The Stonehouse Core Value Portfolio (CVP) ended 2017 strongly, returning +0.52% in December and delivering +9.0% for the calendar year. Equities ended the year well with the Australian market returning +1.8% and the MSCI World Index +1.1% (in AUD Hedged terms). The Australian dollar (+3.2%) appreciated strongly in December but Australian bonds were weak (-0.5%).
The majority of CVP Equity investments delivered a solid return in December. Allan Gray (+4.6%) had a spectacular month outperforming the market by 3%. The other strong performers were the regional exposures through iShares MSCI Japan High Dividend ETF (+3.3%), Northcape Emerging Markets (+3.0%) and J O Hambro Asia ex Japan (+1.4%). Old Mutual (+1.6%) and SGH ICE (+2.0%) also continued to provide steady positive returns. Main detractors in the equity sector were Wingate Global Equity Income (-2.0%), Lazard Global Small Caps (-0.7%) and Platinum International (-0.3%).
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