After an unusually strong start to the year in January, markets were more mixed in February across asset classes. There remains uncertainty with regard to the level and timing of interest rate increases, which could impact economic growth.
Through January 2023, the ASX 200 had been a relatively strong performer in the growth asset class but contracted 2.5% in February.
Six Park’s Essential portfolios were down from 0.1% to 0.6% in February.
The US S&P 500 was down 2.6% in February 2023, and similarly, the ASX 200 index was down 2.5% in February. Of note, the Australian dollar exchange rate strengthened versus the US dollar during the month, which means that the unhedged international shares ETF (VGS) benefitted from the currency movements and was up 3.7%.
Six Park Essential Portfolio Performance – February 2023
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | -0.6% | -0.5% | -0.4% | -0.3% | -0.1% |
| 3 months | -0.2% | -0.1% | 0.0% | 0.5% | 0.7% |
| 1 year | -2.3% | -1.8% | -1.4% | -1.7% | -0.7% |
| 3 years | 0.5% | 1.7% | 3.1% | 3.7% | 4.9% |
| 5 years | 2.2% | 3.6% | 4.9% | 5.7% | 6.4% |
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 – February 2023
The unhedged international shares ETF (VGS) was the top performer in February 2023. Read 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 – February 2023
In February our Sustainable portfolios performed roughly in line with or slightly above the Essential portfolios. This is mainly due to the fact that the Australian shares sustainable ETF (IESG) outperformed the ASX 200 index due to the exclusion of certain companies that dragged down the broader index.
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 | -0.4% | -0.2% | 0.2% | 0.5% | 0.8% |
| 3 months | 0.1% | 0.3% | 0.7% | 1.1% | 1.5% |
| 1 year | -2.6% | -2.4% | -2.2% | -2.5% | -1.6% |
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.
Final Comments
There remains much uncertainty around the likely amount and duration of prospective interest rate hikes, both in Australia and the US. This uncertainty, and the interplay with inflation and geopolitical events, continue to drive heightened market volatility. We believe that our asset allocation mix remains prudent for our clients and suggest that patience typically rewards the long-term investor.