Diversified Portfolios - InvestSMART Income - 31 March 2017

InvestSMART Income Portfolio March Report

Australian equity markets were buoyant throughout the March quarter.

The S&P/ASX 200 index rose 3.5%, with banking stocks the best performers. Resource companies also performed well, boosted by financial results that benefited from a dramatic increase in commodity prices (especially for iron ore and coal) in the latter half of calendar year 2016.

Capital management was a common theme, with several companies (such as AMP, QBE and Coca-Cola Amatil) announcing buybacks. Company outlook statements were mostly positive, though cautious.

There are plenty of reasons for investors to be cautious too, with the ASX pricing in benign conditions despite geopolitical tensions rising in North Korea and Syria. The portfolio does not have any exposure to international equities, but Australian stocks will no doubt suffer if conditions deteriorate.

The main positive contributor was the iShares Core S&P/ASX 200 ETF, which was up 3.9%, reflecting the strength of the Australian market during the quarter. The Macquarie Income Opportunities Fund and the iShares Core Composite Bond ETF also managed gains, of 1.0% and 0.6% respectively.

The key detractor from the performance was the Vanguard Australian Property Securities Index ETF, which fell 1.2% through the quarter.

PERFORMANCE TO 31 MARCH 20171 MONTH3 MONTH6 MONTH1 YEARSI* (P.A.)
InvestSMART Income Portfolio 1.41% 2.09% 2.50% 7.85% 4.89%
Morningstar Multisector Moderate Index 0.82% 1.31% 1.60% 5.94% 4.71%
Excess to Benchmark 0.59% 0.77% 0.89% 1.91% 0.18%
RBA Cash Rate 1% 0.21% 0.62% 1.25% 2.64% 2.91%
Excess to Objective 1.20% 1.47% 1.24% 5.22% 1.98%

 

Source: Praemium, RBA. Returns are after investment fees and admin fees. Returns are shown as annualised if the period is over 1 year. * Since Inception (SI) date is 29 December 2014.

 

Important Information

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