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InvestSMART Core Growth Portfolio - September 2018

The InvestSMART Core Growth Portfolio produced a return of 3.06% (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 Core Growth Portfolio produced a return of 3.06% (after fees) during the September Quarter.
• No changes were made to the portfolio during the September Quarter
• Estimated yield on the portfolio is currently 3.39%
• Since inception the Core Growth portfolio has returned 8.12% p.a. (after fees)

US markets had their best quarterly return since the fourth quarter of 2013 adding 7.8% in the three months to September. The Vanguard MSCI Index International Shares ETF (VGS) has a 63% exposure to US markets, and contributed 2.6% in overall returns during the quarter. Looking forward, US markets have started the fourth quarter with strength and forward-looking economic indicators from the US have lodged some of their strongest readings in two decades. We expect the international side of the portfolio to continue to outperform in the coming quarter, assisted by further declines in the AUD.

The iShares Core S&P/ASX 200 (IOZ) added 0.54% over the September quarter. IOZ was impacted by several market events including: full-year reporting season in August, ex-dividend trading in September, geopolitical risks to Australia closest trading partners (US-China trade wars) and the Banking Royal Commission.

The outlook for the final quarter of the year is likely to be impacted by increasing global oil prices which have risen 20% year-to-date. US bond yields will continue to climb as the US Federal Reserve looks to increase its cash rate a further 25 basis points in December which will impact risk investment and sentiment.

Find out more about the InvestSMART Core Growth Portfolio


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Evan Lucas
Evan Lucas
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