Performance Summary
Sep24 Month: -1.0% vs FTSE All-Share benchmark -1.4%
YTD to end Sep24 : +7.8% vs +6.6%
2023 year: +9.7% vs +3.9%
2021-2023 (3 year performance): +49% vs +15%
September was personally disappointing at a -1% return because I had entered it knowing there was going to be a flurry of updates from my portfolio. Much of my focus is on unloved companies where market expectations are low or rock bottom and where the company’s operational performance has turned the corner or accelerated. With each trading update or financial report, I therefore expect my holdings to et upgrades to earning forecasts, and along with the improved sentiment, PE re-rating.
However, September was still a success, as the index was worse at -1.4%. The Boon Fund managed to outperform the index for a fifth straight month, and this leaves it YTD at a +1.2pp outperformance. Much better than back in March when I was -3.8pp behind. I’m happy with my +5pp swing vs benchmark in the last 6 months, and hopefully this continues for the last quarter of the year.
Detailed writeup for each month, as well as in-depth articles on my positions are available on the Boon Fund substack. On Stockopedia, I will be writing an abbreviated summary once in a while.
Portfolio News & My Views
September was a busy month for news flow. I have chosen four of the most recent ones affecting my portfolio, and share my thoughts.
> Personal group (LON:PGH) - HY Results to Jun24
A very solid set of results, with revenue (continuing operations) +14% and adj EBITDA +31%; nice operational gearing there. However, PBT only rose +14%, due to increased Amortisation costs from investment into the next iteration of their benefits platform, Hapi 2.0. This has now launched in recent months, with migration of all clients due by end of the year, so should drive revenue and profit growth in the coming months. The classic case of capital expenditure investment taking place and the lag to the benefits being realised.
A key metric here is the ARR of all three divisions, as a predictor of future revenues, and this has continued strong growth of c15% YoY in Insurance as well as in the Benefits Platform. With continued operational gearing, this should drive 20%+ profit growth over the next 12-18 months.
On top of this “baseline” ARR…
