September 2019 Quarterly Report
Investor Signals Global Investent Fund 30 October 2019
Our investment models delivered solid returns in the September 2019 quarter, as global equity markets continued their strong rally. Year to date, the models outperformed their benchmarks by a wide margin and the specific returns were as follows:
Class A +26.08%
Class B +19.29%
The 5 year average returns for both classes of units continue to track ahead of the performance benchmarks. Notably, there’s a continuation of the trend where the number of stocks held is low by historical comparison and the theme of owning quality over quantity remains.
We’re monitoring the opposing signals, where the S&P and Dow indices are under sell conditions and the NASDAQ is showing buy conditions, following a recent signal at the end of May.
3 key factors relating to the September 2019 quarter are: -
The number of individual holdings increased in the September quarter, but still remain lower than the historical average;
The hedging signal has not yet been triggered, although two of the three indices are showing warning signs; and
High beta names are being replaced and we see a theme of quality over quantity.
CLASS A- DOMESTIC SHARES
CLASS B - INTERNATIONAL SHARES
INVESTOR SIGNALS -2019 OUTLOOK
In June 2019, we launched our Investor Signals Global Investment Fund. The fund operates a Class A and Class B unit structure, which over time will reflect the full performance of our models. The first asset allocations occurred in June and as we see new buy and sell signals occur, the fund will add or remove securities in real-time.
The fund unit pricing as at 30 September 2019
Class A $0.9952
Class B $0.9925
During the June quarter, we had 17 stocks added to the ASX 100 and 5 stocks removed. In the US 100 model we had 14 stocks added and 9 stocks removed.
We’ve seen several stocks breakout from their downtrends within the September quarter of 2019. This has led to an increase in the number of buy signals, we therefore anticipate the average number of holdings across our models, to progressively increase.
We continue to remain vigilant with monitoring our portfolio hedging warning signs and will look to protect the 2019 gain, should the major indices falter. Our proprietary models will indicate the specific timing of hedging the portfolios.
Regards Leon Hinde
Chief Investment Officer