Investment Insights

Welcome to the first edition of our Investment Insights update.

2018-10-23

In this issue we cover:

Economic commentary

We found the economic summary in the latest Dimensional report to be well-rounded: 

Global developed equity markets outside Australia were the star performers on an unhedged basis in the third quarter of 2018, although much of this was due to broad-based weakness in the Australian and New Zealand dollars.

A theme for the quarter was an appreciating US dollar. In September, the Federal Reserve raised its benchmark lending rate for the eighth time in three years, citing an improving economy and forecasting another five moves within two years.

The heavyweight US equity market was the standout globally, with the benchmark S&P-500 index rising more than 7% in local currency terms to register its best quarter in five years.

The Australian market delivered a more modest return of 1.5%, held back by its heavyweight financial and materials sectors, but offset by strong gains by Telstra. The New Zealand market gained more than 4% for the quarter and almost 18% for the past 12 months.

For further insights from this review, read our update below in Markets.

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10 year anniversary of the Global Financial Crisis

It’s hard to believe the Global Financial Crisis was 10 years ago. How has it changed the Australian market? 

We have gathered for you some key pieces that paint a picture of the crisis at the time and an interesting take on how the Australian Banks weathered the storm, but then squandered their opportunity.

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Planning & retirement

Are you focusing on the right factors? While you may think the rate of return is a major factor in building a nest egg sufficient to meet your needs, most people ignore the fact that what you spend in retirement and how you save for it are far more important factors.

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Markets

In the latest Dimensional report, the key themes for the quarter include:

    • Solid 7% Unhedged Returns from Developed Equity Markets, Led by US

    • Modest 1.5% Return from Australia Market; New Zealand Gained 4.5%

    • Healthcare, IT, and Telecoms Among Top Sectors Globally

    • Materials Lagged in Australia and Other Developed Markets

    • Size Premium Negative Across Board; Profitability Mixed

    • Value Premium Positive in EM and Australia; Negative in Global Developed

    • In Fixed Interest, Term Premium was Negative, Credit Premium was Positive

    • AUD and NZD Fell Versus USD and Most Major Currencies in Quarter

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General interest

Exercise your brain with interesting articles & ideas, including NBA endorsements, memory improvement facts and the good news about the reduction in global poverty. All completely unrelated but interesting articles none the less.

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ShineWing Australia news

The international connection and capability of ShineWing Australia continues to expand and strengthen with several key events over October & November. 

Many of our Partners joined 150 counterparts from all over the globe at the ShineWing International Partners Conference in Chongqing, China this month.  Additionally, our membership to the international Praxity Alliance of accounting firms will see us welcome colleagues to Sydney for the 2018 Praxity Global Conference. These networks are key to our relationships, providing an integrated global reach and perspective that assists in providing expertise and opportunities to our clients.

Sydney will also play host to the World Congress of Accountants’ annual conference in November, once again strengthening our international connections.

Next month we will sponsor the International Mining and Resources Conference (IMARC) in Melbourne once again. Our industry experts will address hundreds of companies and executives on the opportunities that lie ahead for the resources sector.

And finally, on a more personal level, ShineWing Australia Partners and staff continue to champion causes that support mental health issues.  Throughout the year, we have raised money for CEO Sleepout, Liptember, LIVIN and next month, Movember – we’ll keep you updated on our LinkedIn page!

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