Each month we release the Market Wrap that is compiled by our Chief Investment Office (CIO). Please call us to discuss any points which you find of interest!
Global shares maintain momentum
- Talk surrounding Donald Trump’s proposed tax reforms and solid economic data more than offset concerns about North Korea, the US Federal Reserve announcing that they will commence to trim their balance sheet and likely lift rates again this year.
- In Europe Angela Merkel was returned as Chancellor in the German elections, albeit with a reduced majority. News headlines emphasised potential uncertainty following the less than resounding result but markets focussed on the health of the German economy and European share and bond markets held up well.
- Despite these uncertainties global shares continued to perform strongly, particularly developed market shares, and bonds corrected lower.
- Australian shares continued to underperform global shares and the AUD slipped from recent highs.
- Australian economic data was quite positive with GPD growth solid, employment lifting and business confidence survey data elevated.
- The RBA remained upbeat but left the cash rate unchanged at 1.50%.
Major asset class performance (%)
| Asset classes | 1 month | 12 months | 5 years (p.a.) |
| Australian Shares | 0.0 | 9.0 | 9.9 |
| Global Shares (hedged) | 2.5 | 19.6 | 15.0 |
| Global Shares (unhedged) | 3.4 | 15.4 | 17.7 |
| Global Emerging Markets (unhedged) | 0.7 | 19.4 | 10.0 |
| Global Small Companies (unhedged) | 5.2 | 17.1 | 19.7 |
| Global Listed Property | -0.2 | 0.1 | 10.6 |
| Cash | 0.1 | 1.8 | 2.4 |
| Australian Fixed Income | -0.3 | -0.7 | 3.9 |
| International Fixed Income | -0.4 | 0.5 | 5.1 |
| Source: JP Morgan & ANZ Wealth, 30 September 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. |
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Currency
| Exchange rates | At close on 30/09 | % change 1 month | % change 12 months |
| AUD/USD | 0.78 | -0.9 | 2.2 |
| AUD/euro | 0.66 | -0.3 | -2.7 |
| AUD/yen | 88.1 | 1.1 | 13.6 |
| Trade weighted index | 66.2 | -0.9 | 3.6 |
| Source: Bloomberg & ANZ Wealth, 30 September 2017. All foreign exchange rates are rounded to two decimal places where appropriate.
Please note: Past performance is not indicative of future performance. |
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Disclaimer: This information is current as at 5 October 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.