InvestSMART Performance Update: January 2024

The InvestSMART diversified ETF portfolios returned between 14.4% and 7.2% and the InvestSMART Single Asset Class Portfolios returned between 20.9% - 3.5% to the 12 months ending 31 January 2024. 

January wrap up

The first month of the year was positive for Australian and global shares, and for bonds. This happened for several reasons. Investors continue to be buoyed by the outperformance of share markets at the end of 2023. Inflation figures fell again, and all indicators point to a ‘soft landing’ aka recession avoidance. In Australia the annual consumer price index inflation was 4.1%, down for the fourth consecutive quarter. In short, the economy is looking reasonable for 2024.   

With this generally positive outlook it’s worth revisiting the concept of asset allocation when you invest. During positive times investors (of all levels of experience) tend to herd into higher return growth investments like shares and do the opposite during downtimes, moving into bonds or cash; asset allocation and long-term strategy becoming a distant thought.  

We’ve written a lot about not chasing market returns and the emotions of investing. Knowing and understanding your asset allocation in your portfolio can be helpful during times of temptation to buy up big or sell it all down. 

InvestSMART’s five diversified ETF portfolios are designed around asset allocation. They range from conservative asset allocation ie: more defensive assets like bonds, to high growth asset allocation, ie: more growth assets like shares. 

You can read more about how InvestSMART approaches asset allocation and dive deeper into the portfolio performance report here.