Six Park’s diversified portfolios generated strong returns for July 2023, ranging from 1.1% to 2.9%.
Of note, we are proud that all of our portfolios have generated positive returns for the one, three and five-year periods ending 31 July 2023. For our balanced and growth-oriented portfolios, annualised returns ranged from 6.3% to 9.3% per annum for the three-year horizon and 5.0% to 6.7% per annum for the five-year horizon.
For virtually any multi-asset class portfolio, exposure to traditionally defensive fixed income/bond assets has been a recent performance drag due to the historically rapid rise in interest rates (which tends to hurt short-term performance but over time results in higher yield/income from such fixed income assets).
Even with that drag, our clients have benefited from low-cost exposure to global shares and other growth asset classes that have reduced overall portfolio volatility whilst generating what we believe to be strong risk-adjusted returns.
Global markets – July 2023
In July, positive economic data and inflation numbers kept global markets trending in a positive direction, hoping that a relatively benign ‘soft landing’ is increasingly possible. Whilst much of the recent data has been encouraging, we would remind investors that markets remain highly unpredictable and volatile, and it is likely to take more time to fully understand the impact (benign, or less so) of higher interest rates.
Thus far, employment conditions have remained surprisingly resilient as inflation has started to reduce with the higher interest rates. Also, US consumers have helped to keep local GDP growth stronger than many had expected, given these higher interest rates. But, history shows that economic conditions and global markets are highly unpredictable.
Of note, there is an increasing concern about the lack of clarity regarding the possible erosion of economic growth in China and woes in the Chinese real estate market. These types of developments can be catalysts for market pullbacks, but that remains to be seen.
This is precisely why Six Park has always strongly advocated i) asset class diversification to manage uncertainty and risk, and ii) patience to ride out short-term volatility to help generate strong long-term performance.
Six Park Essential Portfolio Performance – July 2023
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 1.1% | 1.4% | 2.1% | 2.5% | 2.9% |
| 3 months | 0.3% | 1.1% | 2.2% | 3.0% | 4.0% |
| 1 year | 1.6% | 3.3% | 5.8% | 7.0% | 9.0% |
| 3 years | 2.4% | 4.1% | 6.3% | 7.6% | 9.3% |
| 5 years | 2.2% | 3.5% | 5.0% | 5.9% | 6.7% |
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) 3 and 5-year returns are annualised.
Asset Class Performance – July 2023
All of Six Park’s asset classes were up in July 2023, led by both hedged and unhedged global shares, and emerging markets. Global listed infrastructure and property asset classes continue to rebound after the severe negative impact that the pandemic had on these asset classes.
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 – July 2023
In July, our Sustainable portfolios performed closely in line with our Essential portfolios. 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 | 1.0% | 1.3% | 1.7% | 2.0% | 2.3% |
| 3 months | 0.5% | 1.3% | 2.5% | 3.4% | 4.5% |
| 1 year | 1.6% | 3.1% | 5.8% | 7.0% | 9.2% |
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.