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. You may access this graph in the Investment Interactives webpage.

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 deposited to a Portfolio is invested in ETFs
  • we assume that distributions (e.g. dividends) are reinvested, and
  • we do not take into account any taxes payable by the client.

QuietGrowth has been managing the money of the clients since October 2015, the date of inception of the investment management service of the firm. To enable us to show the historical returns of QuietGrowth Portfolios prior to 1 October 2015, we have simulated the historical returns based on the performance of each ETF or the corresponding benchmark data. The simulated returns of the Portfolios prior to the date of inception are as per the composition of the Portfolios on the date of inception. If an ETF does not exist for a specific section of the simulated 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 in the day at which the buy or sell trades are executed,
  • any rebalancing of your Portfolio,
  • the cash present in your Portfolio,
  • the drift of your Portfolio,
  • buy-ask spreads, and
  • other factors.

QuietGrowth fee that might be incurred by the client is not considered in the calculations of historical performance.

The brokerage or commission charged by executing brokers while buying or selling ETFs is considered as zero. This is because QuietGrowth ensures that the executing broker does not charge such brokerage or commission to QuietGrowth clients.

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: Global X 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.

Investments can go up and down. Past performance is not necessarily indicative of future performance. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in loss. Read more in our Full Disclosure.