Three pieces of good news for investors
Just as records were being broken for the hottest day on record in parts of Europe, June served up a number of positives for investors closer to home in the markets.
First, the US and Iran agreed to a 60-day formal ceasefire. As a result, oil prices declined to under US$70 a barrel for Brent Crude - very close to pre-war levels.
Second, new US Federal Reserve Chair Kevin Warsh held his first meeting and promised to bring inflation back to target in the US.
Third, the AI boom continued at full pace, with Elon Musk's SpaceX listing on the Nasdaq at close to a US$2 trillion valuation. It's the biggest initial public offering (IPO) in history, and it's made Elon the world's first trillionaire.
Fund performance
With oil prices falling and a new Fed Chair promising price stability, markets were relatively upbeat through June.
Our
Property & Infrastructure Fund benefited from this environment, as interest rates fell around the world, lifting valuations for long-term assets. The fund returned 2.9% for the month (after fees, before tax).
Weaker commodity prices were generally a headwind for Australian shares, although most of our Australasian funds still produced solid gains. More broadly, if the Reserve Bank of Australia raises interest rates by less than markets expected just a few weeks ago, this should provide a more supportive backdrop for Australian share markets.
What's next
It's great to have some key market risks now in the rearview mirror. Unfortunately, new turbulence is bound to return at some point - that's investing. For now, sit back, relax, and enjoy the relatively calm ride.
If you have any questions or concerns about your portfolio, our team is here to help. Please don't hesitate to get in touch – our contact details can be found
here.
Thank you for your continued trust.