Six Park currently offers five core investment portfolios. Each portfolio features a different blend of our preferred ETFs and has been designed to provide an optimal risk/return balance for specific investor profiles.
Our lower-risk portfolios contain higher proportions of defensive assets (such as bonds) and lower exposure to riskier asset classes like shares. As we move across our portfolio range, we apply greater weightings towards assets such as Australian and overseas shares, which offer higher risk but higher potential returns.
Although our portfolios may appear simplistic at first glance, they represent significant underlying analysis and careful crafting by our investment team.
Our portfolios are diversified across all major asset classes through ETFs with literally thousands of underlying positions. Studies have shown it is increasingly difficult to improve the risk-return trade-off of well-diversified portfolios. Generally, the added complexity doesn’t materially enhance returns and instead brings rapidly diminishing benefits - especially once trading costs, minimum investment sizes and the close correlations between most sub-asset classes are considered.
Six Park started tracking our portfolios' performance in 2014, but the ETFs and underlying assets in which we invest have been around for longer, so the returns history of these ETFs and assets can illustrate how our portfolios would have been likely to perform.
The table below shows an approximation of our five core portfolios over the past 1, 3 and 5 year timeframes. These figures should be read in conjunction with our “not so fine print” below.
|Period to 31 March 2017||Conservative||Conservative Balanced||Balanced||Balanced Growth||Aggressive Growth|
The "not so fine print":
The results shown are illustrative in nature and only represent an estimate of how our portfolios might have performed in the past.
Past performance is not an indicator of future results.
Various assumptions and methodologies underlie the above figures and different assumptions and methodologies may have produced different outcomes.
The figures shown are annualised returns over the specified periods and incorporate both capital gains and distributions. No reinvestment of dividends, portfolio rebalancing or additional investment contributions are assumed.
Where available, the figures are based on the historical closing prices of our chosen ETFs and published distributions. For periods predating the inception of our chosen ETFs, we have used index returns and/or alternative proxies with adjustments for ETF fees.
The returns shown are pre-tax estimated returns. They include an allowance for Six Park’s fees (assuming a notional fully invested existing account of $50,000) and are also net of applicable ETF fees.
All figures are based on Six Park’s current asset allocations and fees and assume these allocations remained static over the respective periods. The 10-year figures, for example, include trading results during the Global Financial Crisis and do not incorporate any rebalancing or potential strategic adjustments during this period. Please carefully consider the comments above (among other things) before deciding to invest with Six Park.