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- Retirement Planning... How Much Will You Need For Capital Items?
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- Retirement Planning... How Much Money Do I Need To Retire?
- Becoming Depreciation Wise
- Current Market Volatility Update
- Depreciate & Appreciate
- Financial Markets Performance for the Financial Year Ended 30 June 2011
- July Newsletter 2011
- FPA calls on Industry Super network to finally come clean
- Self-Employed Super Tax Deduction
- June Newsletter 2011
- Caton's Corner June 2011
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- Reminder - Victorian WorkCover Remuneration Estimate
- April Newsletter 2011
- Caton's Corner April 2011
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By Gary Lucas of DMG Financial Planning
July 26, 2011
The table below indicates some reasonably good, but mixed results for the last financial year. There was and still is plenty of bad news that captured our attention. However there were also some periods of strong returns during the last year that were not well publicised.
| Sector | 1 Year % returns |
| Cash | 4.98 |
| Australian Listed Property Trusts | 5.84 |
| International Property (Hedged) | 36.60 |
| Australian Sharemarket (S&P/ASX 300 Accum Index) | 11.90 |
| Australian Small Companies | 16.41 |
| International Shares - Hedged (removes effect of currency movements) | 26.72 |
| International Shares - Hedged (includes effect of currency movements) | 2.99 |
Again it shows the importance of having a well diversified and well constructed portfolio to add value. Our approach of asset class investing provides this and has delivered again over the last year. Including a broad allocation to small companies, international property, infrastructure and emerging markets is an approach that involves risks that are worth taking- those risks that are more likely to be rewarded than stock picking or market timing.
There are still challenges and the plight of Europe and the USA are concerning. These issues are weighing down or restricting what would otherwise be good progress and recovery in this part of the cycle. These issues need to be resolved and done so satisfactorily, not just a temporary measure, before we can again be confident about stronger growth. Governments need to spend less than they earn to improve their position that was caused by excessive borrowing.
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