Invast Blog

Where Are The Opportunities In The Australian Technology Space? – Investment Insights

We wrote about Australian property exposures on Tuesday. It has been a good month for the portfolio. Another area of outperformance is the ASX Cycle Leaders portfolio provided by our PortfolioInvestor platform. This is another example of a portfolio which has been developed by the Invast Investment Committee and launched since last year. We continue to provide opportunities like this that provide investors a balanced set of exposures outside of the overall ASX200 index, which can be heavily skewed towards a certain set of names.

The ASX Cycle Leaders portfolio has delivered a 7.8% return for the month ending 25 March.* Sigma and Vocus communications have been the standout names – adding 25.6% and 16.5% respectively over the time period.* Vocus remains a key standout performer and shows that there are opportunities to generate large returns when pinpointing and focusing on growth stories with strong substance. Vocus is finding itself as a key exposure in the Australian technology space and stands to benefit from ongoing digital infrastructure transformation. It is now a very serious business.

The portfolio is still heavily exposed to the banks – this will need to be monitored carefully. When the interest rate cycle turns, the Cycle Leading banks in this portfolio need to be revised. We’re actively looking at this and discussing at our monthly Invast Investment Committee meetings. Regional and second tier banks do well when rates fall but when rates rise, the operating leverage comes back to work the other way. Goodman is a name that we are comfortable with, we’re also discussing adding this stock to some of our other portfolios. It is now a very large Australian business with international operations.

To find out more about Invast’s PortfolioInvestor platform – and strategies like ASX Cycle Leaders – click here.

Best regards,

Invast Investment Committee

These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email support@invast.com.au. Alternatively, use our live chat facility on invast.com.au.

*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.

Featured Portfolios

The Invast PortfolioInvestor platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.

Bullish Australian Property

Bullish Australian Property

A selection of large Australian listed companies which benefit from rising property prices.

 

ASX Cycle Leaders

ASX Cycle Leaders

A portfolio of 10 – 15 Australian ASX listed shares that will benefit from the Macro Economic Business Cycle as defined and taught by Calnan Flack.

 

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