Interest Rates and Markets
The focus in June was on interest rates, which outweighed profit growth as the main driver of market sentiment.
Asset Class Returns
Australian cash returned 1.82% for the month and nearly 14% over one year. Bonds performed strongly, with Australian bonds up 0.91% for the month and 8.62% over one year, while international bonds rose modestly.
Australian listed property gained 0.75% in June and delivered 13.81% over one year. International property returned 2.45% for the month and 18.58% for the year.
Australian shares were up 6.81% over one year, lagging behind international shares at 17.49%. Emerging markets showed solid annual growth at 12.42%.
Market Overviews
Returns were broad-based, with international property, global equities, and bonds performing particularly well. Australian equities delivered positive results but continued to underperform compared to global peers.
Takeaway
June saw strong performance across most asset classes, especially property and international markets. Interest rates remained the key factor influencing sentiment, and diversified investors benefited from having exposure to global equities and property.
