The InvestSMART Fixed Income Portfolio produced a return of 0.7% over the month ofJuly which was broadly in line with benchmark over the month and ahead of returns offered on cash deposits.
Looking forward we believe that volatility in fixed income bond markets is likely and that the yield to maturity of around than 2% is insufficient to compensate investors for that risk. This also materially contributes to the risk of fall short of the medium term objective of outperforming. With that in mind we have invested around half of the portfolio in cash and a managed fund that invests predominantly in floating rate corporate bonds. This means that the portfolio will deviate from the stated benchmark from one month to the next but over the next three years we expect it should achieve a higher return with less volatility.
Growth of $10,000
PERFORMANCE SUMMARY TO 31 JULY 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 22 December 2015.
|PERFORMANCE TO 31 JULY 2016||1 MONTH||3 MONTHS||6 MONTHS||SI* (P.A.)|
|InvestSMART Fixed Income Portfolio||0.69%||2.14%||3.33%||3.57%|
|Bloomberg AusBond Composite 0 Yr Index||0.74%||3.35%||4.47%||5.50%|
|Excess to Benchmark||-0.04%||-1.22%||-1.14%||-1.93%|
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