While September proved to be a disappointing month for local shares and bonds, a strong upswing across US, European and Japanese markets helped drive the Six Park portfolios up +0.1% to +0.8%. This result is a useful reminder of the advantages of being globally diversified across multiple asset classes.
On a rolling 12-month basis, the Six Park portfolios are up +1.7% to+ 9.5%, with our higher risk portfolios benefiting most from their higher exposures to global equity markets (which have performed particularly strongly over this period).
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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
1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.
International shares were a standout performer in September, gaining +3.1% on the back of positive economic results and strong corporate earnings across the US, Europe and Japan.
Returns across our other asset classes were mostly flat.
The global property segment was up +0.4% for the month, a reflection of generally solid earnings results, particularly in the US and UK real estate markets.
Returns across our bank deposit and bond ETFs were muted, with the RBA keeping cash rates unchanged for the 13th straight month
Emerging market equities were flat, with gains in Chinese equities offset by declines in Russia and Brazil.
The Australian sharemarket closed slightly down for the month, weighed down by investor concerns over North Korea and falling iron ore prices.
Infrastructure was the worst performer for the month, falling -1.7% due to weakness in US, UK and Australian utility stocks. The sector remains in solid positive territory over the last 12 months.