A Share Wealth Systems Intelledgence Public Portfolio was started on the 4th of August 2006 with a $350,000 capital injection. The portfolio has been traded through the bull market of 2006 early 2007 and the recent 53.99% fall in the All Ords index due to the Global Financial Crises. The current value of the portfolio as of the 23rd of May 2011 is $432,932 or 4.53% compounded pecentage points per annum. This compared to investing $350,000 in the All Ords index, over the same period, would be worth $335,580 or -0.87% compounded pecentage points per annum.

It must be said that Intelledgence does not have the same mechanical hedging capibilities as SPA3 and SPA3CFD. The portfolio results have been acheived through long only stocks.


The table below shows the active investment returns from following the Intelledgence investment system that did around 60 trades over the 6 year 8 month period from 2000 to November 2006, compared to the ALL-ORDS Accumulation Index and compared to the averaged equity-based managed fund returns. When you compare raw returns it really isn't worth paying exorbitant managed fund fees which eat into your return.

*Beware* - Read and understand the fine print - Most Managed Funds quote returns without exit fees and most of our competitiors quote returns without brokerage. All Share Wealth Systems statistics are always quotes new of fees as they are a real cost in an overall real portfolio return.

Intelledgence- Outperforming Managed Funds and the Market

Starting Capital of $50,000

	Profit/Loss	Total portfolio capital	% Return	Compounded annual %
Intelledgence Portfolio	$95,700	$145,700	191.40%	18.19%
All-Ords Accumulation	$56,450	$106,450	112.90%	12.53%
Managed Fund Average	$40,850	$90,850	81.70%	9.78%

---

Starting Capital of $350,000

	Profit/Loss	Total portfolio capital	% Return	Compounded annual %
Intelledgence Portfolio	$670,082	$1,020,082.04	191.40%	18.19%
All-Ords Accumulation	$395,000	$745,000	112.90%	12.53%
Managed Fund Average	$286,000	$636,000	81.70%	9.78%

All actions were taken mechanically following the Intelledgence buy/sell signals. Notice how the Managed Fund average doesn't outperform the market. Why? Largely because of fees and making errors while turning over capital in trying to outperform the market.

With Intelledgence Money Management and Risk Management our research has shown that the Intelledgence Methodology should yeild portfolio returns of 5 - 9 compounded percentage points per annum better than the ALL-ORDS over a 5 year period (depending on market conditions). Each trade would typically include on average at least three dividend payments.

The raw researched stats shown below illustrate the performance of Intelledgence without position sizing including dividends since the mechanical system commenced on 29 January 1988.



These results exclude brokerage and GST costs but do include slippage using the following trading day's close price as the entry and exit price. These are outstanding results for a Long Term or any term trading methodology.

Assuming discount online brokerage rates of .11% each way, simply reduce the Profit % figures by .22% and increase the Loss % figures by .22% to arrive at the Intelledgence Statistics including brokerage and GST costs. You can do this with 'raw edge' statistics but NOT with a portfolio of historical trades.

It is very important to understand the impact of brokerage and GST costs on a portfolio. Most vendors don't tell you this because they either don't have the research tools, know how or credibility to quote otherwise. Beware of vendors that:
exclude brokerage from their sample portfolio returns and trade lists .
quote portfolio returns using trade lists and suggest you reduce the overall profit by a brokerage amount. It isn't that simple and lacks credibility.

Why? This is because the trading costs reduce the available investment capital and therefore the position size of the next trade. The compounding effects of reduced position sizes linked to the frequency of trading is increased further with shorter-term methodologies.

Share Wealth Systems will always quote portfolio returns net of trading costs for all of our methodologies. Remember that the shorter the time frame that trades are open the greater the impact brokerage will have on returns.