by David Blumenthal Halloween may have brought October to a haunting end, but Six Park clients had no reason to be spooked. On the back of strong gains across all asset classes, the Six Park portfolios returned +0.9% to +3.5% for the month. Over a rolling 12-month basis, the portfolios are now up +3.9% to 15.6%, with our higher risk portfolios benefiting most from the strong rally in local and international sharemarkets.
| PERIOD | CONSERVATIVE | CONSERVATIVE BALANCED | BALANCED | BALANCED GROWTH | AGGRESSIVE GROWTH |
|---|---|---|---|---|---|
| 1 mth | 0.9% | 1.7% | 2.6% | 3.3% | 3.5% |
| 3 mths | 1.3% | 2.4% | 3.9% | 5.0% | 5.5% |
| 1 year | 3.9% | 7.1% | 10.6% | 13.3% | 15.6% |
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 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
All asset classes posted gains in October. The strongest sectors were emerging markets, international equities and Australian shares, which all rose over 4% for the period.
Notes
(1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.
After a flat September, emerging markets rebounded to add +4.6%. Taiwanese and South Korean stocks were standout performers. Chinese stocks were also up strongly (reaching 26-month highs) on the back of positive economic data and a cut in capital reserve requirements for banks.
International shares gained +4.4%. Japanese equities were particularly strong, boosted by Prime Minster Abe’s resounding election win, which was seen as positive for the stability of the country’s existing policy measures. Returns were also boosted by the 2.1% decline in the Australian dollar (which increased the value of overseas assets in Australian dollar terms).
The Australian sharemarket recorded its best monthly performance of the year, rising +4.1%. Key contributors were stocks in the technology (up 8%), energy (+6%) and retail sectors (+5.8%)
The global property segment was up +1.8% for the month, with gains in European property markets and a decline in the AUD helping to offset weakness across the US real estate market.
Global infrastructure rose +1.4%, helped by gains across toll road and utility segments.
Returns across our bank deposit and bond ETFs were positive but muted, with the RBA keeping cash rates unchanged for the 14th consecutive month.