Investing

Model Portfolio and SMA Update – Changes from July Review

Each month all Model Portfolios and the SMA Model Portfolios (“Portfolios”) are reviewed by the ACBC Investment Committee, based on the recommendations from the Chief Investment Officer, Ian Martin.

Based on the Model Portfolio Rules and Maintenance, each Portfolio considers the current YTM of all XTBs, including the availability of new XTBs.

To make a change to a Portfolio, the YTM of the Portfolio should increase by a minimum of 5% at the time of the recommendation.

SMA Model Portfolio

ACBC Fixed Income No. 1

  • Portfolio prior to any switches YTM = 2.91%
  • Portfolio’s current YTM = 3.05%
  • Percentage change in YTM = 5%
  • Result: Change implemented
    • Remove YTMIPL Add YTMDX1
Portfolio Summary1 Effect of  Switches
YTM 3.05%  0.14
Running Yield 4.89% -0.12
Years to Maturity 4.71 0.84
Modified Duration 3.98 0.62

Model Portfolios

High Yield

  • Portfolio prior to any switches YTM = 3.10%
  • Portfolio’s current YTM = 3.26%
  • Percentage change in YTM = 5%
  • Result: Change implemented
    • Remove YTMWE1 Add YTMDX1
Portfolio Summary1 Effect of Switches
YTM 3.26% 0.16%
Running Yield 5.38% -0.01%
Years to Maturity 4.32 0.70
Modified Duration 3.57 0.50

Concentrated High Yield

  • Previous Portfolio YTM = 3.30%
  • Current Portfolio YTM = 3.47%
  • Percentage change in YTM = 5.15%
  • Result: Change implemented
    • Remove YTMAZJ Add YTMDX1
Portfolio Summary1 Effect of Switches
YTM 3.471% 0.18%
Running Yield 5.36% -0.17%
Years to Maturity 4.61 1.01
Modified Duration 3.75 0.69

Maturity Ladder

  • Current Portfolio YTM = 2.85%
  • Result: No change recommended
Portfolio Summary1 Effect of Switches
YTM 2.85% N/A
Running Yield 5.47% N/A
Years to Maturity 2.67 N/A
Modified Duration 2.29 N/A

Maturity Ladder (Series 2)

  • Current Portfolio YTM = 3.11%
  • Result: No change recommended
Portfolio Summary1 Effect of Switches
YTM 3.11% N/A
Running Yield 5.48% N/A
Years to Maturity 3.12 N/A
Modified Duration 2.66 N/A

Cash Plus

  • Current Portfolio Trading Margin (TM) = 0.55% (YTM = 2.61%)
  • Result: No change required
Portfolio Summary1 Effect of Switches
Traded Margin BBSW + 0.55% N/A
Running Yield 2.714% N/A
Years to Maturity 2.67 N/A
Modified Duration 0.08 N/A
1 As at COB 11 July 2017. Source Australian Corporate Bond Company

Q2 2017 Performance Reports Now Available

 

 

High Yield Model Portfolio

Find out more about this model portfolio of XTBs

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Maturity Ladder Model Portfolio

Find out more about this model portfolio of XTBs

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Concentrated High Yield Model Portfolio

Find out more about this model portfolio of XTBs

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