Investment market update
15 June 2021
The Balanced Growth Super option and Balanced Growth Income account option for the financial year to 3 June 2021 have returned 14.2% and 13.7% respectively, net of fees and taxes. The performance of these options has been driven by the strong share markets seen over the financial year.
Globally, economies are recovering and returning to pre-pandemic activity. Share markets continue to track positively as seen in the first half of the financial year with the rollout of the vaccine gaining momentum and restrictions continuing to ease particularly across Europe and the US. In the US economic activity has picked up with the Government’s US$1.9 trillion stimulus taking effect. It is expected that the US economy will return to pre-pandemic levels over the next few months.
Domestically, the Reserve Bank of Australia (RBA) has maintained the cash rate at all time lows. At their latest meeting in June, the RBA stated it’s focused on reducing unemployment and increasing the level of inflation to support the local economy. It also expected that interest rates will not likely rise until 2024.
To support the economic recovery we are currently seeing, the RBA and Central bank officials from the US and Europe have all reconfirmed their existing policies and committed to keep interest rates low.
Past performance is no guarantee of future performance. This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).