|
 |
 |
Another year of double-digit growth!Portfolios score double-digit growth despite recent sharemarket slide Portfolios with exposure to Australian shares began the June quarter on a high. The S&P/ASX 200 and All Ords had both hit the magic 5000 mark in the last week of the previous quarter, and strong momentum in resources stocks drove the markets to new highs in April to early May 2006. May to June saw a turnaround, with risk-averse sharemarket investors driving a sell off and high energy and commodity prices fuelled inflationary concerns and increased speculation of interest rate hikes – thereby further dampening investor confidence. Australian shares ended the quarter in negative terrain, delivering –0.20% (ASX 200) to –0.26% (ASX 300). Meanwhile, international shares returned a more disappointing –2.73% (hedged) and –4.62% (unhedged). However, these negative quarterly returns belie the longer-term results that have been achieved by sharemarket investors. As you will see in the Fund Performance table, all but the more conservative Russell portfolios (and unhedged indexed international shares) have delivered double-digit growth – not just for the year to 30 June 2006, but also since inception. Such returns are largely attributable to the outstanding bull run of the Australian sharemarket since March 2003, and an investment approach that takes a strategic, longer-term view. Getting back to the June quarter itself, Australian listed property trusts were the best performers, significantly outperforming the broader sharemarkets in the three months to 30 June 2006. Despite the attenuating effects of a strong sharemarket and interest rate pressures from central banks in the first part of the quarter, the Australian LPT sector faired well during the sharemarket fall in May and June. Quarter-end returns of 4.41% (ASX 300) and 4.54% (ASX 200) for this sector were largely due to strong results from industrial trusts. International property securities, which exhibited strength in the March quarter, did not do so well, returning –2.06%. Meanwhile, Australian bond markets continued to suffer, with an increase in the official cash rate and continuing inflationary concerns causing yields to break out of their typical trading range for the 12 months to 30 June 2006 and put downward pressure on bond returns for the June quarter. This trend was also reflected in bond markets internationally. View Russell SuperSolution performance as at 30 June 2006
|
 |
|
 |
|
|
Terms
of Use. Privacy
Policy.
Achieve is issued by Russell Investment Management Limited (RIM), ABN 53 068 338 974, AFSL 247185. In preparing this information we haven’t taken into account your own personal circumstances, including what you want and need for your financial future. It is important for you to consider these matters and also to obtain and read the relevant PDS before you decide whether to acquire or to continue to hold a product. Go to www.yoursupersolution.com.au to download a PDS. Interests in Russell SuperSolution are issued by Total Risk Management Pty Ltd.
|
|
