Diversified Portfolios - InvestSMART International Equities - 31 August 2016

InvestSMART International Equities Portfolio August Report

COMMENTARY


PORTFOLIO COMMENTARY

The InvestSMART International Equity Portfolio posted another positive month, up1.4%, marginally outperforming the index. Emerging market equities were the stand out performer amongst the different regions, returning 3.7% for the month. Developed market equities returned 1.3$ for the month with Japanese and European equities performing slightly better than US equities.

The underweight to the US is based on the view that US valuations look expensive relative to other parts of the world and relative to their own history.

The portfolio continues to be positioned with an underweight to US equities and holds an exposure to emerging markets (which is absent from the benchmark).Therefore, the portfolio is expected to perform well in an environment where non-USequites perform better than US equities.

 

 

 




PORTFOLIO OBJECTIVE

The objective of this model portfolio is to provide investors with a high level of exposure to the international equities share markets. The portfolio is invested across a range of ASX-listed ETFs aimed at achieving a diversified portfolio. The portfolio is expected to display high levels of volatility and will have a high level of currency risk.

Growth of $10,000


Income Reinvested




 




Source: Praemium, RBA. Returns are before expenses and fees. Returns are shown as annualisedif the period is over 1 year. * Since Inception (SI) date is 24 October 2014.



 


PERFORMANCE TO 31 AUGUST 20161 MONTH3 MONTH6 MONTH1 YEARSI* (P.A.)
InvestSMART International Equities Portfolio 1.38% 0.44% 8.75% 2.01% 11.48%
MSCI World ex Australia NR AUD Index 1.29% -0.64% 6.76% 0.46% 13.19%
Excess to Benchmark 0.09% 1.08% 1.99% 1.55% -1.71%



Important Information

While every care has been taken in preparation of this document, InvestSMART Financial Services Limited (ABN 70 089 038 531, AFSL 226435) (“InvestSMART”) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and see professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. This document has been prepared for InvestSMART by InvestSense Pty Ltd ABN 31 601 876 528, Authorised Representative of Sentry Asset Management Pty Ltd AFSL 408 800. Financial commentary contained within this report is provided by InvestSense Pty Ltd. The information contained in this document is not intended to be a definitive statement on the subject matter nor an endorsement that this model portfolio is appropriate for you and should not be relied upon in making a decision to invest in this product. The information in this report is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. No representations or warranties express or implied, are made as to the accuracy or completeness of the information, opinions and conclusions contained in this report. In preparing this report, InvestSMART and InvestSense Pty Ltd has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us. To the maximum extent permitted by law, neither InvestSMART, InvestSense Pty Ltd or their directors, employees or agents accept any liability for any loss arising in relation to this report. The suitability of the investment product to your needs depends on your individual circumstances and objectives and should be discussed with your Adviser. Potential investors must read the PDS, Approved Product List and FSG along with any accompanying materials. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income, but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Past performance of financial products is not a reliable indicator of future performance. InvestSense Pty Ltd does not assure nor guarantee the performance of any financial products offered. Information, opinions, historical performance, calculations or assessments of performance of financial products or markets rely on assumptions about tax, reinvestment, market performance, liquidity and other factors that will be important and may fluctuate over time. InvestSense Pty Ltd, InvestSMART Financial Services Limited, its associates and their respective directors and other staff each declare that they may, from time to time, hold interests in Securities that are contained in this investment product.

Suited to investors with a minimum investment timeframe of seven years and a high tolerance for volatility, the InvestSMART International Equities Portfolio provides Australian investors the ability to tap into the high potential growth of global shares.

It can provide more than 90% exposure to international equity markets.

This portfolio enables investors with a high weighting in Australian equities and cash to gain global low-cost exposure to sectors, industries and companies that may be under represented in Australia, with the potential for high capital growth.

All InvestSMART Diversified portfolios are continually managed by our expert team of analysts and overseen by our Investment Committee, to ensure you have the right mix of securities to meet the investment objectives with the benefits of strategic asset allocation expertise and low cost rebalancing.

Find out how this portfolio may fit within your investment strategy. Contact us at support@investsmart.com.au or 1300 880 260 to speak to one of our product specialists.

Overview

Style: A diversified portfolio of International Index ETFs
Benchmark: MSCI World (ex-Australia) Index, unhedged
Objective: To outperform the unhedged MSCI World (ex-Australia) Index over rolling 3 year periods
Risk Rating: Very high
Suggested Timeframe: 7+ years
Income Potential: Low
Growth Potential: Very high
Investment Fee (inc. GST): 0.65% - 0.97%
(depending on amount invested)
Estimated Expense Recovery $30 - $60 per investor per year
Minimum Investment: $5,000
Asset Class Allocation
International Equities 70.81%
Cash 2.11%
Australian Equities 26.94%

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