Compound Income
  • Blog
  • Scores
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact



Compound Income Portfolios update.

6/4/2016

0 Comments

 
The Compound Income Scores portfolio had a poor month in March as it took a few big hits on some stocks with the gainers being insufficient to offset this. As a result the portfolio finished the month down by 0.76% which compared to the FTSE All Share which was up by 1.94%, both in total return terms. The other factor in this was the sharp recovery in the more commodity related sectors during March where the portfolio still has no exposure having previously benefited from this positioning.

This is reflected in the roughly twelve month returns (3/04/15 - 31/03/16) since inception, with the portfolio producing a total return of 10.5% which compares with -4.8% from the FTSE All Share on the same basis for an outperformance of 15.3% since inception. Those of you with good memories may recall that I also did an annually re-balanced version of the original portfolio in addition to the quarterly re-balanced version discussed above. This had lagged the quarterly version during the year but made this up in the last quarter to end with a very slightly higher return of around 10.7%. I guess this may not be that surprising as they shared quite a few stock positions and I only changed about a third of the holdings along the way in the quarterly version. It does however make me wonder though if all the bother of re-screening quarterly was actually worth it?

Having said that I also feel that perhaps the quarterly screening was missing some alpha signals from the scores along the way and perhaps these could be better captured with a monthly re-balancing schedule, although this may well incur extra costs which could offset some or all of the benefit. So for this year I'm going to try monthly screening and allow changes where news flow dictates and compare it again with a re-balanced selection which is left unchanged with a year of masterly inactivity. To help on the cost front I've assumed another years contributions so as to reduce the impact of commissions to 0.2% on the increased unit size, although the cost of smaller top ups to most of the other existing holdings will cost more like 0.5%. Originally the Scores portfolio was designed to compare how it performed against my own selections in my Man versus Machine post and to provide a portfolio for the site. By way of summary this was to test the theory that computer models or algorithms can be more effective in selecting stocks as they are not subject to human biases and will tend to buy unpalatable stocks which then go onto perform.

So it is now that time of year when I update the performance of my main portfolio on the site too, so how did I do against the machine and the Scores portfolio? My portfolio had a strong calender year performance of around +15% total return, but it did underperform the CIS portfolio in the 9 months to the end of 2015. I also had a poor first quarter and dropped of a strong Q1 from 2015 so my portfolio continued to trail the CIS and was actually down by 2.5% for the year although this was still slightly ahead of the -3.9% produced by the FTSE All Share Index for another year of outperformance of 1.4% this year. That makes it seven years of outperformance in a row now, but as this is the first year I have lost money in absolute terms I guess it could be a portend of things to come as no process can outperform every year and perhaps my type of income growth stocks have been bid up to such an extent that they may underperform more generally from here if they get de-rated. As ever I guess time will tell but given the tricky and volatile market it would not surprise me if I do underperform as some point and it still feels like returns will be hard to come by this year.

To try and counter that going forward I will be trying to follow and investigate the more unpalatable stocks coming out of the Scores more fully and try to implement my own portfolio more effectively this year. Please note however, that I will only be providing updates on the Compound Income Scores portfolio to subscribers, so this will be my final update on this here, although I might see if I can put a performance table up on the site in due course for the record. So if you are interested in following it yourself and gaining access to the Compound Income Scores and the attractive income stock ideas they can provide, then please get in touch via the contact page for details of how you can subscribe.

Right that's it for now as I going to finish my Easter break with a long weekend in Paris, back next week - au revoir.
0 Comments



Leave a Reply.

    RSS Feed

    Google+

    Archives

    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    32Red
    Aberdeen Am
    Admin
    A G Barr
    Alliance Pharma
    Alternative Telecoms
    AMEC
    Amino Technologies
    Amlin
    Anglo Pacific
    Asset Allocation
    Auto Trader Group
    BA Systems
    BATS
    Behavioural Finance
    Bellway
    Berendsen
    BHP Billiton
    Bloomsbury Publishing
    Bodycote
    Books
    Bovis Homes
    BREXIT
    Britvic
    Catlin-group
    Central Asia Metals
    Centrica
    Character Group
    Churchill China
    Cineworld
    City Of London Investment Group
    Clarkson
    Commercial Property
    Compound
    Computacenter
    Connect Group
    Croda
    Currencies
    Demographics
    Diageo
    Diploma
    Directors Dealings
    Dividends
    Easyjet
    Economics
    Emerging Markets
    Emis
    Empiric Student Property
    Etfs
    Fairpoint
    Ferguson
    Ferrexpo
    Finsbury Foods
    Food Retailers
    Forterra
    Games Workshop
    Gateley
    Go Compare
    Goid
    Greene King
    GSK
    Hargreaves Services
    Hays
    Headlam
    Hedge Funds
    Hill & Smith
    House Builders
    Howden
    HSBC
    IG Group
    Imperial Tobacco
    Indivor
    Inflation
    Insurance
    Intermediate Capital
    Interserve
    Investec
    Investment Trusts
    It
    ITV
    James Halstead
    Jarvis Investment Management
    JLT
    Jupiter Fund Management
    KCOM
    Kingfisher
    Legal & General
    Lloyds Bank
    Maintel
    Man Group
    Market Timing Indicator
    Market Valuation
    Marston's
    Matchtec
    Media
    Merlin Entertainment
    Micro Focus
    Mining
    Mitie
    Miton Group
    Moenysupermarket
    Mondi
    Moneysupermaket.com
    Music
    National Grid
    N.Brown
    News
    Next
    Nichols
    Norcros
    Oil
    Page Group
    Paypoint
    Pennon
    Persimmon
    Personal Finance
    Pharmaceuticals
    Phoenix Group
    Photo Me
    Photo-Me
    Plus500
    Podcasts
    Polar Capital
    Politics
    Portfolio
    Portmeirion
    Provident Financial
    PZC
    Qinetiq
    Ramsdens Holdings
    Rank Group
    Reckitt Benckiser
    Renewable Energy
    Renew Holdings
    Renishaw
    Research Papers
    Restaurant Group
    Retailers
    RIO
    RM Group
    Rolls Royce
    RPC
    RPS
    Safestore
    Sainsburys
    Savills
    Schroders
    Scores
    SCS Group
    Sell Discipline
    Shareholder Yield
    Share Picks
    Short Interest
    Somero
    Spectris
    Sprue Aegis
    SSE
    Stock Spirits
    S & U Plc
    TalkTalk
    Taptica
    Tax
    Technology
    Telecoms
    Tobacco
    Trading Ideas
    TSB
    TUI
    UK Market Update
    Unilever
    Utilitywise
    Value
    Victrex
    Vodafone
    VP.
    Water Utilities
    WH Smiths
    William Hill
    Wynstay
    XL Media
    XP Power
    Yield
    Zytronic

    googleda4a17cac6d02bb9.html
    File Size: 0 kb
    File Type: html
    Download File

Powered by Create your own unique website with customizable templates.
  • Blog
  • Scores
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact