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.
Global shares fell in unhedged and hedged terms but global emerging markets rose over the month. Australian shares performed poorly during January. The leading sectors were Energy and Utilities with IT being the worst-performing sector for the month. Fixed income returns for the month were also poor. The $AUD lost against the $USD and the Yen.
Global shares rose and with that Australian shares performed reasonably well during December. Fixed income returns ended the month fairly flat but the Australian dollar rose against the USD$ and the Yen.
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.
Aussie shares outperformed global shares, falling 1.9% in September. Mining underperformance as investors reacted to selloff in iron ore prices. Fixed income returns also poor. The AUD$ fell against major currencies incl US$. Concerns over China amidst the unravelling of Evergrande weighed on AUD$ support.
