After a strong July, most major asset classes were down in August, as broad market volatility continued to drive significant swings up and down over 2022. The US S&P 500 was down 4% in August, and is down 17% year-to-date, nearing “bear market” territory.
Six Park’s portfolios were flat to down 1% over the month, but remain positive over three and five year time horizons.
We continue to stress patience to avoid trying to time a highly unpredictable market, and investment diversification to help smooth out bumpy periods in the markets like we are seeing now.
Six Park Essential Portfolio Performance – August 2022
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | -1.0% | -0.9% | -0.7% | -0.7% | -0.3% |
| 3 months | -1.2% | -1.5% | -1.8% | -2.1% | -2.1% |
| 1 year | -5.4% | -5.8% | -6.9% | -7.9% | -7.4% |
| 3 years | 0.5% | 1.5% | 2.7% | 3.4% | 4.4% |
| 5 years | 2.4% | 3.9% | 5.5% | 6.5% | 7.3% |
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 – August 2022
The asset classes used in Six Park’s portfolios had mixed returns in August, ranging from up 2.9% (VGE, Emerging Markets) and 1.1% (STW, Australian shares) to down 3.8% (DJRE, Global listed property).
As a sign of the current market volatility, Emerging Markets was the weakest performing asset class in July, yet the strongest in August. This activity highlights the difficulty in timing the markets during heightened volatility.
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 – July 2022
In July our Sustainable portfolios slightly outperformed the Essential portfolios. This is largely due to the slightly higher exposure that the Sustainable portfolios have to the technology sector, which had been underperforming of late but rebounded in July.
Note that while our Sustainable portfolios are designed to perform in line with our Essential portfolios, over time, there may be periods of relative outperformance and underperformance.
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | -1.2% | -1.2% | -1.3% | -1.5% | -1.2% |
| 3 months | -1.2% | -1.4% | -1.8% | -2.1% | -2.2% |
| 1 year | -6.2% | -7.1% | -8.8% | -10.1% | -10.0% |
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.
Investment Advisory Committee Market Commentary
Our Investment Advisory Committee will be meeting shortly and we will provide you with an update on their market views and any possible changes to our portfolio construction for clients.
If you are feeling concerned about your investments during this period of market volatility we recommend you read our recent IAC comments for further insights.