The Australian dollar have proven stubbornly resilient in recent months, raising doubts about my year-end call that it would fall to US65c. That said, a number of forces appear to be now conspiring to push the little Aussie battler lower in the months ahead.
In the past 3 years international equities ETFs available on the ASX have attracted ~$6 billion from Australian investors – with net inflows into this category growing 40% year on year since 2013. As part of continued product innovation in the Australian industry, a number of ‘currency hedged’ ETFs have now been launched. Here are 3 things to know about currency hedging over equities investments:
This 4 minute interview can be seen here.
In light of the fact that the S&P 500 reached new record highs last week, this note re-visits the issue of United States equity market valuations. As will be shown, although low interest rates are offering some support to equity market valuations, the market still appears expensive once allowance is also made for an apparent rise in the equity risk premium.
El Niño, Neutral and La Nina… The three newest BetaShares ETFs? Not quite. These are the three phases of the El Niño–Southern Oscillation (ENSO). Back in October last year, my colleague and Chief Economist at BetaShares – David Bassanese, discussed the impacts the phase of El Niño can have on the Australian economy and on commodity prices.
Although investor concerns over the Brexit decision are starting to ease, the shock result has led to major re-pricing of financial assets and set in train a likely new round of global monetary easing. This note assesses likely investment opportunities in a post-Brexit world.
The Australian exchange traded fund industry grew by 5%, or $1.1B, during the first half of 2016, despite the challenging market conditions, ending the financial year with total funds under management of $22.5B. June was especially turbulent with the Brexit vote and the Australian election all adding to ongoing volatility. Investors continued to support ETFs by investing almost $1.4B in new money into the industry during the last 6 months meaning that all the industry’s growth this half has come from structural growth, with asset price declines actually being a net negative for the industry as a whole.
The industry continues to mature during 2016 with 16 new products added and 10 closed so far this year. We expect the number of new products to grow significantly during the last half of the year in what will be another strong year for product launches.
In BetaShares’ view, the sweeping upper house election victory this past weekend by Japan’s ruling Liberal Democratic party was a vote of confidence in Prime Minister Shinzo Abe’s economic policies and bodes well for the economy over the coming year. With this in mind, we think it is an opportune time to re-consider the case for investing in Japan. In the following blog, WisdomTree Japan CEO Jesper Koll provides his perspective on Japan from an investor’s point of view.
Global equities were weaker in June, largely reflecting a sharp two day reaction to the surprise Brexit decision that had been only partly recovered by month-end. US equities held up relatively well compared to those in Europe and Japan – the latter also hurt by Yen strength. Commodities and the $A were also firmer in the month, though this largely reflected gains prior to the Brexit vote, and a post-Brexit decision surge in gold prices.
The new financial year is the perfect time to make some financial resolutions and review your portfolio, particularly in light of the recent – and continued – volatility in markets. Of course, your personal financial resolutions will depend on your investment objectives, but here are some ideas to spark some thought.