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InvestSMART Balanced Portfolio - September 2018

The InvestSMART Balanced Portfolio produced a return of 3.82% (after fees) during the September Quarter.
By · 12 Oct 2018
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12 Oct 2018 · 2 min read
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• The InvestSMART Balanced Portfolio produced a return of 3.82% (after fees) during the September Quarter.
• No changes were made to the portfolio during the September quarter
• Estimated yield on the portfolio is currently 2.95%
• Since inception the Balance portfolio has returned 6.52% per. annum (after fees)

The Vanguard MSCI index International Shares ETF (VGS) attributed 1.83% to the fund as US markets experienced their best quarter since the December quarter of 2013. VGS has a 63% exposure to US markets and the outlook remains robust for the world’s largest economy, as forward-looking economic indicators from the US have provided some of their strongest readings in two decades. International assets are also benefiting from the falling AUD.

The iShares Core S&P/ASX 200 (IOZ) attributed only 0.41% over the quarter as geo-political tensions (US-China trade wars) and the Banking Royal Commission also took their toll on the index. We expect the Australian market will underperform global peers again this coming quarter as bank funding increases and commodity prices moderate.

The Vanguard Australia Property Securities Index ETF (VAP) and iShares Core Composite Bond ETF added 0.23% and 0.11% respectively as Australian bond markets remained steadfast and property benefited from increase in rental yields .The Vanguard Global Aggregate Bond Index (Hedged) ETF (VBND) was the only part of the portfolio that contracted during the quarter, although it was very minor -0.06% and was due to the Federal Reserve increasing the Federal Funds rate in September.

Looking forward, our international equities holding is likely to remain the largest contributor to the portfolio. The outlook for the US in the final quarter is strong and it is highly likely that US markets will continue to outperform international peers.

Find out more about the InvestSMART Balanced Portfolio


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Evan Lucas
Evan Lucas
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