by David Blumenthal Global equity markets surged in November, buoyed by news of multiple successful COVID-19 vaccine trials and emerging clarity around the US presidential election result. Gains were widespread, with the US share market hitting record highs and Asian and European bourses chalking up double-digit returns.
The Six Park portfolios registered one of their strongest monthly gains on record, rising between +3.4% and +8.1%. Our portfolios have now almost entirely recouped the pandemic-induced losses from earlier this year. On a rolling three-year basis, our portfolios are now up +2.9% to +6.6% per annum. This represents gains of +8.9% to +21.2% after fees during that time.
Six Park Portfolio Performance – November 2020
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 3.4% | 4.5% | 6.0% | 7.1% | 8.1% |
| 3 months | 2.3% | 3.0% | 4.3% | 5.0% | 5.6% |
| 1 year | -0.9% | -0.9% | -0.6% | -1.0% | -0.9% |
| 3 years | 2.9% | 4.2% | 5.5% | 6.4% | 6.6% |
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.
(4) 1 and 3-year returns are annualised
Asset class performance
Hedged international shares led the charge in November, gaining an exceptional +11.5% over the month. Australian shares, international property and infrastructure also registered very strong gains of between +7.6% to +10.3%. 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.
A combination of COVID-19 vaccine breakthroughs and the removal of US election uncertainty sparked a strong resurgence in demand for global risk assets, driving hedged international shares up +11.5% in November. US markets hit record highs, with the Dow Jones index surging +11.8% and registering its best monthly performance since January 1987. European markets also posted double digit returns, with slowing coronavirus infection rates enabling governments to begin easing lockdown restrictions. Japan’s Nikkei Index soared +17%, driven by vaccine-related news and optimism that a return to economic normality was now in sight. A strengthening AUD (which gained almost 5% against the USD in November) pared returns for our unhedged international shares ETF to +7.2%.
Australian shares followed the lead of global markets, with the ASX200 gaining +10.3% and posting its best monthly return since March 1988. Despite a souring in trade relations with China, almost all sectors advanced, supported by improvements in commodity prices and a continued easing in COVID-19 restrictions in Victoria. Energy stocks were by the far the strongest performers, up +28.4% for the month.
Global property posted a similarly robust performance, rising an impressive +8.9% despite the strong headwinds from the AUD’s appreciation. Gains were widespread across European and US REITs, which both sectors gaining over +12% (in local currency terms) as investors began to re-price real estate assets for a “post-vaccine world”.
Infrastructure stocks added 7% for the month. Transportation stocks were the largest contributors, with the encouraging vaccine news raising investor hopes of a return to more “normal” levels of international travel and trade.
Emerging markets trailed the developed equity market sector but still gained almost 4% for the month. Latin American stocks were strongest, buoyed by rising oil prices and improved overall risk appetite. Chinese stocks were weaker, with ongoing tense US trade relations detracting from otherwise solid export and economic growth releases.
Returns on our cash yield ETF remain muted following the Reserve Bank’s widely expected decision to cut interest rates to 0.1% in early November. Fixed income returns were down slightly, held back by the “risk-on” sentiment and following signals from the RBA that it was unlikely to increase the cash rate for at least the next three years.