Diversified Portfolios - InvestSMART International Equities - 30 September 2016
InvestSMART International Equities September Report
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
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 SEPTEMBER 2016||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|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%|
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