Th
Download
1 / 18

Portfolio construction: - PowerPoint PPT Presentation


  • 100 Views
  • Uploaded on

Th o rnt o n Gr o up. Portfolio construction:. Key concepts. Duncan Wiech. Director Thornton Group (Australia) Pty Ltd 20 October 2010. Th o rnt o n Gr o up. Disclaimer.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Portfolio construction:' - kaipo


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Thornton Group

Portfolio construction:

Key concepts

Duncan Wiech

Director

Thornton Group (Australia) Pty Ltd

20 October 2010


Thornton Group

Disclaimer

This information has been prepared by Thornton Group (Australia) Pty Limited (ABN 88 101 789 226) 60 Greenhill Road, Wayville, South Australia 5034.

This presentation contains general information only. This presentation was produced for informative purposes only without assuming a duty of care. It does not constitute financial advice and should not be relied upon as a substitute for financial or professional advice.

This presentation does not take into account your particular objectives, needs or full financial situation. Before making a decision relating to this presentation you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. No responsibility is taken for anyone acting on the information provided and anyone doing so, does so at their own risk.

No part of this presentation should be used elsewhere without prior consent from the author. Should you wish to obtain personal advice regarding anything in this presentation please contact Anthony Prior on 8561 2400.

The information in this presentation is based on our interpretation of relevant laws as at the date of this presentation and is subject to change.

2


Thornton Group

Portfolio construction

1

one

one

RULE:

Understand what you’re trying to achieve - not all portfolios are the same


Thornton Group

Portfolio construction

2

two

two

RULE:

Know your investment timeframe

10 yrs

3 yrs

5 yrs

1 yr

2 yrs

now


Thornton Group

Portfolio construction

3

three

three

RULE:

Understand the trade-off between

risk and reward

high

risk / return

low


Thornton Group

Portfolio construction

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

%

Historical Sector Returns  as at 30 June of each year

chasing returns

Chasing returns

SOURCE: Lonsec, 30-06-10, "Annual Investment Returns to 30 June 2010"


Thornton Group

Portfolio construction

If past history was all there

was to the game,

the richest people would be librarians.

Warren Buffett


2010

Thornton Group

Portfolio construction

Risk Profiles  Historical characteristics for the 10 year period to 30 June 2010

Growth assets 60%

Property : 12%

International shares : 14%

Australian shares : 34%

Growth assets 100%

Property : 10%

International shares : 30%

Australian shares : 60%

Growth assets 80%

Property : 12%

International shares : 20%

Australian shares : 48%

Chasing returns

SOURCE: Lonsec 08-2010, “Risk Profiles: Historical Characteristics”


Thornton Group

Portfolio construction

Growth stock

what is it?

Stock of a company which is growing earnings and/or revenue faster than its industry or overall market.

Such companies usually pay little or no dividends, preferring to use the income to finance further expansion.

www.investorwords.com


Thornton Group

Portfolio construction

Property

what we look for

  • Diversified exposure achieved via:

  • Managed funds, direct, indirect, listed, unlisted, syndicated sectors

  • Factors considered:

  • debt structure

  • structure of cash flow / rental income

  • quality of tenant & level of tenancy

  • capital expenditure on the building

  • green & water ratings

  • regularity of valuations & timing of rent reviews

  • physical location of assets


Thornton Group

Portfolio construction

International shares

what we look for

  • Diversified exposure achieved via:

  • Managed funds

  • Factors considered:

  • preferred economies (mature or emerging)

  • managers with consistent performance in selected country

  • management of currency risk (hedged vs. unhedged)

  • absolute return funds - no index hugging!


Thornton Group

Portfolio construction

variable risks & opportunities

Australian shares

what we look for

1

2

Strength of domestic & global economies

Environmental factors

Appealing sectors

Legislative

changes

7

Know when to RUN

3

  • Strength of companies

    • barriers to entry

    • comparative advantages

Media sentiment

Sector weightings

Global influences (trade policies / war)

6

Health of Balance Sheet

4

Reliability of cash flow & profit

Australian

shares

what we look for

5

Monetary policy


Thornton Group

Portfolio construction

what makes our market


Thornton Group

Portfolio construction

Example portfolio

what we look for

Core stocks  “long”

“Un-loved”

Spreads via listed managed funds & indices

Prospective

Break-ups

Takeover targets

Trade stocks  “short”

example portfolio

what we look for


Thornton Group

Portfolio construction

Core stocks

Popular picks

Core stocks  “long”


Thornton Group

Portfolio construction

Growth stocks

what we look for

CSL

BHP

CBA


Thornton Group

Portfolio construction

4

four

four

RULE:

If it seems too good to be true...

it usually is!


?

Thornton Group

Portfolio construction

?

Questions

?

?

?

?

?

?


ad