
Our wholly owned investment manager, IndexInvest, directs how investment portfolios are allocated across asset classes (shares, property, bonds, cash, etc) and global investment markets. Below are insights of what 2024 delivered for you.
Geopolitics and Markets
Geopolitical events played a significant role in shaping market sentiment. The conflict in Ukraine intensified, leading to disruptions in energy markets and increased defence spending globally.
The year 2024 was notable for elections, with over 60 countries going to the polls. It proved to be a challenging time for incumbents and traditional political parties. Faced with rising costs (higher inflation), cultural divisions, and dissatisfaction with the political status quo, voters in many nations expressed their frustration through the ballot box.
Global share markets, led by strength in USA shares (especially technology companies), had a generally strong year. Global bond markets were challenged by persistently high interest rates reflecting concerns over inflation and government deficits.
Whilst oil prices were mostly stable, fluctuation in currency movements reflected price variation at the petrol pump. Precious metals, led by gold were a strong and stable influence for investors.
Your Superannuation Portfolio
Anticipating the development of certain performance trends in selected markets, IndexInvest allocated more investor portfolio resources to key sectors. This resulted in strong portfolio performance by the following sectors:
1.High quality shares – by focusing on those companies which have key attributes (see below), the sector contributed 20% performance:
- High return on equity
- Earnings stability
- Low debt
- Gold and Silver were particularly appealing in late 2023 and early 2024 and accordingly received solid weightings toward these. The respective return for each over the year was 27.35% and 24.35% respectively. We are aware that few investment managers supported allocations of precious metals for client’s superannuation portfolios.
- Global smaller companies also delivered excellent results with a return of 16%.
The foregoing illustrates some of the benefits from working with us.