Market Commentary

The month of June saw strong returns across a range of sectors and in aggregate resulted in very good returns for investors in the Nikko AM diversified funds. The highest returns came from global equities (which bounced back from losses in May), but New Zealand equity securities also continued to rise particularly in the utility and property sectors. Since the start of the year, Government bond yields around the world have, unexpectedly, fallen sharply and this has been a material contributor to this surge in equity prices as well as providing bond investors with significant price gains. Unsurprisingly, with bond yields moving so much our Option fund has experienced losses and this has had a modestly negative impact on the diversified funds via their exposure to this strategy.

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