InvestorWeb rejigs model portfolios
InvestorWebResearch has shut down its resources sector model portfolio fund and overhauled a series of other model portfolios after a review of the funds by the group’s equities research team earlier this month.
InvestorWeb Research senior investment analyst Sam Bedi says the resources portfolio, which was the only one of the group’s six model portfolios to under perform its benchmark since inception in September 2000, was abandoned because it did not prove a viable investment option for investors.
Changes have also been made to InvestorWeb’s Value Portfolio, Growth Portfolio, Small Companies Portfolio, 100 Leaders Portfolio and Income Portfolio.
The portfolios were set up in September 2000, and valued at $100,000. That value has increased due to the outperformance of the funds and now the portfolios have been re-weighted back to $100,000 as a result of the review.
Bedi says each portfolio will have stocks from across four different Australian Stock Exchange sectors, with a minimum of 10 and maximum of 15 stocks.
A formal quarterly review process has also been introduced, at which time changes and re-weightings can be made to stock holdings to rebalance each of the portfolios.
“The model portfolios have a medium term outlook of 12 months, but given that changes occur in the market, this gives us the opportunity each quarter to make changes,” Bedi says.
“Previously, reviews were probably done every three months on more of an ad hoc basis. The quarterly reviews will bring us more in line with the way the industry operates.”
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