The Stonehouse Core Value Portfolio (CVP) returned +0.55% in June 2018 and +5.91% for the 2017/18 financial year – a pleasing result that exceeded our stated performance objective of cash +3.5%. The primary drivers of performance for the year were domestic and international equity markets, however given our aim to provide investors greater downside protection, the returns generated by the Portfolio were achieved with significantly less volatility.
The domestic component of the Portfolio’s equity investments performed well in June, with Allan Gray (+2.6%) again the strongest performer, closely followed by IML Equity Income (+2.2%) and SGH ICE (+1.2%) continuing as a solid performer. The best international equity components included Wingate Global Income (+4.1%), which had a strong month, followed by Lazard Global Small Caps (+2.1%). Northcape Emerging Markets (+1.7%) significantly outperformed Emerging Market indices, demonstrating the quality of their strategy. Main detractors within equities were Platinum International (-1.8%), Blackrock iShares Japan High Dividend ETF* (-1.8%) and J O Hambro Asia ex Japan (-4.4%).
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