by David Blumenthal The Six Park portfolios recorded gains of +0.4% to +1.6% for the month of July. This marks the fourth successive month of positive returns for all of our portfolios. On an annualised basis, our portfolios have returned +4.1% to +13.2%, a pleasing result that highlights the advantages of our low-cost, globally diversified investment approach.
Six Park Portfolio Performance – July 2018
| PERIOD | CONSERVATIVE | CONSERVATIVE BALANCED | BALANCED | BALANCED GROWTH | AGGRESSIVE GROWTH |
|---|---|---|---|---|---|
| 1 mth | 0.4% | 0.6% | 1.1% | 1.4% | 1.6% |
| 3 mths | 1.6% | 2.5% | 3.1% | 3.6% | 3.7% |
| 1 year | 4.1% | 6.8% | 9.9% | 12.3% | 13.2% |
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
Almost all asset classes posted gains in July, with the strongest performers being emerging markets, global equities and local shares. Global property was the weakest asset class over the month, falling -0.4% primarily on the back of currency gains.
After successive months of declines, emerging markets rebounded +3.2% in July. Key contributors were Indian equities, which benefited from a buoyant start to their local earnings season, and Mexican and Brazilian markets, which gained on easing political concerns.
Global equities added +2.2% for the month. US stocks made solid gains (up approximately 4%), boosted by strong corporate earnings (86% of companies in the S&P500 beating their earnings estimates) and higher-than-expected employment, retail sales and manufacturing figures. European equities also advanced, buoyed by receding trade tensions (including an agreement between the US and EU presidents to work towards zero tariffs on industrial goods).
Australian shares rose +1.4%, marking a fourth consecutive month of gains and pushing shares to a new 10.5-year high. Materials stocks were the strongest performers over the period, rising 3.5% on higher than expected growth in China and buoyant domestic infrastructure activity. Financial stocks also posted solid gains, partially unwinding a long period of underperformance.
Infrastructure stocks added +1.2% in July, boosted by strong earnings results particularly amongst North American utility stocks. Key contributors included Nextera Energy, Enbridge and American Tower (which collectively comprise 12% of IFRA, our selected infrastructure ETF) which all reported Q2 earnings that exceeded analyst expectations.
Fixed income and cash yields were positive but subdued in July, reflecting the prevailing low interest rate environment.
After four successive months of positive returns, global property slipped -0.4% in July. Although US and European real estate stocks posted slight gains over the month, this was more than offset by a 0.5% rise in the AUD (which decreased the value of overseas assets in local currency terms).
Six Park publishes its performance returns monthly, including by portfolio and by asset class. You can view past performance reports by visiting the “Insights” section and selecting “Performance updates”.