Diversified Portfolio - International Equities - 31 March 2016

InvestSMART Conservative Portfolio March Report



Global equity markets posted their third consecutive month of negative returns forthe year with global equity markets down 1.0% in March. Emerging marketsrebounded however, returning 5.2% for the month, outperforming their developedmarket counterparts. Regionally, US equities returned -0.8%, performing better than Europe and Japan which returned -1.3% and -2.6% respectively over the month.

The InvestSMART International Equities Portfolio returned 0.8% for the month outperforming the MSCI World ex Australia NR AUD Index by 1.8%. The exposure to the Vanguard All-World ex US Shares Index ETF and MSCI Emerging Markets ETF were the biggest contributors to performance for the month returning 1.6% and 6.3%respectively. US large-cap equities via the iShares Core S&P 500 ETF were the worst performing, returning -0.7% for the month, while the US mid-cap exposure via the iShares Core S&P Midcap ETF contributed to performance posting a positive return of 0.8%. The iShares Europe ETF returned -0.1%.

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-US equites perform better than US equities.


Growth of $10,000

Income Reinvested


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


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.

InvestSMART International Equities Portfolio 0.76% -4.40% -3.07% -6.14% 9.13%
MSCI World ex Australia NR AUD Index -0.99% -5.81% -4.19% -3.90% 11.35%
Excess to Benchmark 1.76% 1.42% 1.12% -2.24% -2.22%

Important Information

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