David Blumenthal Six Park by David Blumenthal

February might be a short month, but it certainly didn’t leave investors “short” of returns, with all asset classes (somewhat unusually) posting positive returns. The Six Park Portfolios advanced +0.7% to +2.1% over the month. Our portfolios are now up +4.0% to +14.3% on a rolling 12-month basis, reflecting the benefits of our low cost, globally diversified approach to investment.

1 mth 0.7% 1.2% 1.5% 1.9% 2.1%
3 mth 1.2% 2.2% 3.1% 3.8% 4.5%
1 year 4.0% 6.8% 10.0% 11.8% 14.3%

(1) Past performance is not indicative of future performance. (2) No rebalancing, cash holdings or trading costs are included. The calculations are based on the published closing prices for each ETF, not NAV. They assume dividend reinvestment.

Infrastructure and global property markets were the strongest performers during February (a fortuitous outcome given our recent switch to these asset class ETFs) although all asset classes advanced during the month.

Global infrastructure stocks were up +4.5% in February, bolstered by expectations of US President Trump’s infrastructure plans.

Global listed property rebounded during the month, gaining +2.6% on the back of strong earnings results from a number of US real estate stocks.

Australian shares were up +2.3% in February. Despite weakness across resource stocks and a firmer AUD, the local sharemarket was buoyed by a stronger than expected reporting season. A Goldman Sachs research report noted that 77% of companies delivered positive earning growth this season (compared with 54% last year).

Emerging markets added +1.7% for the month and are now up +20% for the year. The sector continues to benefit from expectations from an improving outlook for global growth and economic trade.

International shares ended the month up +1.6%. The S&P 500 surged +4.0% and hit record highs. Japanese and European markets were also strong amid optimism about global economic growth. These gains were offset slightly by the 1.6% gain in the AUD

Returns across our bond and bank deposit ETFs were slightly positive (up +0.1% and +0.2% respectively), reflecting both the prevailing interest rate environment and rising inflation expectations.

Published February 28, 2017