Australian equities shine in June
Australian equities was the place to be in June, as the S&P/ ASX 300 rocketed 8 per cent over the month.
Australian equities was the place to be in June, as the S&P/ ASX 300 rocketed 8 per cent over the month.
A recovery in equity markets worldwide pushed up the benchmark domestic share index as well as the key US indicators. The Nasdaq index was the month’s top per-former, rising 16.6 per cent over the month, while a number of Asian markets posted double digit returns for the month. However, a stronger Australian dollar hurt international investments, with the sector falling 1.9 per cent in Australian dollar terms.
Listed property trusts performed well for the month, gaining 2.3 per cent while domestic and overseas bond markets also were kind to investors posting returns of 1.1 per cent and 1.9 per cent respectively.
Ausbil Dexia chief investment officer Michael Wilson says the average pooled su-perannuation fund will book a return of about 12.3 per cent for last financial year, while this year the group expects the average to shrink to about 6 per cent.
“We are looking to a soft landing for the global economy which, while lowering economic activity, should still produce a positive return,” he says.
Wilson says Australian equities will be a solid performer in the year ahead.
AUTHOR
Recommended for you
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.
A potential acquisition of Platinum Asset Management by Regal Partners will be beneficial for the “challenged” fund manager, believes Morningstar, but it has warned fund management mergers don’t always run smoothly.
Fund managers made a “big shift” into bond-sensitive sectors like utilities in September and away from cyclicals, while risk appetite is at an 11-month low.
Ahead of the RBA’s upcoming monetary policy meeting next week, BlackRock Australasia has reaffirmed the market’s view that rate cuts are likely out of the picture for 2024.
