Core Model Share Portfolio

Highlights

  • A model portfolio of high quality, large cap stocks, with low turnover
  • Share selection based on "Quality-at-a-reasonable-price" methodology
  • Long term out-performance of the ASX 200 Index
5 Yr Performance graph

What is it?

The Core Model Share Portfolio is our portfolio for SMSF investors that wish to invest in high quality, larger cap stocks listed on the ASX. It has an enviable track record of long term performance, with a solid gross income yield.

Portfolio Objective

To deliver strong returns over the medium to long term, by investing in a concentrated portfolio of quality Australian companies. Suitable for investors seeking capital growth, and a solid dividend yield, over a holding period of at least three years.

Portfolio strategy

Lonsec believes that higher quality companies will outperform lower quality companies over time.

Lonsec also believes that markets tend to be inefficient over the short term, leading to such higher quality companies trading at a discount to their intrinsic valuation from time-to-time. Lonsec considers that a detailed ‘bottomup’ investment process implemented by an experienced investment team can exploit such opportunities as they occur to add alpha over a market cycle.

Combined, this focus on quality and value forms the back-bone of Lonsec’s ‘Quality-at-a-Reasonable-Price’ or QARP investment style.

Total Return1yr%3yr %pa5yr %pa7yr %pa
Core Model26.0312.0611.709.59
vs ASX200 Acc Index28.569.4810.058.29
As at 31/07/2021
Past performance is not a reliable indicator of future performance. Performance does not include franking credits, or other taxes or possible transaction costs . Performance is notional in nature and the actual performance of individual portfolios may differ to the performance of the Model.
PORTFOLIO STYLE AND CONSTRUCTION RULES
INVESTMENT PHILOPSOPHY QUALITY COMPANIES AT A REASONABLE PRICE, HIGH CONVICTION, LOW TURNOVER
INVESTMENT UNIVERSEASX 200 STOCKS
BENCHMARKS&P/ASX 200 ACCUMULATION INDEX
INCEPTION DATE APRIL 2000
TYPICAL NO. OF STOCKS 15-25
MINIMUM/MAXIMUM STOCK TARGET WEIGHT2.5%/15.0%
STOCK LIMITSTOCK WEIGHT +10.0%
SECTOR LIMITGICS SECTOR WEIGHT +20.0%
NON-INDEX LIMIT10%
CASH LIMIT10%
TYPICAL TURNOVER20-30% (3-5 CHANGES PER ANUUM)

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