Australian Interest Rates
The RBA cut interest rates again, continuing its easing cycle to support economic growth.
Asset Class Returns
Cash returned 3.28% for the month. Australian bonds fell slightly over the month but remain modestly positive over one year. International bonds were flat to negative short-term, with only small gains over the year.
Australian listed property delivered strong results, with double-digit growth over one month and the year. Global property also achieved solid annual returns.
Australian shares posted steady growth, though below international peers. International shares were a standout, delivering 17.49% over the year. Emerging markets performed even stronger, up 18.85% over the year.
Market Overviews
International and emerging market equities have been the strongest performers. Australian equities continue to grow but remain behind global peers. Property, both local and international, has been a robust contributor to portfolios over the past year. Bonds remain subdued, with flat or negative returns in the short term, but modestly positive results over the longer term.
Takeaway
Falling Australian interest rates are supportive of equities and property markets. Global and emerging markets are leading in performance, while bonds remain lacklustre. Diversified investors have benefited most from exposure to international shares and real assets.
