New Zealand sharemarket running red hot while Australian equities cool in December
The tables below show the performance of our KiwiSaver and Investment Funds to the end of December 2019.
Here's what influenced the markets last month:
- Global bond yields continue an upward trajectory and are significantly higher than this time three months ago. Conservative and Bond Fund show capital losses over the month.
- The US Federal Reserve does not believe further rate cuts are required and policymakers expect rates to remain stable in 2020. The range remains 1.5%-1.75%.
- NZX50 Index up over 1% for the month and a whopping 30% for the year
- Investors continue to chase high dividend-paying stocks as term deposit rates shrink.
- Retirement village operator Metlifecare received a takeover offer from a Swedish fund manager. A shareholder vote on whether to accept the offer is in April.
- Australian shares sank 3% in December resulting with a slight drag on our overall Growth Fund performance.
- Solid gains from global indices over the month with the US market up nearly 3% and posting its best annual return since 2013.
- UK election results went as expected giving the market greater confidence about Brexit occurring in an orderly manner.
- Profit-taking toward the year-end and the tensions in the Middle East took some shine off the traditional December “Santa” rally.
- NZD posted a solid 4.7% rise in December against the USD and was up 3.2% on a trade-weighted basis
- Over the full year, however, the NZD was basically steady against the global basket of currencies.
|Simplicity Growth Fund||01.09.16||3.51%||22.34%||11.86%|
|Simplicity Balanced Fund||01.09.16||2.03%||17.49%||9.42%|
|Simplicity Conservative Fund||01.09.16||-0.29%||10.10%||6.21%|
|Simplicity Guaranteed Income Fund||24.10.17||1.88%||15.38%|
|Simplicity Growth Investment Fund||03.04.17||3.47%||22.46%|
|Simplicity Balanced Investment
|Simplicity Conservative Investment
|Simplicity NZ Bond Fund||03.04.18||-2.86%||5.05%|
|Simplicity NZ Share Fund||03.04.18||5.45%||31.17%|
These returns are to 31 December 2019 and are before tax and after fund management fees.