ANZ Smart Choice Super Investor Update : Member Update Winter 2014
888 Investment insights Stewart Brentnall, ANZ Global Wealth Chief Investment Officer, provides his insights on recent market events as well as his outlook for the remainder of 2014. The search for yield, where investors seek out riskier assets in exchange for better income and overall returns, dominated markets in the June quarter. This saw most asset classes produce strong returns though assets such as listed property trusts, emerging market shares and the Australian dollar fared particularly well. Stimulatory monetary policies in the US, Europe and Japan helped in the search for yield as central bank actions, primarily the injection of money into the economies, saw bond yields fall (prices rise). Even in the US, where the US Federal Reserve (Fed) further slowed its asset purchases, it still provided more money into its economy. Moreover, a lack of concern over inflation helped send yields lower, driving bond returns higher. The active search for higher income returns also saw investors seek out riskier growth assets such as shares. The share rally was further driven by a rebound in US economic activity data after a weak weather-induced patch earlier in the year. Furthermore, Chinese activity indicators appeared to have found a base as the latest Purchasing Managers Index (PMI) rose, indicating somewhat faster economic growth. The Australian economy grew strongly in the June quarter, driven primarily by exports as the next phase of the commodity story took centre stage. Meanwhile, lower inflation and negative consumer reaction to the Commonwealth Budget saw expectations for rate rises by the Reserve Bank of Australia reduced. Market Watch video - June quarter Mark Rider, Head of Investment Strategy and Asset Allocation, explains how global financial markets have been driven by the search for higher income returns in the June quarter. Also, hear his insights on whether this will continue.
Member Update Spring 2014
Member Update Autumn 2014