by David Blumenthal Equity markets rebounded in April as solid corporate earnings and an easing in global trade war concerns helped restore investor confidence. The Six Park portfolios gained +0.8% to +3.6% for the month, with our higher risk portfolios benefiting most from the sharemarket rally. On a rolling 12-month basis, our portfolios are now up between +2.2% and +7.2%.
Six Park Portfolio Performance – April 2018
| PERIOD | CONSERVATIVE | CONSERVATIVE BALANCED | BALANCED | BALANCED GROWTH | AGGRESSIVE GROWTH |
|---|---|---|---|---|---|
| 1 mth | 0.8% | 1.7% | 2.5% | 3.3% | 3.6% |
| 3 mths | 0.7% | 0.8% | 0.9% | 1.1% | 1.0% |
| 1 year | 2.2% | 3.3% | 5.3% | 6.6% | 7.2% |
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.
ASSET CLASS PERFORMANCE
Equities, property and infrastructure all gained strongly in April, rising between +3.5% to +4.4%. Fixed income was the weakest asset class, declining -0.6% for the month.
Global shares climbed +4.4% in April amid solid corporate earnings in the US and Europe, stronger than expected US GDP figures and a spate of European merger/acquisition activity. Sector returns were also boosted by a 1.2% decline in the AUD (which increased the value of overseas assets in local currency terms) and an overall easing in tensions surrounding global trade and North Korea geopolitics.
Global infrastructure added +4% for the month, buoyed by strong performances by US pipeline stocks, Australian toll road operator Transurban and UK regulated infrastructure stock.
Australian shares also returned +4% in April. Although the financial sector lost ground amidst the continuing fallout from the Banking Royal Commission, this was more than offset by strong gains across energy and mining stocks, which all rose sharply on the back of rising oil and commodity prices. Healthcare stocks were also up significantly (+7.4%), boosted by takeover activity (Healthscope) and earnings upgrades (CSL).
Global property posted a 3.5% gain in April. Real estate markets across the US and Japan were key contributors, aided by strong earnings results (particularly amongst US retail and hospitality trusts) and takeover activity. The falling AUD further bolstered returns.
Emerging markets gained +1.9%. While Chinese equities were weaker (a function of lower-than-expected retail sales data), rising oil prices, favourable Indian GDP figures and a falling AUD helped the sector end the month in positive territory.
Our cash yield ETF again posted a moderate gain of +0.2%. With the RBA keeping cash rates on hold for a 18th consecutive month, interest rates on domestic savings accounts remain muted.
Fixed income declined -0.9% in April. During the month, yields on Australian government bonds tracked upwards, following the lead of US bond markets. Since bond prices are generally “inversely related” to interest rate yields, this resulted in a fall in domestic bond prices.