My portfolio - Comments/Opinions

[David Hardman]

Below are the stocks/assets I currently holding in my Super fund.

No dollar values disclosed. Just %.

Most of these assets have been owned for 1+ years. I've out performed the market over the last couple of years.

Assets have been bought on their individual merits (in mosts cases) at the time. I've never really given much thought to the overall portfolio as a whole.

I'd be interested in people comments on the overall structure of the portfolio going into 2014

Do I really need to hold both STO and BPT?
Don't own any of the big four? Who cares?
80% Aussie Equities/20% international the right split? (probably not)



Holding % Sector
BHP Billiton Ltd 11.6% Metals
Invesco W/S Diversified Growth Fund - Class A 9.8% Global Equities
TPG Telecom Limited 6.2% Telco
IShares Core S&P 500 ETF 4.8% Global Equities
Lend Lease Group 4.8% Property
Beach Energy Ltd 4.7% O&G
PanAust Limited 4.7% Metals
Monadelphous Group Ltd 4.6% Mining Services
Santos Limited 4.1% O&G
Capitol Health Limited 3.9% Medical
IShares Core S&P Small-Cap ETF 3.4% Global Equities
United Overseas Australia Ltd 3.3% Property
Rubik Financial Limited 3.3% Tech
Sterihealth Limited 3.1% Medical
QBE Insurance Group Ltd 3.0% Insurance
Hansen Technologies Ltd 2.9% Tech
Vanguard Australian Property Securities Index Fund 2.6% Property
Computershare Ltd 2.6% Tech
Nearmap Ltd 2.2% Tech
Mincor Resources NL 1.9% Metals
IShares China Large-Cap ETF 1.9% Global Equities
iiNet Limited 1.8% Telco
The Reject Shop Limited 1.6% Retail
Colorpak Limited 1.5% Consumer Cyclical
Cash 1.4% Cash
Dart Energy Limited 1.4% O&G
Corum Group Ltd 1.2% IT
Macquarie Group Ltd 1.2% Banks
Atlas Iron Limited 1.1% Metals
New Guinea Energy Limited 0.3% O&G
Mothercare Australia Limited 0.2% Retail
OZ Minerals Ltd 0.2% Metals
Sydney Airports Stapled Securites 0.1% Transport
Blackwood Corporation Limited 0.1% Metals
Geodynamics Ltd 0.0% Utilities

[percy]

Looks a very good spread to me. No wonder you have done very well.
I personally would look to sell BPT to add to your Sydney Airport.

[OldRider]

Hi David,
You haven't attracted much comment, so will add my pennyworth. I would be reasonably comfortable with the spread in your portfolio.
I am surprised at the similarities between yours and my own. I hold 20% international, rest 45% NZ, 35% Aust, I am presuming you are Australian to account for that, my NZ portion is higher as it contains a disproportionate amount of property companies to produce a
regular stream of income. Interestingly own UOS as well. Recently I have been selling down individual ASX companies and placing the funds
into LIC'S. Is simpler as I grow older and as I pass management to two of my children.

I hold more companies than you do restricting any holding to a maximum of 5% of assets, though I am allowing higher than 5% limit for a LIC. I have Ishares similar to yours plus use some British Investment trusts - Polar Technology and Worldwide Healthcare. Don't use unlisted Unit trusts any more as I don't like the problems associated with them, usually higher costs and the fact they can usually suspend repayments in difficult times.

Thanks for posting, your post has been of real interest to me and offered some confirmation I am not too far off the rails,I hope my comments are useful

[Huang Chung]

I really enjoy seeing how people construct their portfolios.

Looks like a very nice spread, but struggle to see the worth of holding stocks if they constitute less than 1% of a portfolio....exception being if you are fishing for an entitlement to acquire shares in a possible capital raising (hold a few shares just to be eligible).

Anyhow, good luck with the portfolio.

[Lizard]

Is 1.4% really all the cash you have or is that just within a ring-fenced investment account?

Personally, I think the most critical choice an investor can make is the % allocated to cash and that has to be strongly determined by the relative size of the investment portfolio to the % cash that investor expects to be adding or drawing down over the coming years - i.e. individual ideals can vary considerably! I'd probably also adjust for investment experience, the amount of time an investor intends to spend monitoring investments each week and their personal reaction to volatility. For those who doubt their market timing ability (me!), re-balancing between cash and shares periodically is a good substitute.

I like the spread of your investments, although I'm a bit of a re-balancing fan and would tend to eventually either sell the shares at top and bottom % holdings or adjust the holding size to be within a tighter range - i.e. with 35 holdings, that's an average of 3% per holding and consequently I'd probably try to re-balance most holdings to within the 1.5 - 4.5% range at least once a year.

Re Old Rider's comments, it is interesting to hear how he is managing the transition to not managing his own funds. It would be good to know how that works. I get asked for investment advice from a lot of people who want to know where to put money and who want it to be simple, no risk and without requiring them to learn anything. I end up suggesting term deposit... but toy with the idea of writing a simple set of guidelines for a kind of minimalist investing style. Unfortunately, each time I start, it ends up so complicated that I throw it away again! :D

[Harvey Specter]

but struggle to see the worth of holding stocks if they constitute less than 1% of a portfolio...Agree - would be interested to know why you hold the 6 shares under 1%.

Or is it just that they aren't worth selling?

[David Hardman]

Agree - would be interested to know why you hold the 6 shares under 1%.

Or is it just that they aren't worth selling?

Thanks for the feedback guys.

Most the the sub 1% holdings have been assets that I've owned for many years and tanked. They were bigger positions once! I've just not bothered to sell them preferring to keep them in the bottom draw and avoid facing up to my bad decisions.

My superfund is not a true SMSF. My trustee puts certain restrictions on the fund. Only 30% of assets can be outside the ASX200, no one non ASX200 equity asset greater than 5%, no ASX200 asset greater than 20%. This obviously limits some investment decisions but they are reasonable...They don't force you to rebalance to keep within these limits either.

UOS has been a good investment for me. A quiet achiever.

Cash balance is just what what's available in my Super fund. Recently purchased ColorPak the other day drawing down on the balance. Regular contribution will see the balance cash increase..

Thinking about getting some direct exposure to Europe/UK.

The Pound ETF looks like a good instrument (Code ASX:POU)

[Stranger_Danger]

Agree - would be interested to know why you hold the 6 shares under 1%.

Or is it just that they aren't worth selling?

There is definitely a place for a 1% (at cost) allocation.

I currently hold 6 positions that fell into this category.

3 lost over 70%, the other three returned between 600-2000%.

And before anyone talks about stop loss, we're talking illiquid, risky, all or nothing positions.

That is when 1% is appropriate.