During November the Stonehouse Core Value Portfolio performed well recording a +0.61% performance return for the month. To contrast, the ASX All Ordinaries Index fell -1.4% over the same period. In short, our more defensively positioned asset allocation paid off. The portfolio is positioned toward achieving moderate returns with low volatility and aims to preserve capital in the face of a downswing in equity markets. To date this strategy is working well.
Through November the investments in Wingate (+5.1%), Platinum International (+5.4%), and Platinum Japan (+7.7%) were all star performers. All of these funds are internationally oriented and reflect the better fortunes of international equities vis-à-vis their domestic counterparts. In this vein, our domestic equity exposures struggled with domestic property in particular lagging. Both Phoenix (-1.9%) and SG Hiscock (-1.8%) fell and this underperformance supports our view as explained last month to take profits on what has been to date a hard running domestic property sector. Acting on these concerns we recently invested in the Brookfield Global Property Fund to benefit from both its worldwide scope and ability to sell short, thereby enhancing the Portfolio’s ability to cushion falls when the property sector turns downward.
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