After a strong December, most markets were genereally down for the month of January. As the "Trump rally" ran out of steam, US equities and Small cap (in particular US small caps) fell around 2.7% and 2.4% respectively. Europe and Japan returned -2.6% and -1.1% respectively. Emerging markets fared relatively better returning 0.6% for the month. The portfolio remains underweight the US and continue to have a minor overweight to Europe and sizeable allocation to Emerging Markets (which are absent from the benchmark).
The portfolio returned -2.1% over the month of January versus the benchmark return of -2.4%. Since inception the portfolio lags the benchmark return by around 2.4%, this was predominately due to the portfolio being underweight the US which performed well over that period and the exposure to emerging markets which experienced some volatility over the latter half of last year. Over the past year, the relative performance of the US and emerging markets has reversed, however the past few months has been characterised by underperformance of the portfolio as the US rallied particularly strongly on the back of the results of the US election.
The objective of this model portfolio is to provide investors with a high level ofexposure to the international equities share markets. The portfolio is invested acrossa range of ASX-listed ETFs aimed at achieving a diversified portfolio. The portfolio isexpected to display high levels of volatility and will have a high level of currency risk.
Growth of $10,000
Performance Summary to 31 JANUARY 2017
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 JANUARY 2017||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|InvestSMART International Equities Portfolio||-2.05%||5.73%||4.04%||11.76%||10.04%|
|MSCI World ex Australia NR AUD Index||-2.36%||6.60%||5.08%||8.88%||12.44%|
|Excess to Benchmark||0.32%||-0.87%||-1.04%||2.88%||-2.40%|
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