Deloitte SPA3 Audit

Deloitte has completed an audit of the SPA3 Portfolio 1 publicly traded model SPA3 portfolio for the period 1 July, 2006 to 30 June, 2007. The brief for the audit was to verify that:

  • Each transaction completed was in fact a valid SPA3 buy or sell signal on the trading day before the transaction was completed.
  • The price at which the transaction was transacted was the correct close price on the day after the SPA3 signal and that there was sufficient volume to complete the trade. Third party data sources were used to verify stock prices.
  • Brokerage was applied to each and every transaction.
  • There was sufficient cash available to do each and every transaction at the time that it was transacted.

    • Appendix A in the audit report shows an example of a SPA3 signal.

    Appendix B in the audit report shows EVERY transaction that occurred in the audited period which is the 2007 Financial Year.

    Appendices C and D in the audit report are Exception Reports showing execution discrepancies to the SPA3 mechanical system or discrepancies to the price that the trade was transacted at.

    The SPA3 Portfolio 1 rose by 68.00% in the 2007 FY or $193,841.52 from $285,056.75 to $478,898.27. Appendices C & D show that the discrepancies would have added another $2,728.22 to the profit for the year had the noted trading mistakes not been made.


    View the Deloitte Report.


    The portfolio equity curve shows the SPA3 Portfolio 1 daily marked-to-market equity curve compared to the ALL-ORDS. The ALL-ORDS rose by 25.36% during the same period that the SPA3 Portfolio 1 rose by 68%.