Resources

From the current COVID-19 situation to the future, markets will always face periods of uncertainty and volatility. A measured approach to investment management can assist with supporting your investment portfolio in these periods. In this paper, we discuss four common approaches. Download now Market volatility refers to the magnitude of upward and downward movements in asset prices over a period of time. A company whose stock price moves up and down by 1% daily is considered less volatile than one with 5% daily moves. Investors tend to think of volatility in terms of downward market movements, as we are currently seeing, but it can equally relate to the pace of rising markets. Approaches to managing volatility 1. Diversification ...
Key highlights India, like all other markets, has been deeply affected by COVID-19 However, this has now reset company valuations to highly attractive levels When the markets begin to recover there are strong reasons to believe India can flour-ish anew One of the easiest, most cost-efficient ways to get exposure to India for Australians is via the ETFS-NAM India Nifty 50 ETF (ASX Code: NDIA) ...
This week's highlights Equity markets rallied last week on the announcement of significant stimulus measures across the globe. The top performing equity funds for the week offered a range of exposures from global property (REIT), Japan (HJPN), gold miners (MNRS) and energy companies (FUEL). On the negative side, Indian equities (NDIA and IIND) reacted to aggressive lock-down measures and Australian banks lagged the domestic market. Precious metals rebounded strongly from the previous week’s declines. Gold benefited from haven buying and a slowdown in financial deleveraging. Platinum and palladium both saw big jumps on supply concerns linked to mine shutdowns due to coronavirus. Palladium fund ETPMPD was the week’s top performer, returning 31%. Oil continued its decline, while the Australian dollar rally saw AUDS amongst the top performers and YANK, USD and ZUSD amongst the poorest. Total flows into domestically domiciled ETFs were $515m, while outflows totalled $553m. Bearish funds BBOZ and BBUS saw large inflows alongside equity funds A200, IHVV and STW, gold (GOLD) and US dollar cash (USD) also saw strong flows. IVV saw the largest outflows as investors looked for hedged exposures. Emerging market bonds (IHEB) also saw large outflows. Bearish domestic fund BBOZ was the most traded fund for the third week running, followed by broad-based funds STW and VAS. GOLD again saw above average trading. ...
This week's highlights Another week of extreme volatility saw the S&P/ASX 200 fall 13%, the S&P 500 drop 15% and the VIX peak above 85. Bearish ETFs (BBUS, BBOZ and BEAR) were the top performing funds, while foreign currency funds (YANK, ZUSD, USD and EEU) also saw strong gains for the week as the AUD fell to 17-year lows. Amongst long-only equity funds, gold miners (GDX) bounced back and Japan (IJP) saw modest gains. On the negative side, leveraged funds (GGUS and GEAR) were significant decliners along with oil (OOO). Real estate funds, both domestic (MVA, SLF and VAP) and international (REIT and DJRE) were also amongst the hardest hit. Precious metals mostly declined for the week. Silver and platinum saw big dips, while palladium stabilised. Gold dropped 2% in US dollar terms, but gained ground in AUD. Total flows into domestically domiciled ETFs were $297m, while outflows totalled $918m. Domestic equity funds including STW, GEAR and MVW saw the largest inflows. Cash and fixed income funds (IHEB, AAA, BILL, IAF, QPON, IHHY and CRED) saw significant outflows. ...
This week's highlights COVID-19 and Saudi Arabia’s aggressive moves to ramp up oil supply saw for one of the most volatile weeks ever across financial markets. Bearish ETFs (BBOZ, BBUS and BEAR) were the top performing funds, while foreign currency funds (YANK, ZUSD, USD, EEU and POU) also saw strong gains for the week. Amongst long-only equity funds, only China ETFs (CETF and IZZ) saw green. On the negative side, there were many. Energy companies were hit hardest – FUEL fell 27% for the week. Gold miners were also hit hard, despite the metal trading flat in AUD terms. European equity funds (HEUR) were also amongst the biggest decliners. Precious metals were not immune. Gold dropped 7% is US dollar terms, but held its ground in AUD. Palladium gave up most of its recent gains, dropping nearly 30%. Oil ETF OOO fell 23% for the week. The Australian dollar fell below US62c for the first time since 2008. Total flows into domestically domiciled ETFs were $460m, while outflows totalled $468m. Domestic equity funds dominated flows with A200 and STW seeing the largest inflows and IOZ seeing the largest outflows. GOLD, QAU and USD saw strong haven flows, while crude oil fund OOO saw speculative inflows following the massive price drop. ...
This week's highlights Gold miners headlined the top performers in a turbulent week, with MNRS and GDX seeing returns in excess of 8%. Defensive sectors, including healthcare (DRUG), consumer staples (IXI) and infrastructure (IFRA) were also amongst the top performers alongside bearish funds BBOZ and BEAR. Financial sector ETFs (MVB, OZF, QFN and BNKS) were the week’s poorest performers, with high beta plays such as India (NDIA) and technology (TECH) also seeing declines. Gold continued to push higher, trading above US$1,690/oz towards the end of the week. Hedged gold (QAU) added 3.7%, while palladium (ETPMPD) dropped 8.0%. Oil saw big declines, with OOO dropping 7.8%. The Australian dollar regained ground, adding close to 3% for the week and AUDS was amongst the week’s top performing funds. Total flows into domestically domiciled ETFs were $424m, while outflows totalled $181m. iShares S&P/ASX 200 ETF (IOZ) and ETFS Physical Gold (GOLD) saw the largest inflows for the week. BetaShares Australian High Interest Cash ETF (AAA) saw the bulk of the week’s outflows. VAS was the most traded fund last week, followed by IOZ. BBOZ and MGE saw above average volumes. ...