Disclosure on Historical Performance of QuietGrowth Portfolios
The graph of the “Historical Performance of QuietGrowth Portfolios” depicts the probable performance of $10,000 invested 10 years ago in different QuietGrowth Portfolios. We currently offer five different QuietGrowth Portfolios, each having five different risk tolerances ranging from 1/5 to 5/5. The graph is for demonstration purpose only.
The five QuietGrowth Portfolios consist of various ETFs, and in practice, a small amount of cash. For the historical performance calculations, we consider that the entire amount allotted to a Portfolio is invested in ETFs.
QuietGrowth has been managing the money of the clients since August 2015. To enable us to show the historical returns of QuietGrowth Portfolios prior to August 2015, we have applied the backtesting practice. The backtested returns of the Portfolios prior to that date is as per the composition of the Portfolios on that date. If an ETF does not exist for a certain section of the backtested period, then suitable benchmark data is used as a proxy. Underlying ETF fees are included in the prices of the ETFs for the times those ETFs exist. For any benchmark data used as a proxy during certain sections of the backtested period, no tentative underlying ETF fees, that might have been incurred, is considered.
Actual performance of your QuietGrowth Portfolio might vary due to the timing of your deposits or withdrawals, the size of each of your deposits or withdrawals, the exact time at which the buy or sell trades are executed, any rebalancing of your Portfolio, and other factors. QuietGrowth fee that might be incurred by the client is not considered in the calculations of historical performance.
The various benchmarks that we have considered are:
- Australian shares: S&P/ASX 300.
- Australian dividend shares: S&P/ASX Dividend Opportunities Index.
- US shares: Vanguard Total Stock Market ETF (VTI) converted to AUD. VTI is currently benchmarked against CRSP US Total Market Index.
- Europe shares: S&P Europe 350 Total Return converted to AUD.
- Japan shares: iShares MSCI Japan ETF (IJP) which is benchmarked against MSCI Japan Index. Prior to October 10, 2007, the reference is iShares MSCI Japan ETF (EWJ) converted to AUD, which is also benchmarked against MSCI Japan Index.
- Emerging markets: Vanguard FTSE Emerging Markets ETF (VWO) converted to AUD. VWO is currently benchmarked against FTSE Emerging Index.
- Australian bonds: Vanguard Australian Fixed Interest ETF (VAF) which is benchmarked against Bloomberg AusBond Composite 0+ Yr Index. Prior to December 5, 2012, the reference is Vanguard Australian Fixed Interest Index Fund, which is also benchmarked against Bloomberg AusBond Composite 0+Yr Index.
- Natural Resources: ETF Securities Physical Gold ETF
Note: Since 1 July 2008, USD, EUR and JPY figures are converted to AUD using WM/Reuters exchange rates taken at 4pm Sydney time. Prior to that, the exchange rates are as provided by the Reserve Bank of Australia.