Introduction

Quarterly Market Review

Financial headlines were dominated in the quarter by an upsurge in market volatility after a period of relative calm. Media attributed the volatility to various causes, including protectionist pressures in the US, rising bond yields and greater regulatory scrutiny of the high-flying technology sector.

Quarterly Market Review

KEY THEMES FOR THE QUARTER

  • Emerging markets were the standout in mixed global equity returns
  • Developed markets positive; Australia negative
  • Value premium positive in emerging markets; negative elsewhere
  • Size premium positive in developed markets; negative in emerging
  • Profitability premium positive in developed and emerging
  • REIT’s and utilities lag broader equity markets
  • Negative term, credit premiums in fixed interest

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