Diversified Portfolio - International Equities - 31 July 2016

COMMENTARY

PORTFOLIO COMMENTARY

The InvestSMART International Equity Portfolio had a strong month, up 3.7%, as markets enjoyed a post-Brexit rally during July with the broader international equity markets up 2.0%. Emerging market equities returned 2.9% for the month outperforming their developed market counterparts over the month. US equities returned 1.7% for the month which underperformed relative to Europe, Japan and emerging markets. Given the portfolio is underweight the US this was the main reason for outperformance over the month.

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-US equites perform better than US equities.

PORTFOLIO OBJECTIVE

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

Income Reinvested

PERFORMANCE SUMMARY TO 31 JULY 2016

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.

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.

Important Information

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