In this month’s Cross Asset Review, we look at the performance of various asset classes in September 2019 and what this means for investors. Our analysis shows that investors continued to bid for safe-haven assets such as gold, bond and bond proxy assets in September. Geopolitical risks, trade tensions and dark clouds over global growth lead to a massive rise in fear gauges
1. Significant shifts in volatility contribute to continued outperformance of safe-haven assets over the quarter.
- Global and Australian VIX (volatility) indices Indicate significant shifts in volatility for investors.
- Amid this backdrop, it wasn’t surprising to see continued outperformance of safe-haven assets such as gold, government bonds and bond-proxy assets such as infrastructure and real estate over 3 months.
- The US equity market volatility Index (CBOE VIX) rose 12% in September quarter to be 44% higher over 12 months. Australian equity market VIX rose 1% to be 21% higher (yoy).
- Emerging Company performance was an exception, rising 13.69% over the quarter.
- Emerging REITs, AUD (TWI) and MSCI EM were the laggards over the quarter delivering negative returns.
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