Investment market update

08 May 2024

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The BUSSQ Balanced Growth Super option had a strong quarter returning 4.04% and 8.61% for the last 12 months to 31 March due to strong equity returns. The Balanced Growth Income account option returned 3.93% for the quarter and 8.94% for the last 12 months to 31 March. 

Australian shares rose 5.4%* as more subdued inflation data in March raised hopes for rate cuts during the second half of 2024 and bolstered the performance of interest rate sensitive sectors, including banking and real estate.

Global share markets rose 13.7%^ (in Australian dollars) strengthened by a resilient US economy and the continuation of artificial intelligence (AI) enthusiasm. Later in the quarter the rally broadened as investors gained confidence that the US Federal Reserve could rein in inflation and begin to cut rates without triggering a recession. 

Emerging market shares also benefitted from positive global market sentiment but trailed developed markets only rising 6.8%^ (in Australian dollars).

We anticipated that both inflation and interest rates would remain sticky and elevated, and this appears to be playing out with the markets now pricing in the expectation that there will be limited rate cuts both here and in the US.

Looking forward, despite the recent equity rally, geopolitical risks and market volatility remain and may continue to rise. Because of this we are currently exercising caution and are relatively defensively positioned in our asset allocation strategy, but ready to take advantage of opportunities as they arise.    

To see our latest investment returns, visit our monthly investment performance page.

*Australian Shares measured by the S&P/ASX 300 Index. ^ Global share markets and Emerging markets measured by the MSCI World Index
Investment returns are net of investment fees and costs, and taxes, and the percentage-based administration fee. Past performance is not a reliable indicator of future performance. Performance is only one thing to consider when choosing a super fund.

This market update provides general information and advice only and does not take into account your personal investment objectives, financial situation or needs. Before acting, you should review the Product Disclosure Statement (PDS) to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or obtain financial advice tailored for your personal circumstances. The PDSs and Target Market Determinations for BUSSQ products can be found at Issued by BUSS (Queensland) Pty Ltd ABN 15 065 081 281 AFSL 237860, Trustee for Building Unions Superannuation Scheme (Queensland) (BUSSQ) ABN 85 571 332 201.


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