by David Blumenthal The Six Park portfolios gained +2.5% to +6.2% in April, with global markets rebounding strongly on hopes of lockdown restrictions easing and a decline in new coronavirus infections. Our higher risk portfolios benefited most from the market recovery.
US equity markets were particularly strong, chalking up their largest monthly gains in more than 33 years and paring back some of their March falls.
On a rolling 12-month basis, returns are now -1.6% to -4.3%, a significant improvement on last month but still well down on +8.9% to +23.0% annual gains of just three months ago.
On a three-year basis, our portfolios have now returned +2.1% to +4.6% per annum. All Six Park portfolios are outperforming the ASX200’s return over the equivalent period (+1.7%), underscoring the advantages of being diversified across multiple asset classes. We also continue to outperform more than 90% of all equivalent risk profile multi-asset managed funds tracked by Morningstar on a rolling three-year basis, which is a particularly pleasing outcome.
| Period | Conservative | Conservative Balanced | Balanced | Balanced Growth | Aggressive Growth |
| 1 month | 2.5% | 3.4% | 4.6% | 5.4% | 6.2% |
| 3 months | -6.7% | -8.6% | -11.5% | -13.4% | -15.2% |
| 1 year | -1.6% | -1.6% | -2.4% | -3.1% | -4.3% |
| 3 years | 2.1% | 3.1% | 4.0% | 4.6% | 4.3% |
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. (4) Returns are annualised.
Asset class performance
In a stark contrast to last month, all asset classes posted gains in April. Hedged international equities were the standout performer, adding +11.6%. Read more about Six Park’s selected ETFs.
Hedged international equities (VGAD) gained +11.6% in April while unhedged international equities (VGS) returns were lower (+5.5%) as a result of the drag from the +6.2% recovery in the Australian dollar. US markets recorded their best monthly return since 1987, with the S&P 500 lifting +12.7% as investors shrugged off poor employment and economic growth data, focusing instead on signs of a flattening rate of new COVID-19 cases and expectations of an easing in lockdown restrictions. Evidence of a peak in coronavirus cases saw European and Japanese markets lift strongly, with the German Dax Index gaining +9.3% and Japan’s Nikkei rising +6.7%.
Emerging markets (VGE) rebounded +7.1% over the month. Indian equities (comprising 8% of our chosen ETF) were particularly strong, rising +14.7% as investors cheered a series of monetary support measures implemented by the Reserve Bank of India. Taiwanese shares (representing 12% of chosen ETF) also outperformed amid optimism around an expected recovery in export demand in the second half of the year.
Infrastructure (IFRA) lifted +6.8% in April. Gains were largest amongst fixed line telecommunication providers (up +27%), industrial transport firms (up 10%) and oil equipment and services (up 7%).
Australian shares (STW) added +6.5% for the month, its largest monthly percentage gain since October 2011. All but one of the market’s sub-industry sectors posted gains. The best performing sectors were energy, consumer services and software and services, which all rose by more than +22% for the month.
Global property (DJRE) returned +3.1% in April. Performances within the sector were mixed, with data centres, life science offices and industrial assets recording strong gains while hotel, retail and housing exposures remained weak. The AUD’s strong appreciation over the month was also a detractor from overall performance.
Returns across fixed income (IAF) and cash yield (AAA) were positive but muted, with an improvement in investor sentiment driving a rebound in demand for riskier assets and switch out of defensive holdings.
Six Park has lowered its minimum investment amount to $5,000 until the end of August to help make our service even more accessible. We are also waiving three months of investment management fees for anyone who funds a new account by August 31.