Diversified Portfolio - International Equities - 31 May 2016
InvestSMART International Equities May Portfolio Performance Report
International equity markets rebounded strongly during May, up 6.0% in May recovering their losses earlier in the year to be up 2.2% since the start of the year. Emerging market equities were up 1.4% in May and up 1.8% for the year to May, performing slightly better than their developed market counterparts since the start of the year. Regionally, the US was the best performing market in May ( 7.8%), while Europe and Japan returned a respectable 4.9% and 4.3% respectively.
The InvestSMART International Equities Portfolio returned 5.8% for the month lagging the MSCI World ex Australia NR AUD Index. The exposure to US equities via the iShares Core S&P 500 ETF and iShares Core S&P Midcap ETF returned 7.2% and 7.8%respectively. The Vanguard All-World ex US Shares Index ETF and iShares Europe ETF returned 5.3% and 5.4% respectively. The MSCI Emerging Markets ETF was up for the month returning 2.5% but dragged on performance relative to the benchmark.
No changes were made to the portfolios during the month. The portfolio is 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
PEFORMANCE SUMMARY SUMMARY TO 31 MAY 2016
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.
|PERFORMANCE TO 31 MAY 2016||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|InvestSMART International Equities Portfolio||5.57%||8.28%||-0.50%||-1.55%||13.11%|
|MSCI World ex Australia NR AUD Index||6.02%||7.45%||-0.12%||-0.62%||15.88%|
|Excess to Benchmark||-0.27%||0.83%||-0.38%||-3.17%||-2.76%|
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