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 October, Emerging companies, AUD Currency Index and S&P 500 delivered positive returns while bonds and bond asset proxies realised negative returns.

1. Equities were well-supported in October, notwithstanding rising bond yields.

  • S&P/ASX Emerging Companies continue to be the top performing index indicating investors risk seeking behaviour and a bullish market expectation as the vaccination rate across Australia hit 90% mark.
  • AUD Index (TWI) was up 3.8% over the last month reflecting positive economic growth outlook.
  • Australian Bond proxies sell-off amid the rising inflationary fear.
  • Australian Bonds, Global Aggregate bonds and Global High-Yield suffer losses as long-term bond yields normalise.
  • EM Infrastructure, EM REITs and Global Corporate bonds also suffer losses as investors re-price these assets for higher real and nominal rates in the future.
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