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 September, Emerging companies and Commodities delivered high positive returns as nation’s vaccination rate increased significantly and improved investor confidence. The top performing assets were CBOE VIX, S&P/ASX Emerging Companies, and Core Commodity CRB TR.

1. CBOE Market Volatility (VIX) made a comeback by delivering extremely high returns.

  • CBOE Market Volatility (VIX) made a comeback over the past month (41%) followed by S&P/ASX Emerging
    Companies to reflect investors risk-seeking behaviour as the vaccination rates increase and state lockdowns ease.

  • After CBOE Market Volatility (VIX), Small caps, Core commodities and Frontier led the listed market asset performance in the past month.
  • A-REITs and Small ordinaries delivered negative returns in contrast to leading the charts last month. AREITs fell to -1.9% followed by Small Ordinaries at -2.1%.
  • The AUD Index (TWI) was down -0.7% over the month. The AUD weakness provided some tailwind to returns for unhedged offshore investments.
  • The losing assets were FTSE and MSCI Emerging NR
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