May 2008

May saw mixed performance for our growth assets, with positive returns from Australian shares, while International shares (hedged to $A) and Australian Listed Property declined. Financial asset (Australian and international fixed interest) performance was mixed for the month.

Australian shares

The Australian stock market gained 1.7% in May, following a gain of 4.5% in April (S&P/ASX300 Accumulation Index). Resource stocks outperformed Industrial stocks over the month, returning 7.3% and -1.1% respectively.

International shares

Overall, international stock markets gained 0.3% in May, further to an increase of 1.9% in April (MSCI World Ex Australia in $A (unhedged)).

The US stock market gained 1.1% in May, following a gain of 4.8% in April (S&P500). Technology stocks were positive, returning 4.6% for the month (NASDAQ).

The UK stock market declined 0.6% for the month, following a gain of 6.8% in April (FTSE).

The Japanese stock market (Nikkei) returned 3.5%, further to a gain of 10.6% the previous month.

Emerging markets gained 0.7% in Australian dollar terms, following a gain of 4.8% in April (MSCI Emerging Markets Free ($A) Accumulation Index)

Property

Australian listed property declined 9.0% (S&P/ASX200 Property Trust Accumulation Index), following a gain of 4.3% the previous month.

Fixed interest

The Australian bond market (UBS Australia Composite Bond Index) returned 0.1% in May. The international bond markets (Lehman Bros Global Aggregate Index (hedged to $A)) returned -0.5% for the month.

Cash

The Australian short-term money market returned 0.7% (UBS Warburg Australia Bank Bill Index).