Bonds down as equities stage come back
Australian equities were the stand-out performer when compared to other asset classes in the month of October, after theS&P200/ASXfinished up 3.2 per cent.
International equities also fared well over the month, with a return of 2.6 per cent, although returns were damaged by the continuing rise of the Australian dollar.
The property sector also finished in positive territory, with listed property trusts finishing up 2.4 per cent and direct property up 0.7 per cent.
Funds managerAusbil Dexiasays the only negative asset class was bond markets which folded before the prospect of a strengthening global economy to be down 0.9 per cent.
However, the manager says there is evidence of renewed confidence in bonds, with expectations for yields to rise further with rising Australian cash rates.
Ausbil Dexia chief economist John Honan says strength of the local sharemarket would lift the average superannuation manager’s return by 1.7 per cent for the month, meaning the average balanced fund’s return for the first four months of the financial year would be around 5 per cent.
The manager says the rally for October was a result of a strong domestic economy, an increase in corporate takeover and merger activity and solid third quarter US profit results.
Global equity markets were also positive over the month, with Honan saying these market improvements were positive for continued domestic growth, reflecting growing confidence in the global economic recovery.
Recommended for you
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
UK-based fund manager Royal London Asset Management has appointed a Sydney-based head of regional sales as it embarks on a multiyear plan to expand its presence internationally.
