April was another solid month for global markets, with US equities soaring 5% as the country recorded solid progress in its vaccine rollout and better than expected economic performance.
The Six Park portfolios were up +1.5% to 3.0% for the month, with our higher risk offerings benefiting most from the continuing equity market rebound.
Our rolling 12-month returns now stand at +7.4% to +22.3% while our 3-year returns stand at +3.7% to 9.1% per annum. The latter equates to a gross gain over three years of 11.6% to 29.8%, after fees and including the full impact of last year’s Feb/March pandemic-related decline.
These figures would have placed Six Park in the top 10% of all equivalent risk profile multi-asset managed funds tracked by Morningstar, underscoring the benefits of our low-cost, diversified investment approach.
Six Park Portfolio Performance – April 2021
|Period||Conservative||Conservative Balanced||Balanced||Balanced Growth||Aggressive Growth|
(1) Past performance is not indicative of future performance.
(2) All figures are illustrative in nature based on notional $50,000 portfolios which are assumed to have been fully invested at the start of the relevant period. Your actual investment performance may vary depending on factors such as the timing of your investment with us.
(3) All figures are pre-tax but net of Six Park’s and applicable ETF fees. The results are based on closing prices for each ETF, not NAV. They assume dividend reinvestment (at month end) but do not include dividend imputation, cash holdings or annual rebalances.
(4) 1 and 3-year returns are annualised
Asset class performance
All asset classes posted positive returns in April, an unusual but welcome period of synchronised growth. Hedged international shares were the standout performer, rising +4.6%.
(1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.
Hedged international equities surged +4.6% in April. US stocks led the way, with the S&P500 advancing +5.3% on the back of a swift vaccine rollout (70% of the US population have now had at least one vaccine shot) and better than expected economic data (quarterly GDP up +6.4% and PMI, a measure of business activity, climbing to levels not seen since August 2018). European markets also gained despite a resurgence in COVID-19 infections in several EU countries, while Japanese stocks fell -2.8% following the reimposition of lockdown restrictions in Tokyo. Our chosen unhedged international shares ETF (VGS) was up +3.1% for the month, dragged down by the +2.3% appreciation in the AUD (which reduced the value of overseas holdings in local currency terms).
Australian shares chalked up a 7th consecutive month of positive returns, gaining +3.3% in April. Almost all sectors of the ASX200 advanced following commentary from the RBA that it expected interest rates to remain at record lows for some years to come. IT and materials shares were the best performers, rising +9.7% and +6.8% respectively.
Global property advanced strongly in April, up +3.2%. US real estate stocks (which comprise 61% of our chosen ETF) were once again the main driver, soaring +8.1% as many of the cyclical and Covid-exposed sectors (e.g. retail, office) reported better than expected earnings results.
Infrastructure also gained over 3% for the month. While almost all subsectors posted positive returns, stocks with exposure to the US (55% of our chosen ETF) outperformed on news of President Biden’s infrastructure spending package and rising optimism over the reopening of the US economy.
Emerging markets lagged in April but still advanced +1.3% overall. Performances were mixed across the sector. While Brazillian and Taiwanese stocks were strong (boosted by rising commodity prices and non-technology stock gains), Chinese stocks were flat and Indian stocks fell sharply as the country battled a steep rise in COVID-19 infection and deaths.
Fixed income rose +0.6% for a second consecutive month, with local bonds benefiting from news that the RBA intends to keep its expansionary policies in place for some time yet.
Returns on our cash yield ETF were once again positive but muted (+0.04%) reflecting the ongoing low-interest rate environment.