by David Blumenthal All of the Six Park model portfolios posted gains in August, aided by strong advances across almost all asset classes. Overall, our portfolios were up +0.3% to 1.0% for the month and have now returned +1.4% to +7.5% on a rolling 12-month basis.
Six Park Portfolio Performance August 2017
| PERIOD | CONSERVATIVE | CONSERVATIVE BALANCED | BALANCED | BALANCED GROWTH | AGGRESSIVE GROWTH |
|---|---|---|---|---|---|
| 1 mth | 0.3% | 0.5% | 0.7% | 0.9% | 1.0% |
| 3 mths | -0.8% | -1.1% | -1.4% | -1.7% | -1.1% |
| 1 year | 1.4% | 2.8% | 4.6% | 5.8% | 7.5% |
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 time 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 and are post Six Park’s fees and applicable ETF fees. The results are calculated using monthly closing prices for each ETF, not NAV. They assume dividend reinvestment (at the end of each month) but do not include dividend imputation. No cash holdings or annual rebalances are assumed.
ASSET CLASS PERFORMANCE
The emerging market segment was again the strongest asset class for the month, although all other asset classes, with the exception of international property sector, posted gains.
- Emerging markets were up +3.7% for the month, buoyed by strong gains in Chinese markets and across key commodities. The sector has now risen almost +15% for the year, a marked difference its 3-year average (+5.5% per annum). This variability in returns reflects the sector’s higher risk profile.
- Infrastructure rose +2.8% for the month, boosted by strong performances across key toll road, electricity and communication stocks.
- International shares gained +0.8%. Escalating US-Korean tensions weighed on investor sentiment but was outweighed by a flow of positive economic data and earnings results across US, Europe and Japanese markets.
- Australian shares were up +0.7% on the back of a strong profit reporting season. An estimated 91% of ASX200 companies reported profits for the FY17 year (slightly down from the 94% last year) and aggregate profits were over 60% higher than FY16 levels.
- Returns across our bank deposit and bond ETFs were slightly positive, reflecting the prevailing low interest rate environment.
- International listed property was down slightly for the month (-0.3%), weighed down mostly by the poor performance of US, UK and Japanese exposures.