InvestSMART

InvestSMART portfolio performance for the month of August

We are big believers in diversification, investing for total returns and long-term investing.
By · 8 Sep 2021
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8 Sep 2021 · 5 min read
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 It is the mantra of the InvestSMART Diversified and Single Asset Class Portfolios and we point to these because:

  • we know they work,
  • we know they are in investors best interest,
  • and we know that your long-term returns will benefit.

Part of why we use these strategies is so we can capture the returns markets give us across all asset classes. And the month of August was another pleasing month for the InvestSMART portfolios.

Our core Australian equities holding in all InvestSMART diversified portfolios is the iShares ASX 200 ETF (IOZ) and over August this holding captured the following:

  • Record all-time high in the ASX 200 of 7632.8

  • The 11th consecutive month of rising markets – the previous record was 10 months in 2006-2007. Something IOZ has taken full advantage of.

  • Record all time high dividend payouts from ASX 200 companies which is passed through for the benefit of IOZ investors.

ASX 200 companies delivered a record all time high dividend in August. The August to-date dividend total is over $31 billion. The previous record was in 2019 when companies returned $27.4 billion in dividends. This will be paid to shareholders (which includes InvestSMART Diversified Portfolio investors) in September and October.

If we then think about that amount of money being reinvested back into the ASX 200 two things become clear.

  1. It should support the equity markets as people will reinvest most of the $31 billion in this low interest rate environment

  2. The compounding effect from reinvesting means over time they should outperform those that don't reinvest.

If we look at our international equities holdings – the Vanguard MSCI Index of International Share (VGS) and the iShares S&P 500 (IVV) – August was as impressive.

VGS added 3.9 per cent in August while IVV added 4.5 per cent. International equities have outperformed domestic peers for the past 10 years. It is why they are in all our diversified portfolios and form a central part of our diversification strategy.

August was a month of records and confirmed our strategy is working continues to capture the performance you expect.

Conservative 

Balanced

Growth

High Growth

International Equities

Interest Income

Property and Infrastructure

Hybrids 

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Evan Lucas
Evan Lucas
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