Local bias rewards investors
Australian investors are being rewarded for their attraction to domestic equities, according to a new analysis released by PennyWise Investments.
The latest PennyWise Investments Assetmax ETF report said the reward for sticking close to home had been that the ASX200 had outperformed global markets in recent months, rising 5.9 per cent in September, compared to only 2.9 per cent for the world MSCI equity index benchmark.
PennyWise Investment founder and managing director David Bassanese said investors needed to be aware that international exchange traded funds (ETFs) listed on the Australian market were priced in Australian dollars, meaning local investors bore the currency risk of the foreign markets they invested in.
He said Australia’s ability to dodge recession had impressed the world, driving up the Australian dollar and allowing local stocks to outperform their global peers.
“And with local interest rates expected to increase again in coming months, it's likely the Australian dollar will rise further,” Bassanese said.
Recommended for you
AFCA has confirmed United Global Capital’s membership of the body will not be extended to accept further complaints, avoiding a repeat of the Dixon Advisory scenario.
Three of Australia’s largest financial advice groups have shared their thoughts with Money Management on whether they would include crypto on their approved product lists.
Shadow treasurer Angus Taylor has vowed to introduce a bill to legislate a raft of financial services reforms if the Coalition is elected.
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.