ANZ Smart Choice Super Investor Update : Member Update Autumn 2015
777 What’s next? Looking ahead, we expect the stronger USD of recent months to play an important role in helping to balance global growth via an increase in US imports. Weaker currencies elsewhere, particularly Europe and Japan, will help support a recovery in growth and profits for the more troubled economies outside the US. The likelihood that interest rates will stay low for some time suggests that growth assets are likely to remain in favour. More specifically, More stable oil prices benefited commodity producing nations, particularly Russia, which rebounded to return 16.4% in the quarter following recent weakness. At the same time, lowered commodity prices were a boost for consuming nations in Asia as they are large importers. Fixed income Overall it was a sound quarter for fixed income. Australian fixed income returned around 2.7% and the Global fixed income index 2.6%. The combination of increased stimulus by a range of central banks (including the Reserve Bank of Australia) and low inflation saw a broad based rally in government bond yields as markets factored in interest rates remaining lower for even longer. Listed property Global listed property again performed well, rising 6.5% again as investors continued to search for higher income generating (yielding) assets against a backdrop of lower interest rates for longer. Currency The US dollar (USD) has seen a continued strong increase, especially versus the weakening Euro. The AUD also fell by 6.9% to USD 0.76c on the back of falling commodity prices and expectations for further cuts in interest rates. global developed market shares are likely to outperform Australian and New Zealand shares. This reflects the strength of the US economy and the impact of the stimulus measures in Europe and Japan, as well as relatively favourable valuations. While most of the strengthening in the USD is probably behind us, the potential for further weakening in the AUD may continue to support returns for investors in global shares through holding overseas shares mainly unhedged.
Member Update Summer 2015
Member Update Winter 2015