The see-saw of volatility continued in March, as markets swung back up again for most asset classes. Expectations of future levels of interest rates and inflation, and overall global economic growth, remain highly unpredictable.
With this backdrop, it is not unusual to see high market volatility, and this highlights how difficult it is for investors to time the market.
Investment performance is typically much more predictable over longer periods of time. Over the three to five-year period ending March 2023, Six Park’s growth-oriented portfolios are up approximately 5 to 10% per year, which is in line with what we would expect to see over longer timeframes. Those who have recently invested may see negative returns over the relatively short time invested thus far. It’s important to remember that markets go through up and down cycles over time, but have always risen over longer timeframes, which is why we preach the importance of patience with longer-term investing.
For the month of March 2023, Six Park’s diversified Essential portfolios were up from 0.5% to 1.0%. The US S&P 500 was up 3.5% in March 2023, and the ASX 200 index was down 1.1% in March.
Six Park Essential Portfolio Performance – March 2023
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 1.0% | 0.9% | 1.0% | 0.8% | 0.5% |
| 3 months | 2.6% | 3.1% | 3.7% | 3.8% | 3.9% |
| 1 year | -2.4% | -2.7% | -3.0% | -3.9% | -3.8% |
| 3 years | 3.3% | 5.1% | 7.5% | 8.8% | 10.6% |
| 5 years | 2.4% | 3.9% | 5.3% | 6.2% | 6.9% |
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 – March 2023
Fixed income generated the best asset class return for March 2023, driven by the prospect that interest rates may have peaked (or drop if inflation ebbs and economic conditions deteriorate). 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 – March 2023
In March our Sustainable portfolios performed roughly in line with or slightly above the 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 | 1.1% | 1.1% | 1.2% | 1.0% | 0.9% |
| 3 months | 3% | 3.7% | 4.8% | 5.2% | 5.6% |
| 1 year | -2.6% | -3.1% | -3.7% | -4.7% | -4.8% |
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.
Final Comments
Looking at March 2023, our closing comments would not change at all from last month:
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 rewards the long-term investor.