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.
