The large cap model portfolio closed out the fiscal quarter ended June 30th, 2019 with a share value of $288.89 USD. This compares to the share value of $263.78 established at the prior quarter end of March 31, 2019 and represents a net return of 9.5% US.
By way of comparison, the S&P 500 produced a return of 8.5% for the quarter. The Dow Jones Industrial Average produced a return of 2.6% for the quarter. The NASDAQ Composite Index generated a return of 3.6% for the fiscal quarter.
It was somewhat atypical of the S&P 500 to report absolute outperformance vs the tech-heavy NASDAQ. Trade issues with China had a deleterious impact upon many tech share valuations in the quarter, resultant of the hardening of positions between the United States and China, during the three months ended June 30th, 2019. In contrast, continued economic growth, ex-tech, benefitted industrial manufacturing sectors throughout America.
While a portfolio return of 9.5% in one fiscal quarter would normally be a reason for jubilation, the Gnostic account only outperformed the S&P 500 by 1% in the quarter. The outcome of what is, truly, a modest besting of a passive index, does not represent a highly satisfactory outcome. Champagne is not to be uncorked on this result.
The purpose for investing in the Gnostic large cap global model portfolio is to enable the investor to ascend global wealth rankings, to close ground and potentially overtake those with greater net worth. In order to do so, the portfolio needs to consistently surpass returns of the top returning investment products, both public and private, that are made available to ultra-high net worth investors. Furthermore, the portfolio must consistently outperform markets, with sufficient consistency, that it can mitigate the hard-wired “flight” response exhibited by mammals under stress. On that basis, the portfolio provided, yet again, a successful quarterly outturn.
An initial investment of $1 million USD at the inception date in August 2000 was valued at $28.89 million USD as of the end of the fiscal quarter ended June 30th. Alternatively, an investment of $10 million would have grown to $288.9 million USD over that prevailing timeframe.