Diversified Portfolios - International Equities Portfolio Report - 30 November 2016
Global equity markets were generally up across most of the major markets. The US surprisingly performed particularly strongly on the back of Trump's win in the US presidential election on the basis that tax cuts and other stimulatory measures may prove to be inflationary. Small cap (in particular US small caps) was the best performing asset class for the month, up 7.3%. The US was up 6.7%, while Europe and Japan returned 0.8% and 0.5% respectively. Emerging markets was the worst performing region, returning -1.7%. The portfolios remain 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 2.3% over the month of November versus the benchmark return of 4.5%. Since inception the portfolio lags the benchmark return by around 3.3%, 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. Since the start of this year, the relative performance of the US and emerging markets has reversed, however the past month 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
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 30 NOVEMBER 2016||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|InvestSMART International Equities Portfolio||2.27%||-0.69%||-0.39%||-1.19%||9.13%|
|MSCI World ex Australia NR AUD Index||4.50%||1.70%||1.06%||0.94%||12.44%|
|Excess to Benchmark||-2.23%||-2.39%||-1.45%||-2.13%||-3.31%|
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