The InvestSMART International Equity Portfolio posted another positive month, up1.4%, marginally outperforming the index. Emerging market equities were the stand out performer amongst the different regions, returning 3.7% for the month. Developed market equities returned 1.3$ for the month with Japanese and European equities performing slightly better than US equities.
The underweight to the US is based on the view that US valuations look expensive relative to other parts of the world and relative to their own history.
The portfolio continues to be positioned with an underweight to US equities and holds an exposure to emerging markets (which is absent from the benchmark).Therefore, the portfolio is expected to perform well in an environment where non-USequites perform better than US equities.
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 31 AUGUST 2016||1 MONTH||3 MONTH||6 MONTH||1 YEAR||SI* (P.A.)|
|InvestSMART International Equities Portfolio||1.38%||0.44%||8.75%||2.01%||11.48%|
|MSCI World ex Australia NR AUD Index||1.29%||-0.64%||6.76%||0.46%||13.19%|
|Excess to Benchmark||0.09%||1.08%||1.99%||1.55%||-1.71%|
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