Equity markets closed higher in May, with ongoing signs of global economic recovery and vaccination progress helping to offset investor concerns over rising inflation.
The Six Park portfolios gained +0.7 to +1.8% for the month, taking our rolling 12-month returns to +7.0% to +21.9% and our 3-year figures to +3.8% to +9.6%.
May marked the fifth anniversary of the public launch of our investment service. Over this time, our portfolios have delivered annual returns of +3.4% to +9.2%. This equates to gross gains of 18.1% to 55.4%, after fees and including the full impact of last year’s February/March pandemic-related decline. These solid returns highlight the benefits of our low-cost, diversified investment approach.
Six Park Portfolio Performance – May 2021
|Period||Conservative||Conservative Balanced||Balanced||Balanced Growth||Aggressive Growth|
(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
All asset classes posted positive returns in April, an unusual but welcome period of synchronised growth. Hedged international shares were the standout performer, rising +4.6%.
(1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.
Global property gained +2.8% in May, with both European and US real estate stocks edging near their pre-pandemic levels, underpinned by the ongoing economic recovery and solid progress with vaccine distribution.
Australian shares advanced +2.6%, outperforming their global counterparts and chalking up an eighth consecutive month of positive returns. Almost all sectors of the ASX200 recorded gains, led by financial stocks (up 4.4%) and healthcare (+3.5%).
Emerging markets rose 2%, buoyed by rising commodity prices and a weaker US dollar (a falling USD is typically positive for emerging markets as it boosts the value of foreign currency-denominated assets and reduces the cost of US-denominated debts). Indian stocks were also firmer amid indications that the country’s wave of COVID-19 infections may have peaked. Chinese stocks were the main laggards, closing slightly down on the back of the announcement of new regulations for the country’s technology sector.
International shares were up +1.8% in May on an unhedged basis. European and UK stocks were the main contributors, aided by a stronger than expected corporate earnings season, a general loosening of lockdown measures restrictions and ongoing progress with vaccine rollouts. US stocks also posted gains but were held back slightly by higher-than-expected inflation figures (which sparked concerns that it could prompt a rise in interest rates). Japanese shares closed higher despite an extension to the country’s state of emergency in Tokyo and a relatively benign corporate reporting season. Hedged international equities underperformed slightly without the benefit of the AUD’s -0.7% against the USD over the month.
Fixed income rose slightly (+0.3%), with the local bond market benefiting from the news that the RBA intends to keep its expansionary policies in place for some time yet. Meanwhile, returns on our cash yield ETF remained marginally positive (+0.05%) reflecting the ongoing low-interest rate environment.
Infrastructure ended the month broadly unchanged (up just +0.2%). While several sub-sectors posted strong gains (pipeline stocks were up 3% and railroads up 1.9%), this was offset by the -2.4% falls across the conventional electricity segment (which comprises 32% of our chosen ETF).