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.

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

While every care has been taken in preparation of this document, InvestSMART Financial Services Pty Limited (ABN 70 089 038 531, AFSL 226435) (“InvestSMART”) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for providing general information, without taking into account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. This document has been prepared by InvestSMART. The information contained in this document is not intended to be a definitive statement on the subject matter nor an endorsement that this model portfolio is appropriate for you and should not be relied upon in deciding to invest in this product. The information in this report is general information only and does not consider your individual objectives, financial situation, needs or circumstances. No representations or warranties express or implied, are made as to the accuracy or completeness of the information, opinions and conclusions contained in this report. In preparing this report, InvestSMART has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us. To the maximum extent permitted by law, neither InvestSMART, or their directors, employees or agents accept any liability for any loss arising in relation to this report. The suitability of the investment product to your needs depends on your individual circumstances and objectives and should be discussed with your Adviser. Potential investors must read the PDS, Investment Menu and FSG along with any accompanying materials. Investment in securities and other financial products involves risk. An investment in a financial product may have the potential for capital growth and income, but may also carry the risk that the total return on the investment may be less than the amount contributed directly by the investor. Past performance of financial products is not a reliable indicator of future performance. InvestSMART does not assure nor guarantee the performance of any financial products offered. Information, opinions, historical performance, calculations or assessments of performance of financial products or markets rely on assumptions about tax, reinvestment, market performance, liquidity and other factors that will be important and may fluctuate over time. InvestSMART Financial Services Limited, its associates and their respective directors and other staff each declare that they may, from time to time, hold interests in Securities that are contained in this investment product.

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