by David Blumenthal The Six Park portfolios returned +0.9% to +2.1% in November, with our higher risk offerings benefiting most from a particularly strong showing from international property and shares. On a rolling 12-month basis, our portfolios are up between +4.9% to +15.9%, reflecting the recent period of synchronised growth (and low volatility) across global economies and markets.
Six Park Portfolio Performance
| PERIOD | CONSERVATIVE | CONSERVATIVE BALANCED | BALANCED | BALANCED GROWTH | AGGRESSIVE GROWTH |
|---|---|---|---|---|---|
| 1 mth | 0.9% | 1.3% | 1.7% | 2.1% | 2.1% |
| 3 mth | 1.9% | 2.9% | 4.5% | 5.7% | 6.6% |
| 1 year | 4.9% | 7.9% | 11.4% | 14.2% | 15.9% |
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 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
All asset classes advanced during November, with the strongest sectors being global property (up +3.7%) and international shares (up +2.9%).
Notes (1) Results reflect ETF closing prices, not NAV, so may differ from those published by the ETF issuers.
The global property sector surged +3.7% for the month, buoyed by strong returns across US and European markets and a 1.1% decline in the AUD (which increased the value of overseas holdings in Australian dollar terms).
International shares gained +2.9% in November. Although European sharemarkets fell (hampered by UK GDP downgrades and political uncertainty in Germany), this was more than offset by strong advances elsewhere. In the US, the S&P500 index posted its biggest monthly gain since February (+3.1%), fuelled by strong earnings results, solid economic data and an expectation of company tax cuts. In Japan, markets reached 26 year highs amidst a better than expected earnings season.
The Australian sharemarket gained +1.6% for the month, with strong advances across technology, real estate and energy stocks offsetting declines across telco and financials (the latter being dragged down by the late announcement of a banking royal commission).
Infrastructure shares were up +1.5%, aided mostly by gains in US transport and communication stocks.
Emerging market shares added +1.4% for the month, taking total annual returns for the asset class to +22.2%. South African shares were up strongly, buoyed by speculation surrounding upcoming leadership elections. Russian equities benefited from a +3.6% rise in oil prices whilst Chinese stocks (particularly in the technology and consumer sectors) rallied strongly.
Domestic bonds rose 1.1% as the market began to price in a lower probability of interest rate rises in 2018.
Returns across our bank deposit ETF remained muted, with the RBA keeping cash rates unchanged for the 15th consecutive month.