In July, most major asset classes regained a significant portion of the underperformance in June. Our ETFs representing the ASX 200, international shares (both hedged and unhedged) and global listed property all gained more than 5% in July.
The upswing in July is a good example of how quickly, and unpredictably, global investment markets can move, and how hard it is to time the market, especially during bouts of volatility.
We continue to stress the importance of patience and asset class diversification when managing a portfolio for the medium to long term.
July 2022 Performance Update
In July, the ASX 200 benchmark was up almost 6% and international shares rebounded strongly as well. The flagship US S&P 500 index was up 9% in July but is still down 13% Year-to-Date.
Six Park’s portfolios rose 3.2% to 4.8% during the month. All of the asset classes deployed in our portfolios rose for the month except Emerging Markets.
Our 3 and 5 year returns remain positive and we encourage investors to filter out short-term noise and volatility that can cause one to abandon an established investment strategy.
Six Park Essential Portfolio Performance – July 2022
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 3.2% | 3.7% | 4.2% | 4.7% | 4.8% |
| 3 months | -1.5% | -2.1% | -3.0% | -3.7% | -4.4% |
| 1 year | -3.6% | -3.7% | -4.4% | -5.1% | -4.6% |
| 3 years | 1.0% | 1.9% | 2.9% | 3.5% | 4.3% |
| 5 years | 2.7% | 4.2% | 5.8% | 6.9% | 7.5% |
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 – July 2022
The asset classes utilised in Six Park’s portfolios had returns in July that ranged from up 7.1% (VGAD, global hedged shares) to down 2.4% (VGE, Emerging Markets).
It was a strong month for virtually every asset class, which can frequently happen on the heels of a relatively poor month.
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 | 3.3% | 3.9% | 5.0% | 5.7% | 6.0% |
| 3 months | -1.5% | -2.1% | -3.0% | -3.6% | -4.3% |
| 1 year | -4.2% | -4.7% | -5.8% | -6.5% | -6.3% |
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.
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.