View how market volatility has affected the instalments portfolio against the share portfolio.
For those who follow the portfolio study regularly, view the portfolio study.
Commentary
Instalments and share portfolios rise in value
During the month of June the broader ASX 200 index declined by 3.36% however both our share and instalment portfolios have increased in value. The increase in both portfolios has been due to the increase in the values of CBA and WOW over the period. Our share portfolio has rallied to over $507,000. This represents a return of 3.64% since inception. Our instalment portfolio has closed off the month 8.05% higher. This represents a return of negative7.28% since inception in July 2006.
Income from instalments outweighing market falls
The only income derived from our portfolios during the month of June was on our instalment portfolio our share portfolio has remained the same. By diversifying our portfolio using instalments we have gained exposure to the two ETFs (STW and SLF). During the month of June SLF has paid a dividend of 28c. Therefore overall the income generated from our instalment portfolio is more than double our share portfolio and stands at $157,052.72 as opposed to $73,226.87 from our share portfolio. Distributions will be paid again by our ETF (STW) in July.
Instalments - Learn more
Instalments provide investors with an alternative means of gaining exposure to ASX listed companies and funds without the threat of margin calls. If you like to know more feel free to register your interest for instalment events in July visit www.asx.com.au/warrants
Portfolio growth
Portfolio of four shares (CBA, WOW, TLS and IAG)
| Value 03.07.2006 |
Value 30.06.2009 |
Change in value |
| $489,262 |
$507,093 |
3.64% |
Portfolio of six instalments (CBASMX, WOWSZB, TLSSWB, IAGSMX, STWSZB and SLFSZB)
| Value 03.07.2006 |
Value 30.06.2009 |
Change in value |
| $489,267 |
$453,661 |
-7.28% |
Portfolio income (since inception - 03/07/2008)
Portfolio of four shares (CBA, WOW, TLS and IAG)
| Value 31.05.2009 |
Income to 31.05.2009 |
| $477,889 |
$73,226 |
Portfolio of six instalments (CBASMX, WOWSZB, TLSSWB, IAGSMX, STWSZB and SLFSZB)
| Value 31.05.2009 |
Income to 31.05.2009 |
| $414,286 |
$157,052 |
Note: Income for the instalment portfolio is gross and has not been netted against interest costs associated with the loan components of the instalments portfolio.
Valuation prices have been used for our portfolio of instalments. These valuation prices may be skewed by the current market conditions and market making of our warrant issuers.
More information
Register your interest for ASX events in 2009.
