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LISTED funds manager Flagship Investments Ltd’s (ASX: FSI) year ended with a whimper as the share market faltered, but it still managed to deliver a 26.2 per cent return on its portfolio of listed stocks over the past 12 months.
The Gold Coast investment vehicle, headed by Manny Pohl, posted negative returns over the June quarter, just slightly ahead of the All Ordinaries Index.
Its portfolio dipped 0.3 per cent in value over the period, compared to a 0.4 per cent fall in the broader market.
The last-quarter setback for Flagship followed strong gains in the previous two quarters.
This helped the portfolio deliver a return that was more than double the All Ordinaries’ 12.7 per cent gain over the 2014 financial year.
Shares in the utilities sector performed best over the June quarter, says Flagship in its quarterly report.
Returns for utilities were up 6.4 per cent on the previous quarter, followed by energy and telecommunications with 5.2 per cent and 1.9 per cent respectively.
Flagships also notes that the June quarter marked the fifth year of the global economic recovery, although it “appears to have lost its impetus this year as different regions still battle their own respective headwinds including lack of global demand for goods and services”.
“However, in spite of increased geopolitical risks, the market has had low levels of volatility over the quarter, arguably reflecting investor complacency as they shrugged off the consequences of these issues,” it says.
Flagships says the US economy contued to improve over the quarter, which saw the S&P 500 surge 4.7 per cent and the Dow Jones rise 2.2 per cent.
Flagship says it readjusted its portfolio over the June quarter, selling some of its shares in SEEK (ASX: SEK) and lifting its position in Brambles (ASX: BXB), WorleyParsons (ASX: WOR) and Woodside Petroleum (ASX: WPL).
The company says cash levels fell following the payment of dividends.
Flagship’s share portfolio was valued at $42.2 million at the end of June, giving the company a net asset backing of $1.744 per share.
The company’s top five stock holdings are Commonwealth Bank (ASX: CBA), SEEK, Telstra Corporation (ASX: TLS), Carsales.com (ASX: CRZ) and Rio Tinto (ASX: RIO).
Flagship shares last traded at $1.60.
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