by David Blumenthal Six Park’s Essential portfolios added between +1.0% to 2.8% in August, taking rolling 12-month returns to +9.9% to +25.2%. Over the past 5 years, our portfolios have returned between +3.9% and +10.5% per annum after fees. This equates to total gains of 21% to 65% and highlights the advantages of our focus on low-cost, diversified investing.
Global equity markets pushed higher in August, buoyed by strong corporate earnings and commentary from the US Federal Reserve suggesting that the central bank will be patient with regard to any imminent rate hikes (which was well received by investors).
Six Park Essential Portfolio Performance – August 2021
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 1.0% | 1.4% | 2.0% | 2.4% | 2.8% |
| 3 months | 3.6% | 4.5% | 5.8% | 6.7% | 7.4% |
| 1 year | 9.9% | 13.4% | 18.6% | 22.2% | 25.6% |
| 3 years | 4.4% | 6.1% | 8.1% | 9.4% | 10.2% |
| 5 years | 3.9% | 5.8% | 8.0% | 9.5% | 10.5% |
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
All asset classes posted gains in August. International shares were especially strong, advancing +3.9% (on an unhedged basis) for the month and taking the sector’s rolling 12-month return to +30.3%.
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.
International shares surged +3.9% higher in August. US stocks hit successive record highs, buoyed by strong corporate profits (particularly across financial and communication companies) and indications from the Federal Reserve that interest rate hikes were not imminent. European and Japanese stocks also gained amidst ongoing signs of global economic recovery. Hedged international shares lagged slightly but still added +3.4% for the month without the tailwind from the AUD’s 0.6% decline against the USD.
Emerging markets rebounded sharply in August, gaining +3.1%. While Chinese stocks were broadly flat (amid concerns over increased regulations, the reintroduction of lockdown restrictions and weaker production data), Indian equities (14% of our chosen ETF) rose sharply as the country’s central bank announced new measures to support economic recovery from its recent coronavirus crisis. Thailand and Malaysian stocks also posted strong gains as their respective governments eased COVID-19 restrictions on the back of lower infection rates.
Australian shares added +2.4%, marking an 11th consecutive month of positive returns and the longest run of monthly gains since 1943. Despite some rising concerns over the impact of ongoing lockdowns across NSW and Victoria, the market was buoyed by strong earnings results (particularly amongst IT and healthcare stocks) and increased merger/acquisition activity.
Infrastructure rose +2.2%, aided by the passing of a US$1 trillion spending package by the US Senate. Electricity, water and REIT stocks (which represent 56% of our chosen ETF) all registered gains in excess of +3.5% for the month. Pipeline stocks were the main laggards, falling -0.7%.
Global property gained +2% in August. US real estate stocks were the main contributors, posting solid gains on the back of the ongoing reopening of the US economy and a better-than-expected earnings season. Global property remains the best performing asset class over the last 12 months, up +34.6% over the period.
Fixed income and cash yields were positive but muted for the month, reflecting the ongoing low-interest rate environment.
Six Park Sustainable Portfolio Performance – August 2021
Since launching, our Sustainable portfolios have performed closely in line with their Essential counterparts, as we would generally expect.
We’re pleased that our clients’ sustainable portfolios are delivering what we hope: a similar risk/reward portfolio performance outcome as the aligned Essential portfolios, with the benefit of having a meaningful sustainable tilt embedded in the portfolio construction.
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 1.0% | 1.4% | 2.1% | 2.5% | 2.9% |
| 3 months | 3.7% | 4.7% | 6.6% | 7.9% | 8.8% |
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.