Key Insights

In this month’s Cross Asset Review, we assess the past performance of various asset classes and draw implications for multi asset investors. In July, Safe haven assets like Gold and Bonds deliver high positive returns as concerns over COVID 19 Delta variant grows and as the economies shows signs of slow down. The top performing assets were Global VIX, Developed Market REITs and Gold.

1. Shift towards Safer Investments as concerns over COVID 19 Delta variant grows

  • Global and Australian VIX (volatility) indices spiked substantially over the month to reflect investors uncertainty due to Global Virus resurgence.
  • Amid this backdrop, safe haven assets like gold and bonds delivered positive returns over the past month. Gold rose to 4.8% in July to be up to 8% over the past 3 months.
  • The top performing assets over the month were Global VIX, Developed market REITs and Gold.
  • The losing assets were Emerging Markets REIT Index, MSCI EM NR and Australian Dollar Trade Weighted Index.
  • Within Equities, Developed and Frontier markets beat Emerging Markets. Additionally, bond proxies like GREITs and Global Listed Infrastructure made positive returns over the past month.
  • It remains to be seen if the latest inflationary fears and the moderation in the global growth would further dampen the returns made by equities.
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