October 2007
October saw mixed performance for our growth assets, with positive returns from Australian shares, while Australian listed property, and international shares (hedged to $A) declined. Financial asset (Australian and international fixed interest) performance was also mixed for the month.
Australian shares
The Australian stock market returned 2.9% in October, following a return of 5.6% in September (S&P/ASX300 Accumulation Index). Industrial stocks outperformed resource stocks over the month, returning 2.7% and 2.5% respectively.
International shares
Overall, international stock markets declined 1.7% in October, further to a decline of 4.0% in September (MSCI World Ex Australia in $A (unhedged).
The US stock market gained 1.5% in October, further to a gain of 3.6% in September (S&P500). Technology stocks were also positive, returning 5.8% for the month (NASDAQ).
The UK stock market gained 3.9% for the month, following a gain of 2.6% in September (FTSE).
The Japanese stock market (Nikkei) returned -0.3%, following a return of 1.3% the previous month.
Emerging markets gained 6.1% in Australian dollar terms, further to a return of 2.1% in September (MSCI Emerging Markets Free ($A) Accumulation Index).
Property
Australian listed property declined 0.5% (S&P/ASX200 Property Trust Accumulation Index), following a return of 2.3% the previous month.
Fixed interest
The Australian bond market (UBS Warburg Australia Composite Bond Index) was flat returning 0.0% in October. The international bond markets (Lehman Bros Global Aggregate Index) returned 1.0% for the month.
Cash
The Australian short-term money market returned 0.6% (UBS Warburg Australia Bank Bill Index).