|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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