by David Blumenthal Notes (1) Past performance is not indicative of future performance. (2) No rebalancing, cash holdings or trading costs are included. The calculations are based on the published closing prices for each ETF, not NAV. They assume dividend reinvestment.
Emerging markets, fixed income and infrastructure were the only assets to post positive gains during January
Emerging markets were up 1% for the month, with weakness in the USD and stronger than expected macroeconomic data helping to boost Chinese and Taiwanese equities. Brazilian stocks were also assisted by a 0.75% cut in local interest rates.
Returns across our bond and bank deposit ETFs were positive (up +0.6% and +0.2% respectively) but muted, reflecting the prevailing interest rate environment and rising inflation expectations.
Global infrastructure stocks were up slightly in January (+0.3%), buoyed by optimism over the potential impact of President Trump’s plans for higher infrastructure-related spending.
Australian shares were down -0.8% in January. After briefly hitting a 21 month high early in the month (on the back of encouraging US and Chinese economic data releases), the ASX200 lost momentum as investors seemed to become increasingly wary of Trump’s social and economic agenda.
International shares declined -2.6% in January. Although general optimism about Trump’s pro-growth policies help push US indices to all-time record highs during the month, these gains were offset by weakness across European and Asian bourses and a 4.6% gain in the AUD.
Our international listed property ETF lost ground during January, predominantly as a result of the strengthening AUD.