The S&P/ASX200 Accumulation index had a flat month, quarter, and half year, with a -0.91% return since the end of March. The one year numbers still show a gain of 9.25%, quite a bit lower than the 12 months that ended 30 June.
Global markets had a better month, with gains of 3.39% and a rolling 12 month return that tops the charts at 15.89%.
Bond markets sold off again during September as interest rates rose. The one year figures are negative or close to it for both global and Australian bonds. This is a slow burn, and although from month to month we may see some gains when political events see a rush to the safety of long dated government bonds, the general trend appears to be to higher long term rates which is bad for ‘long duration bonds’. Our preferred exposures in this sector are high grade corporate debt, with short maturities.
The A-REIT sector (real-estate trusts) made a small gain in the month of September, up 0.57%, but are down 1.97% over twelve months.
As we pointed out last quarter, the ten year returns in the above table picks up the point just prior to the GFC. Historic returns are best viewed with an intimate knowledge of history and the understanding that investing just on the basis of a good return last year, is not likely to give you the best long term result.