Markets have seemingly turned back the clock over the last month, with a return to volatility not seen since the global financial crisis, a report by Australian Fund Monitors says.
Once again there was movement across a range of asset classes, with April’s loss of 1.40 per cent by the ASX200 just a taste of May’s falls precipitated by the Eurozone’s debt woes, aided and abetted by Kevin Rudd taking aim at the mining industry.
AFM’s E5 Model Portfolio of active equity managers posted a positive return of 0.09 per cent for the month, outperforming the index and maintaining its record of annualised performance of over 15 per cent with a volatility of less than six per cent.
Elsewhere, with almost 50 per cent of equity based managers’ results in for April, the results were marginally better. May’s returns however could test some of the managers who have ridden the rally in equities over the past 12 months.
Australian Fund Monitors’ index rose by 0.34 per cent in April. Equity based funds were up by 0.38 per cent and non-equity based funds by 0.27 per cent.
