Global unhedged and hedged shares had a poor month. As expected, unhedged outperformed hedged in a “risk-off” environment, helped by a depreciation in the Australian dollar. Aussie shares and particularly small cap stocks were hit hard during June.
It was another difficult month for the asset class with hedged and unhedged declines, although some markets were able to eke out gains. Aussie shares were sharply lower for the month — small caps were the laggard.
Australian Equities perform well with all GICS sectors positive. Global shares had a mixed month, Australian shares performed well and the AUD$ gained against the USD$ but fixed income returns for the month were again exceptionally poor.
Global shares fell, Australian shares performed reasonably well during February, fixed income returns for the month were again very poor and the Australian dollar gained against the US dollar, which basically offset last month’s loss.
Recent GDP figures showed economic growth contracting in the September quarter as expected given the COVID19 restrictions imposed, however, going forward leading indicators suggest the economy is continuing to bounce back strongly.