Vistafolio is Wealth Morning’s Managed Account solution for Eligible and Wholesale Investors. Once a month, we update account holders on the strategy and performance. Please find our latest update as follows:

Investors are now scared that rapid rising rates will pull economies into a recession.

At the same time, we face the worst European war in a generation. And threats to the global order spanning the Indo-Pacific.

So, we must forgive the fearful for engaging in a little sell-off.

But this is not the time to lose your nerve. While assets like property and high-risk instruments like crypto stumble, many productive companies are holding their own.

Over the past 6 months, one of our ‘cockroach stocks’ is actually up over 30%.

It produces low cost electricity in Australia and thus far has proven rather immune to inflation. AGL Energy [ASX:AGL] is the country’s largest and oldest generator. It has advantage in low-cost generation. Though it was previous out of favour as it struggled to transition to renewable generation.

Further, most of our stocks produce good dividends with typical running yields on portfolios at around 5% p.a.

Unfortunately, June was not a strong month for dividend payments.

Overall, for the month of June 2022, we are down 6.86% across the composite portfolio (total aggregate return across all portfolios following the strategy). This brings our overall annualised return for the year tracking at around negative 5%.

Please see our performance chart for more details.

This is better than cash (down nearly 7% with inflation in New Zealand). It is better than Auckland property (down 8.8%). And it is better than gold, down 13% for the month.


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Then there is the upside. Our mix of portfolio positions is resilient, income-rich, and has potential for rapid turnaround as the market turns.

Of course, we do not know where the bottom of this quite aggressive bear market is or will be. Perhaps it has already been. From memory, June 20th was a particularly red day.

To my way of thinking, stocks in quality productive businesses remain one of the best, most resilient assets around. And, personally, I am heavily investing in my own account. These opportunities to buy quality at great value do not come along very often.

So, with some courage and faith, I encourage you to add funds to your account now.

Markets generally follow a state of positive drift. Since there are always funds in need of a productive home, they keep moving upwards. Until they don’t. Then, when the fear event subsides, they begin their upward drift again.

The set of fear events in front of us right now will pass. And then those who have invested in quality and value will do very well.



Simon Angelo

Editor, Wealth Morning 

Past performance is not an indicator for future performance. Your actual portfolio will differ from the composite portfolio mentioned. The information contained in this document does not constitute an offer to sell or a solicitation to buy an investment, nor should it be construed as investment advice. Vistafolio investment services are available to Eligible Investors and Wholesale Investors (not to Retail Investors) as defined in the Financial Markets Conduct Act (2013).