Falling dollar saves international investors
The poor run of the Australian dollar has been a saving grace for investors in over-seas share funds, with the falling dollar balancing a 5.4 per cent drop in the MSCI world index.
The poor run of the Australian dollar has been a saving grace for investors in over-seas share funds, with the falling dollar balancing a 5.4 per cent drop in the MSCI world index.
According to Ausbil Dexia, international portfolios using Australian dollars rose 1 per cent in September, thanks to a 5.9 per cent in the value of the Australian dollar compared to the US dollar.
Share markets around the world had a woeful September. The S&P Index in the US fell 5.3 per cent while the Nasdaq lost 12.6 per cent. Performance was equally bad in Europe with the UK bourse dropping 5.7 per cent over the month and the German share index shedding 5.8 per cent.
Asia was worse still. Korea lost 10.9 per cent, Japan fell 6.6 per cent and Taiwan plummeted 20.4 per cent.
Despite the carnage on overseas investment markets, most Australian markets had a subdued September. Domestic bonds, shares and direct property rose between 0.7 and 1.0 per cent. The only sector Australian investors lost in over the month was in listed property trusts, which cooled 0.3 per cent after strong performance earlier in the year.
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