Compound Income Scores Portfolio Performance
The Portfolio just about managed to keep up its record of out performing the FTSE All Share this month, although in all honestly both of them returned little more than nothing.
It does however leave the portfolio with a total return of +21.5% in the year to date which is more than 10% ahead of the FTSE All Share which I use as a benchmark. This and other performance statistics over longer time periods and since inception can be seen in the table above. This is also shown in the graph with comparisons against various Indices.
There were three candidates to be considered for action / sale this month based on where their Scores had moved down to. Two of these have trading updates due in July and one was still flagged as a buy on momentum grounds, so I decided to give them the benefit of the doubt. I also did this with the third candidate as it was a recent addition to the portfolio and despite some post results downgrades it still looks good value and appears oversold while the momentum indicator suggest holding. So after last months splurge of activity in terms of transactions I made this a nothing month on that front as we approach the quieter summer months and the silly season as it is known.
Summary & Conclusion
Sorry not much to summarise as the returns were nothing to write home about and there was nothing to report on the trade front. In conclusion after a nothing month at the end of a robust first half in markets it does leave one wondering if markets might be losing some momentum perhaps? This is especially so as we move toward the traditionally quieter summer months and investors continue to fret about inflation and whether it will be transitory (consensus I think) or more long lasting (potential for a negative surprise).
While strong growth and upgrades are being seen currently and are probably expected to continue, again there is a risk I'd say that these hopes could be dashed if re-opening is disappointing or delayed again or, heaven forbid, the virus should somehow get more troublesome again.
Any way I'll not spend too much time worrying about that this Summer as hopefully we can all get back out there are enjoy ourselves properly assuming all the remaining restrictions are lifted in July as promised. In the meantime an Englishman can dream that after 55 year the England Football team might come back home from a tournament with something rather than nothing this month!