April 2016 Investment Report

06 / 05 / 16April 2016 Investment Report

April 2016 Investment Report

The markets for the month of April 2016 are as follows:

ASX (Australia) 5.06%
Dow Jones (USA) -0.09%
Hang Seng (Hong Kong) 2.77%
FTSE (England) 1.56%
Nikkei (Japan) 3.1%
Shanghai (China) -2.37%
BIST (Turkey) 3.60%
BLOM (Lebanon) -0.59
SASEIDX (Saudi Arabia) 5.04%
KSE100 (Pakistan) 3.80%

Mixed performances for the month of April, however the Australian market is one of the standouts along with Pakistan, Saudi Arabia and the increasingly reliable Turkish market. Expect some volatility in the next few months with concerns over company financials and economic data to be released.
Consumer price index figures indicate Australian consumer prices have declined by 0.2% in the previous quarter, resulting in a year on year increase of just 1.3% in inflation. This has essentially resulted in the Reserve bank of Australia to once again reduce overnight cash rate from 2% to 1.75%. The 25 basis point reduction has resulted in the lowest ever cash rate in the history of the country allowing consumers potentially to access low cost finance.

Insolvency numbers have increased once again in the previous quarter with a rise of 1.5% from this time last year, indicating an increasing trend in debt stress within Australian households.

Oil is showing some short term recovery and stability hovering just over $40 USD/bbl.

Gold is enjoying a Stella year with the precious metal surpassing $1,300 USD an ounce for the first time for over a year. It has now increased more than 22% this year, outperforming the share market and property market.

Australian house prices have increased in the month of April with a 1.7% increase nationally. Sydney and Melbourne once again lead the charge with a 2.4% and 1.1% increase respectively.

The federal budget has been recently released with some changes to superannuation and taxation. The following link provides some insight:Federal Budget 

Please make an appointment to see one of our advisers if you need advice or clarification on changes announced in the federal budget.

We would encourage all our clients or potential clients to be patient with their investments and consider long term objectives. If uncertain or concerned, please do not hesitate to make an appointment with one of our experts.

ASIC investigates Barakah Properties (Al-Siraat College) superannuation scheme

 

We have had many enquiries from concerned investors regarding Barakah properties, which raised capital to establish Al Siraat Islamic College. The Australian securities and investment commission (ASIC) released information regarding possible breaches of the Corporations Act, which lead to Muslim Investors contacting our office with grave concerns regarding their funds. We would advise any concerned investor to please contact a professional to discuss their superannuation and possible options. Please feel free to contact our office if you have further concerns or require advice. The ASIC article can be read by clicking on the following links:
ASIC and Money Management