt
Current benchmark: 1761.88
Sample Portfolio as of 29/04/2018
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
Column 8 |
Column 9 |
Column 10 |
| 1 |
Security |
Code |
Quantity |
Purchase Price |
Current Price |
Purchase Value |
Current Value |
Capital gain/loss |
Broker fees |
Portfolio weight % |
| 2 |
Amcor |
AMC |
582 |
13.73 |
13.73 |
7990.86 |
7990.86 |
0.00 |
19.95 |
8.00 |
| 3 |
IOOF |
IFL |
879 |
9.10 |
9.10 |
7998.90 |
7998.90 |
0.00 |
19.95 |
8.01 |
| 4 |
Scentre |
SCG |
2518 |
3.97 |
3.97 |
9996.46 |
9996.46 |
0.00 |
19.95 |
10.00 |
| 5 |
Westpac |
WBC |
353 |
28.30 |
28.30 |
9989.90 |
9989.90 |
0.00 |
19.95 |
10.00 |
| 6 |
|
|
|
|
|
|
|
|
|
|
| 7 |
|
|
|
|
Total in shares |
35976.12 |
|
|
|
|
| 8 |
|
|
|
|
Cash |
63944.08 |
|
|
|
|
| 9 |
|
|
|
|
Total |
99920.20 |
|
|
|
|
| 10 |
|
|
|
|
Return % |
-0.0798 |
|
|
|
|
Disclosure: Amcor, IOOF Holdings, Scentre Group and Westpac Bank are held in portfolios managed by the author of this article.
(20min delay)