Markets were volatile again in April, as anticipated, with Six Park’s portfolios falling 1.1% to 1.8% over the month. 

International shares and, to a lesser extent, emerging markets and Australian shares, were down for the month, with listed property and infrastructure posting solid returns for April.

All of our portfolio returns over periods of 12 months or longer remain positive and, to the end of April, Six Park has delivered annualised five-year returns of +3.0% to +8.1% after fees.

Investors who have entered the market over the past three months will have felt the brunt of global markets moving down thus far in 2022. As we’ve emphasised previously, asset class diversification helps to moderate losses during periods when the share markets are down, and we believe that most investors are best served by remaining patient through such market cycles (long-term history points to markets always recovering after corrections).

As noted in our last update, relatively new investors may have seen their investment values swing materially (both up and down) over short periods of time, which is why we stress the importance of diversification, patience, and periodic portfolio rebalancing (versus trying to time the market).

Six Park Essential Portfolio Performance – April 2022

Period Conservative Conservative Balanced Balanced Balanced Growth Aggressive Growth
1 month -1.1% -1.3% -1.6% -1.8% -1.8%
3 months -1.2% -0.8% -0.9% -1.1% -0.5%
1 year 1.2% 2.5% 3.7% 4.6% 6.2%
3 years 3.0% 4.6% 6.3% 7.4% 8.1%
5 years 3.4% 5.2% 7.0% 8.3% 9.1%

Notes:

(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

International shares (VGS, VGAD) were the worst performers in April, with growth stocks continuing to fall in the face of rising interest rates and concerns about a possible slowing of global economic conditions.

Fixed income (IAF) is still underperforming as markets digest the same concerns about rising interest rates. Ultimately, the sell-off of bonds will result in higher yields over time, and bonds remain an important defensive asset class within our portfolios.

Global listed property (DJRE) and global listed infrastructure (IFRA) performed relatively well in April (and indeed over the past year) and remain good examples of how such asset classes can help buffer losses when other growth asset classes fall.

Read more about Six Park’s selected ETFs.

 

Notes
(1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.

(2)  Results reflect asset class performance for ETFs used in Essential portfolios. Performance for sustainable ETFs is broadly in line with the results shown.

Six Park Sustainable Portfolio Performance – April 2022

Our Sustainable portfolios are currently behind our Essential portfolios due to their higher exposure to tech companies/growth stocks which have underperformed over the past year. 

It’s important to note that our Sustainable portfolios are designed to perform in line with our Essential portfolios but, over time, there will be periods of slight outperformance and underperformance. 

Period Conservative Conservative Balanced Balanced Balanced Growth Aggressive Growth
1 month -1.1% -1.4% -1.8% -2.0% -2.1%
3 months -1.4% -1.3% -1.5% -1.7% -1.1%
1 year 0.6% 1.4% 2.7% 3.6% 5.2%

Notes:

(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.

 

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Published May 16, 2022

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