Diversified Portfolios - InvestSMART International Equities - 30 September 2016

InvestSMART International Equities September Report
By · 1 Oct 2016
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1 Oct 2016
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Global equity markets were down for the month of September after posting solid gains since June. There is plenty of short-term news flow at the moment that has the potential to sway markets (US election, monetary policy from the US Fed, ECB and Japan, what's next for Brexit, European banks), however we remain focused on valuations and how they may play out over the long-term. As such we remain underweight to the US and continue to have a minor overweight to Europe and sizeable allocation to Emerging markets (which are absent from the benchmark).

The portolio's return relative to the benchmark for the period has been impacted by a mis-match between the last traded price of the ETFs and their underlying benchmarks, this tends to happen from time-to-time and tends to correct itself in due course. The portfolio's exposure to emerging markets contributed positively as did the underweight to the US over the month.

During September we removed iShares Europe ETF (IEU) and iShares MSCI Emerging Market ETF (IEM) and replaced them with the Vanguard FTSE Europe Shares ETF (VEQ) and the Vanguard FTSE Emerging Markets ETF (VGE) respectively. The switch was predominately due to the lower fee structure of the Vanguard ETFs.



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.

Growth of $10,000

Income Reinvested


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.


InvestSMART International Equities Portfolio -2.23% 2.81% 5.40% 2.28% 9.69%
MSCI World ex Australia NR AUD Index -1.32% 1.95% 6.41% 1.95% 11.82%
Excess to Benchmark -0.91% 0.85% -1.01% 0.33% -2.13%

Important Information

While every care has been taken in preparation of this document, InvestSMART Financial Services 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 the purpose of providing general information, without taking 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 see 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 for InvestSMART by InvestSense Pty Ltd ABN 31 601 876 528, Authorised Representative of Sentry Asset Management Pty Ltd AFSL 408 800. Financial commentary contained within this report is provided by InvestSense Pty Ltd. 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 making a decision to invest in this product. The information in this report is general information only and does not take into account 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 and InvestSense Pty Ltd 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, InvestSense Pty Ltd 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, Approved Product List 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. InvestSense Pty Ltd 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. InvestSense Pty Ltd, 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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