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 August, risky assets like EM equities and REITs deliver high positive returns as vaccine roll-out accelerates and as investor behaviour shifts to be more bullish. The top performing assets were Global EM equities, A-REITs, Global REITs and Real estate companies.

1. Investors demonstrate risk-on behaviour as vaccine roll-out accelerates.

  • Global Emerging market equities, REITs and small and micro-caps made a comeback over the past month to reflect investors risk-seeking behaviour as the vaccine roll-out accelerated, compared to the month prior amidst rising second wave uncertainty.
  • Small and micro-caps, REITs and Emerging markets led the listed market asset performance.
  • Global Emerging market equities beat Developed markets to be up 23% over 12-months. Global small caps delivered a healthy 3% return over the month and a hectic 44% over 12-months.
  • The AUD Index (TWI) was down 1% over the month and 2% over the year. The AUD weakness provided some tailwind to returns for unhedged offshore investments.
  • The top performing assets over the month were Global EM, A-REITs, Global REITs and Real estate companies.
  • The losing assets were VIX indices and AUD index.
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