Global markets experienced uncertainty and volatility in the quarter to 31 December 2016.
However the finalisation of the US election, despite Donald Trump winning, saw some of the uncertainty dissipate. Donald Trump’s winning speech also provided a number of initiatives which were viewed as positive by markets, which saw an uplift into the end of the year. Despite this, Europe and the US performed solidly with the Australian share market supported by the improvement in resource prices and a rebound in the banks.
Fixed income markets came under pressure, with the expectation that highly stimulative interest rates would no longer be required as growth improved. This saw most fixed income markets underperform.
Returns across the main asset classes were positive over the last twelve months:
Fixed Interest: +3.04%
Australian Shares: +10.31%
International Shares: +6.84%
The returns are in line with an expected emerging trend of lower medium term growth for super savers generally. However, super is a long-term investment, and the existing return targets of MTAA Super's investment options remain unchanged.