Six Park's strong 2019 performance results demonstrate how technology combined with expert human insight are enabling everyday Australians to benefit from affordable, professional investment management.
In the 2019 calendar year, the three portfolios covering the majority of Six Park’s clients - the Balanced, Balanced Growth and Aggressive Growth portfolios - provided returns after fees of 17.8%, 21.7% and 23.1% respectively.
For those clients who preferred lower risk exposure, the Conservative and Conservative Balanced portfolios generated 7.9% and 12.7% respectively.
Six Park co-founder and chairman of its Investment Advisory Committee Brian Watson AO says 2019 demonstrated conclusively why the Six Park model (frequently referred to as “robo-advice”) should appeal to those needing to invest wisely over the medium to long-term.
“Right now, there is little reason for anyone to be holding cash, with interest rates at a record low. In short, that means you need to be in the markets, not in cash, you need to be diversified, and you need to keep costs low. You can do all those things, at your appropriate risk level, with as little as $10,000 through Six Park’s portfolios,” Mr Watson said.
Six Park co-founder Pat Garrett noted: “Before the advent of robo-advice, many of these investors would have been locked out of the opportunities that professional investment management offers. We’re proud to prove that the financial services landscape is changing,” Mr Garrett said.
“High-quality, professional investment management offering strong performance returns is now highly accessible to everyday Australians who may otherwise have fallen into the ‘advice gap’.
“We are also working with financial advisers to help meet the needs of so-called ‘orphan’ clients, who may be too small in value to be economically viable for full-service advice but can benefit from a proven service like Six Park.
“The whole Six Park team is immensely proud of the performance delivered in 2019 and we look forward to continuing to provide our conflict-free, client-focused model to produce superior post-fee returns at a low cost.”
Over the past three years, Six Park’s portfolios have now returned +4.4% to +10.5% per annum. These figures would have placed Six Park in the top 5% of all equivalent risk profile multi-asset managed funds tracked by Morningstar – a particularly pleasing result and one that underscores the benefits of our passive investment focus and thoughtful asset allocation strategies (under the guidance of our Investment Advisory Committee).
All asset classes chalked up positive returns for 2019 in a somewhat unusual period of synchronised growth. Global equities were the standout performer, up +29.0% for the year. It is worth noting that this performance was in stark contrast to the sector’s +0.4% return in 2018. This performance differential is a useful reminder of the unpredictability of markets and a key reason why our portfolios are diversified across multiple asset classes and geographies.
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