ShareFinder

Combining technical analysis and fundamental analysis

If you want to devote minimal time to you investing, but still outperform the market, you'll find IntellEdgence is the perfect match for your investor profile. All you need is about one hour each month to review your portfolio and the IntellEdgence alerts we send you. You'll hold most trades for 18.3 months on average, so there's no day-to-day activity or trading required - just a relaxed, automated process to follow.

Benefits

• Outperforms the All-Ords Accumulation Index and many managed funds.
• Yields returns of 5 - 9 compounded percentage points per annum better than the All-Ords over a 5 year period.
• Initial and ongoing costs are far less than the fees charged by most managed funds, especially for large portfolios.
• You gain trading knowledge that you can use for the rest of your life.
• Relax and wait to be alerted to take action and then let the IntellEdgence money management and risk management Portfolio Manager automate your position sizes for you before you place your order.
• With the IntellEdgence Alert and Portfolio Manager doing the work for you, you will enjoy having more time and be able to effortlessly and mechanically achieve consistent investment returns for your long-term share portfolio.
• Use the IntellEdgence Fundamental List, which is updated monthly, to see which stocks are the most fundamentally sound on the ASX.
• Offers structured processes and rules to achieve objectivity and consistency.
• Robust framework, researched and proven.
• Decisive. No guess work with position sizing and no time is wasted on researching concepts.
• Benefit from the many thousands of hours and research experience of Research Director Gary Stone who designed all of ShareFinder's methodologies.
• Investors with 'larger' position sizes can improve their performance through pyramiding and lightening alerts via the 'Accumulate' and 'Lighten' signals which allow the investor to switch capital from one trade to another without exiting the entire holding.

Key Features

Here is what you receive as an IntellEdgence subscriber:

• An Alert and Portfolio Manager with built in Risk Management and Money Management rules. Rules provide total automation of your position sizes for new buys and accumulates (add to position).
• The IntellEdgence Fundamental List ranks stocks according to their value. The list comprises of Gold Medal, Silver Medal, Bronze Medal and Qualifier categories.
• Number of positions and position sizes are fully customisable to suit your own personal risk level.
• Position sizes are automated according to market and volatility risk. Further sophistication increases position sizes by fixed 'premium' percentages should a trade be on the industry leading IntellEdgence Fundamental List.
• Focuses on both ASX200 constituents AND the IntellEdgence Fundamentals List. Stocks that pass the fundamental filter are included even if they are not on the ASX200.
• Monthly fundamental updates ensure precise fundamental examination of key historical balance sheet items ranked by a world first 'performance index' and 'value index' (earnings yields, dividend yields, PE Ratios, Return on Equity and more). Alert customisation through the desktop software and email alerts so that you are immediately alerted to buy, sell, accumulate, take profit signals and trailing stop loss (TSL) updates which are relevant to your profile and portfolio.
• Market Risk Snapshot.
• ALL-ORDS PE Ratio + CPI chart which is updated regularly.
• All alerts and data for the IntellEdgence Alerts and Portfolio Manager are available through a dynamic daily download service so all you do is act.
• The IntellEdgence Portfolio Manager provides detailed historical adjusted dividend reporting for all trades and supports for Dividend Re-investment Plan (DRP) and Imputation Credits.
• Comprehensive online manual explaining all of the intricacies of the methodology including money management and risk management rules.
• Integration with Market Master X-ec whereby the IntellEdgence buy and sell signals are shown on the relevant stock charts (coming soon).

Suitable for those that wish to:

• Put a little effort into making their own long term investment decisions.
• Run their own long term portfolio(s) in a sophisticated, efficient, consistent and objective manner.
• Manage their own portfolio that:
  • Consistently outperforms the ALL-ORDS.
  • Consistently outperforms the Managed Funds.
  • Consistently outperforms alternative Super Fund products.
• Actively invest through their own DIY Super Fund.
• Replace / compliment their StockDoctor product with a product that combines well researched fundamental and technical analysis rules and provides risk and money management rules for managing a portfolio.
• Replace / compliment other newsletters or web-based stock picking services with a methodology that is more sophisticated, precise and structured at a more affordable price.
• Take their long-term investing to a new level of sophistication through the merits of automated money and risk management combined with fundamental analysis only possible through a mechanical long-term trading methodology.

Performance

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 COMPETITORS QUOTE RETURNS WITHOUT BROKERAGE. ALL SHAREFINDER STATISTICS ARE ALWAYS QUOTED NET 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

Starting Capital of $350,000

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 yields portfolio returns of 5 - 9 compounded percentage points per annum better than the ALL-ORDS over a 5 year period. Each trade would typically include on average at least three dividend payments.

The raw 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 a discount internet commission rate 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.

ShareFinder 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.

Another consideration for IntellEdgence users is to bolster your returns with margin lending or using installment warrants where available and appropriate. This would obviously improve the returns as listed above. Active investors should carefully consider the investment vehicle they use i.e. invest in own name, via a trust, SMSF or investment company, and the tax implications (eg. lower capital gains and dividends - especially franked dividends).