by David Blumenthal Equity markets fell back in September, registering their first decline since March as uncertainty around the upcoming US election, profit-taking across the technology sector and growing worries over an emerging second wave of coronavirus in Europe weighed on investor sentiment.
The Six Park portfolios were down -0.8% to -2.5% for the month but are still up +0.7% to +1.8% for the quarter. On a rolling 12-month basis, our returns are -3.4% to -6.0%, slightly lower from last month but still outpacing the ASX200, which lost -10% over the same period. On a three-year basis, our portfolios have returned +2.5% to +5.8% per annum. This represents a gross gain of +7.6% to +18.3% after fees.
Six Park Portfolio Performance – September 2020
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | -0.8% | -1.2% | -1.7% | -2.1% | -2.5% |
| 3 months | 0.7% | 1.0% | 1.4% | 1.7% | 1.8% |
| 1 year | -3.4% | -3.9% | -4.5% | -5.3% | -6.0% |
| 3 years | 2.5% | 3.8% | 5.0% | 5.8% | 5.8% |
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.
(4) 1 and 3-year returns are annualised
Asset class performance
Fixed income and cash yield were the sole gainers for the month. All other asset classes registered declines. 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.
Fixed income rose +1% in September, with falling equity markets underpinned stronger demand and investment flows for government bonds.
Cash yield returns were also positive albeit subdued, held back by expectations of further monetary policy easing following comments by the RBA’s Deputy Governor (who outlined steps that the RBA could take to ease rates further if warranted).
Emerging markets fell -0.9%. Although Chinese stocks benefited from better-than-expected domestic economic data, the broader sector was dragged down by uncertainty over US foreign policy after the November US presidential election, rising COVID-19 infection rates and oil price weaknesses.
Infrastructure outperformed global equities during September but still lost-1.4%. Utilities and railroad stocks registered solid gains (4%+) but were offset by larger declines across pipeline and telecommunication providers.
Global property declined -2.3%. Losses were widespread across both US and European REITs, with ongoing weakness seen across the hotel, shopping centre and office sectors.
After soaring +7.2% last month, hedged international shares fell back -5%. US stocks were especially weak, as political wrangling over further fiscal stimulus measures along with profit taking across the technology sector saw the S&P500 fall by 3.9%. European stocks were also weaker as rising coronavirus cases forced several countries into lockdown once more. Unhedged international shares fared slightly better as a result of the AUD’s 3.3% depreciation against the USD but still ended the month down -1.7%.
Australian shares followed the global lead, falling -3.7%. Over two-thirds of the market ended the month in the red, with insurance and mining segments faring worst.