Six Park Director of Strategy and Analytics Dave Blumenthal by David Blumenthal

The Six Park portfolios gained +1.0% to +2.1% in May. Share markets continued to push higher, buoyed by hopes of an eventual return to economic normality following a slowing in the rate of new COVID-19 infections and an easing in lockdown restrictions across the US and Europe.

Six Park’s 12-month returns now stand at ‑0.4% to -1.2%, still down on the +8.9% to +23.0% annual gains as at the end of January but well ahead of the ASX200’s -6.0% decline over the past year. On a three-year basis, our portfolios are up +2.2% to +4.9% per annum, which translates to an overall gain of +6.9% to +15.9% (after fees and including the recent market sell-off).

Period Conservative Conservative Balanced Balanced Balanced Growth Aggressive Growth
1 month 1.0% 1.4% 1.8% 1.9% 2.1%
3 months -3.5% -4.0% -5.2% -6.2% -6.9%
1 year -1.1% -0.5% -0.4% -0.4% -1.2%
3 years 2.2% 3.5% 4.4% 5.0% 4.9%

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

The Australian sharemarket was the standout performer in May, gaining +5.3%.  Emerging markets were the weakest, falling -3.2% and retracing roughly half of their April gains. Read more about Six Park’s selected ETFs.

Six Park performance May 2020

Australian shares (STW) outperformed global equities for only the second time this year, gaining +5.3% on the back of higher commodity prices and optimism around the easing of lockdowns across the  country. Almost all industry sectors posted gains, led by the consumer durables sector (+27%) and software services (+14.5%). Pharmaceuticals (-10.4%) and food/staples (-0.7%) were the weakest performers, both giving back some of their earlier gains from April.

Hedged international equities (VGAD) advanced +2.9% on a hedged basis in May while unhedged returns (VGS) were slightly lower (+1.4%) as a result of the drag from the AUD’s +1.4% appreciation against the US dollar. European, US and Japanese markets all registered strong gains as the rate of Covid-19 infections continued to moderate and lockdown measures began to be eased. Hong Kong was the main laggard, declining ‑2.5% on fallout from China’s proposed new national security legislation for the territory.

Infrastructure (IFRA) added +2.4% for the month, boosted by gains across the transport sub-sector, which benefited from expectations of an easing in travel restrictions.

Returns across fixed income and cash yield were positive but muted. A modest decline in government bond yields saw our chosen bond ETF (IAF) marginally outperform cash (AAA).

Global property (DJRE) fell -1.1% in May. Real estate stocks in the US and Europe chalked up gains for the month (amid a general improvement in investor sentiment) but were offset by falls in Asian markets (spooked by China’s security announcement regarding Hong Kong) and headwinds from the AUD’s 1.4% appreciation over the month.

Emerging markets (VGE) fell -3.2% over the month, dragged down by losses across Chinese and Taiwan markets (which represent a combined 52% of our chosen ETF). Both markets declined on concerns of worsening US-China trade relations following the passing of a US Senate bill that would see some Chinese companies barred from being listed on US stock exchanges.

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. 

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Published June 19, 2020

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