Each month we release the Market Wrap that is compiled by our Chief Investment Office (CIO). Please do not hesitate to contact your adviser to discuss any points which you find of interest!

Positive notes

  • Share markets rose during the month, following ongoing stability across the global economy and some recovery in investor sentiment.
  • Bond yields fell (prices rose) as several key production surveys softened in the US with some early indication of a peak in economic data momentum and commodity prices.
  • Credit spreads continued to benefit from easy financial conditions and strong investor appetite.
  • The US dollar (USD) gained against major cross rates alongside the yen while the Australian dollar (AUD) fell as commodity prices declined.
  • Emerging market shares and bonds performed well despite rising tensions on the Korean Peninsula. Most markets in the region have continued to benefit from the broad-based recovery in Chinese industrial activity.
  • Economic growth surprised to the upside in China as GDP growth came in at 6.9% (year on year) in Q1. The housing market remains stable but authorities continued to crack down on financial risks by limiting credit growth in certain pockets of the financial system.
  • Australian economic indicators are generally stable. Headline inflation bounced in Q1 as business conditions remained strong. That said, consumer spending has remained soft which is likely to see the RBA keeping rates on hold.

 

Major asset class performance (%)

Asset classes 1 month 12 months 5 years (p.a.)
Australian Shares 1.0 17.5 10.8
Global Shares (hedged) 1.3 19.2 14.4
Global Shares (unhedged) 3.6 16.9 17.7
Global Emerging Markets (unhedged) 4.2 21.6 8.4
Global Small Companies (unhedged) 4.2 20.0 19.2
Global Listed Property 0.5 4.7 11.0
Cash 0.1 1.9 2.6
Australian Fixed Income 0.8 2.6 4.9
International Fixed Income 0.7 2.6 5.8
Source: JP Morgan & ANZ Wealth, 30 April 2017.

Indices: Australian Shares – S&P / ASX300 Accumulation, Global Shares (hedged/unhedged) – MSCI World ex Australia, Global Emerging Markets – MSCI Emerging Free Net in AUD (unhedged), Global Small Companies (unhedged) – MSCI World Small Cap ex Australia, Global Listed Property – FTSE EPRA/NAREIT Developed Rental Index ex Australia (hedged), Cash – Bloomberg Bank Bill, Australian Fixed Income – Bloomberg Composite Bond All Maturities, International Fixed Income – Barclays Global Aggregate Bond Index (hedged).

Please note: Past performance is not indicative of future performance.

 

 

Currency

 

Exchange rates At close on 30/4 % change 1 month % change 12 months
AUD/USD 0.75 -0.8 0.0
AUD/euro 0.69 -4.0 5.6
AUD/yen 83.52 -1.7 4.7
Trade weighted index 64.5 -2.6 2.5
 

Source: Bloomberg & ANZ Wealth, 30 April 2017. All foreign exchange rates are rounded to two decimal places.

Please note: Past performance is not indicative of future performance.

 

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Disclaimer: This information is current as at 4 May 2017 but is subject to change. This information is issued by OnePath Funds Management Limited (OFM) ABN 21 003 002 800 AFSL 238342. OFM is a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 but is not a bank. The information is general in nature and does not take into account a potential investor’s personal needs, objectives and financial circumstances. This information is not to be construed as investment or financial product advice, and should not be relied upon as a substitute for professional advice. Before acting on this information, potential investors should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Potential investors should read the relevant Product Disclosure Statement (PDS) available at onepath.com.au and consider whether the particular product is right for them. Although all the information in this document is obtained in good faith from sources believed to be reliable no representation of warranty, express or implied is made as to its accuracy or completeness. Whilst care has been taken in preparing this material, ANZ and its related entities do not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. To the extent permitted by law, ANZ and its related entities do not accept any liability from the use of the information. Past performance is not indicative of future performance. The value of investments may rise or fall and the repayment of subscribed capital is not guaranteed. RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429.