KEY THEMES FOR THE QUARTER
- Solid returns in Australia and other developed equity markets
- In a reversal of the previous quarter, emerging markets performed poorly
- Australian size and value premiums negative for the quarter; positive for the year
- Global value premium negative for the quarter and year; size positive for quarter
- Longer bond lagged shorter in quarter; but outperformed for year
- AUD fell versus USD in quarter; but gained against Euro and GBP
EAC STRATEGY REVIEW
Overall our EAC Strategy and Diversified Portfolios continue to reward our clients as shown in the Performance tables on page 3. If you have any questions or would like more information about our strategies and portfolios, please contact us.
GLOBAL MARKET SUMMARY
Financial headlines in the quarter were dominated by escalating trade tensions as the Trump administration threatened to raise tariffs against Chinese imports.
The World Trade Organisation warned that continued escalation in protectionist measures by the major economies posed a serious threat to growth and recovery in all countries.
International diplomacy was also a major media focus with the historic summit held in Singapore in June between US President Donald Trump and North Korean President Kim Jong Un.
In Australia, the financial media focused on ongoing repercussions from the Hayne Royal Commission into the financial services industry.