Market Insights
Fund Update
The Fund returned 0.58% over the month of February, delivered 1.99% for the previous three months and 8.99% over the past 12 months. The Net Asset Value (NAV) of the Fund, as at 28 February 2015, was $57.12m 2 and the redemption price was 1.363240 3. February saw the... Read more...Market Commentary 10 March 2015
Read more...Tweaking our rate view
We are changing our view about likely RBA cash rate moves taking account of the RBA’s decision to leave the cash rate unchanged at its early March policy meeting, and more particularly, the information in the statement accompanying the decision. We now forecast that the most likely trajectory for the cash rate is another 25bps cash rate cut to 2.00% at the early May policy and another 25bps cut to 1.75% at the August policy meeting. Beyond that, we see a lengthy pause through to August 2016 when we tentatively foresee the start of a cautious policy tightening phase although, much will depend at that stage on whether the economy is showing consistent signs of stronger economic growth.
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Read more...Market Drivers
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Risk Assets were much stronger in February as a bounce higher in international oil prices was taken as a sign that prospects for global economic growth were not as weak as feared back in January. At the same time, several central banks showed that they were prepared to adopt easier policies aimed at providing some insurance to support economic growth. The Reserve Bank (RBA) was among this group and after leaving the cash rate unchanged for 18 months decided to cut by 25bps to a record low 2.25% in February. A less dire economic outlook and monetary policy support underpinned share buying around the world. European sharemarkets were especially strong with the Eurostoxx 50 index up by 7.4% in the month. Very strong gains were also recorded by Japan’s Nikkei, up 6.4%, Australia’s ASX 200, up 6.1%, and the US S&P 500, up 5.5%.
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