The listed property trust sector was far and away the top performer over key asset classes in July.
Listed property trusts returned 5.5 per cent for the month, however AUSBIL Partners chief investment officer Michael Wilson says the result comes on the back of several months of poor performance.
While listed property soared in July, concern over US interest rates continued to affect Australian and overseas equities. European equity markets had a case of the jitters. UK equities fell 1.4 per cent, Germany fell 5.1 per cent and France dropped 3.4 per cent. The S&P index in the US was down 3.2 per cent while Japan bucked the trend and rose 1.9 per cent.
However, while the markets were down, a fall in the dollar against the greenback, offset the weakness of markets to produce the positive international share returns.
Wilson forecasts continued volatility in equity markets around the world until there is a noticeable slowdown in US economic growth which may ease concerns over interest rates.
TABLE (IN COLOUR B’GROUND)
Asset ClassJuly 99 % return
International Bonds +0.1
Indexed Bonds +0.1
Australian Bonds +0.7
Australian Equities +1.8
International Equities +1.0
Direct Property +0.7
Listed Property Trusts +5.5
Cash (Bills) +0.4
Source: Ausbil Partners
