Summer is over as we roll into September and the weather certainly seems to think so too. Any way the normally quiet August passed off in its usual fashion with low volumes and only a modest positive return of 0.77% for the FTSE All Share Index. The Compound income Scores (CIS) portfolio continued its strong run of outperformance in August with a total return of 1.25%.
For the year to date this makes 7 out of 8 months so far in which it has outperformed the broader FTSE All share index and leaves it with a total return of 25.71% year to date & 52.18% or 19.81% annualised since inception at the end of March 2015. You can see a full table of the performance history by clicking here if that is of interest to you. There is also a chart of the portfolio performance against the other FTSE UK indices such as the Mid 250 and Small Cap available on the website and this is reproduced at the top of this post. The only thing missing from this chart, which is worth pointing out, is that I don't have data for the total return of the All AIM index which as shown in the following chart has been the best performing UK index this year.
Now this is worth bearing in mind as the CIS Portfolio currently has 40% in AIM stocks and is also skewed towards Mid 250 Stocks & Small Caps with 35% and 12% respectively and only has 12% in FTSE 100 Stocks which have brought up the rear this year. So this has been beneficial to the portfolio and will help to explain a large part of the outperformance this year, although obviously selecting the right stocks within in that, thanks to the Compound Income Scores, will also have been necessary. No doubt if we see a return to FTSE 100 stocks leading the way then some of the recent performance could reverse.
With that background I wanted to highlight to readers the broader benefits of the Scores as they are not just for dull income stocks but cover the breadth of the market with over 600 stocks drawn from FTSE 100 down to small caps and 200 under researched AIM stocks too. Now you may not be that interested in income stocks in particular, but it is worth bearing in mind that given the focus of the Scores on quality and growth metrics as well as yield, value and financial security, they can and do also flag up attractive quality growth stocks such as ARM before it was taken over and more recently the likes of Fevertree. These do however tend to be on expensive looking valuations, which given my value bias and limits, tends to mean that they get excluded from the CIS Portfolio. If you are that way inclined or more willing to tolerate highly rated quality growth stocks for capital compounding then the Scores can also help you to identify these type of stocks too, although they do exclude those that do not pay a dividend so you would have to look elsewhere for guidance on those. Hmm, makes me think perhaps we should launch an unconstrained Scores portfolio.
The other feature of the Scores is that hitherto they have up to now only been delivered via Google Drive. We understand that not everybody has or wants one of these or even know how to use it and it may therefore not be their cup of tea. So talking of tea - for around the cost of a cup of tea each week (£1) we would like to offer access to more people on a more user friendly basis. Therefore we are delighted to be able to announce that henceforth the Scores will now available via the following services:
So if the Google Drive access has put you off in the past and you would like to gain access to the Scores by subscribing in one of the other ways, or indeed via Google Drive if you are a new reader who uses that, then please click on your preferred method of receiving the Scores listed above to be taken to our payment partner to subscribe.
When you subscribe you'll be provided with a free e-book explaining the background to the Scores.