ANZ Smart Choice Super Investor Update : Member Update Autumn 2013
6 were weighed down by political uncertainty most recently around the bailout in Cyprus. Emerging markets in Asia rallied on news of stronger growth in China. Australian fixed interest The returns from Australian Government bonds were limited by the strong demand from overseas central banks looking to diversify their own bond portfolios. As a result there was stronger demand for corporate credit which offers higher returns. International fixed interest Ongoing intervention by US and UK central banks kept their government bond yields low. Surprisingly, demand for bonds in troubled European bond markets broadly held up despite events in Cyprus Currency The depreciation of the US dollar, Euro and Japanese Yen in the quarter kept the Australian dollar at its historically high level. To date, interest rate cuts here in Australia have spiked confidence, but had little impact on the exchange rate. We believe the Australian dollar is over-valued. Listed Property The ongoing demand for investments that offer good yield potential helped sustain listed property values both here in Australia and globally. Commodities The price of key commodities like Gold and Copper came under pressure in the quarter – a trend that is likely to continue until stronger evidence of a sustained global recovery emerges. What’s on the radar? Markets will closely watch the ‘Big 2’ - US and China - who largely power the global economy. Because China’s growth underpins demand for Australian resources, it is also important for our share market. Given Europe’s fragile political climate, there will be intense focus on the September election in Germany, just as there will be in Australia before we go to the polls. At home, companies that pay high dividends such as banks will continue to be supported. In relation to interest rates, we believe rates are still more likely to fall than rise during 2013.
Investor Update 2012
Member Update Winter 2013