Whakarāpopototanga mākete / Market Commentary to 30 September 2024
Rate cuts and economic data releases were the drivers of equity performance in September. Equities continued to surge higher as the US Federal Reserve joined other world economies in initiating an easing cycle, cutting rates by 50 basis points. The S&P 500 returned to achieving all-time highs, up 2.1%, while the NASDAQ rose even higher at 2.8%.
New Zealand equities were flat in September, as economic data releases, though surprising to the upside, remained subdued. Real GDP for the June quarter fell -0.2%, though it wasn’t as low as expected by the market.
Easing cycles in other parts of the world were also heating up, with the Bank of Canada cutting by 25bps for its third consecutive meeting, while the European Central Bank restarted its cycle with a 25bps cut after a pause at its last meeting. Chinese equities also reacted very positively to wide-ranging fiscal stimulus commitments by the Chinese government.
The Whai Rawa Funds were broadly in-line with benchmark over September. The Tōtara-Conservative Fund returned 2.50%, the Mataī-Balanced fund returned 3.04%, and the Rātā-Growth Fund returned 2.54% over the quarter. These returns are after fees and tax.
Whakaata Haumi / Investment update video
The Whai Rawa tīma discuss the current market situation.
Hua ahumoni ki Whai Rawa / Whai Rawa Returns as at 30 September 2024
Notes: Past performance is not a reliable indicator of future performance. Where applicable returns include, and assume the full utilisation of, tax credits. Net returns shown are returns after fees and taxes. The benchmark is the strategic asset allocation weighted benchmark index return, where the benchmark indices (which comprise of market indices and peer group indices) are defined in the Statement of Investment Policy and Objectives (SIPO). The benchmark does not include any deductions for tax but does include deductions for some charges. Where applicable returns include, and assume the full utilisation of, tax credits. Numbers are rounded.
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Whai Rawa Fund Limited is the issuer of the Whai Rawa Unit Trust. A copy of the Product Disclosure Statement is available at www.whairawa.com/pds. All content is subject to WRFL’s financial advice disclosure statement available here www.whairawa.com/financial-advice.