International equity markets are yet to recover their losses experienced since the start of the year (-3.6% since December) but rebounded 2.4% during April. Emerging market equities were up 1.4% in April and up 1.3% for the year to April, performing better than their developed market counterparts since the start of the year. Regionally, Japan ( 5.5%) and Europe (3.4%) were the standout performers, while US equities returned 1.3% for the month of April.
The InvestSMART International Equities Portfolio returned 1.5% 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 returned 0.9% which dragged on performance while the iShares Core S&P Midcap ETF returned 1.9%. The Vanguard All-World ex US Shares Index ETF and iShares Europe ETF returned 1.9% and 2.8% respectively. The MSCI Emerging Markets ETF was up for the month returning 0.7% 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 30 APRIL 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 30 APRIL 2016||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|InvestSMART International Equities Portfolio||1.49%||2.83%||-8.04%||-2.99%||9.79%|
|MSCI World ex Australia NR AUD Index||2.36%||-0.38%||-7.73%||-0.81%||12.42%|
|Excess to Benchmark||-0.86%||3.21%||-0.31%||-2.19%||-2.63%|
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