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DelphiNews August 2013

Welcome to the August edition of Delphi Financial Management's newsletter.

I’m pleased to enclose the latest edition of Market Update.

Global economic growth returned mixed results last month, with the US and Eurozone continuing to show signs of improvement, while China remained challenged by the growing need to realign its economy.

The US economy showed signs of recovery with improving housing and employment results coming through in July. Consumer confidence was also at a six-year high, mainly due to the increase in personal wealth tied to higher property values and stock portfolios.

Making news on the home front, Prime Minister Kevin Rudd announced there will be a Federal Election on 7 September 2013.

The Reserve Bank of Australia has cut interest rates by a further 25 basis points at its August meeting, with the 2.5% interest rate the lowest since 1959.

Australian residential property market continued its upward trend in July. Over 2013, home values in capital cities have increased 5.6% on average - with Sydney being the standout with an increase of 6.7%.

MLC's Portfolio Manager, Ben McCaw reviews events in Australian and Overseas markets in the July Editon of the Economic Update. He mentions that "we think the markets will continue to pay very close attention to data in the US and to any communication from monetary policy makers. While there’s a good chance that US growth will be self-sustaining, it’s still important to think about alternative future scenarios, especially scenarios with lower monetary support and steady (but below trend) growth".

Client Annual Statements have commenced being delivered and those with super and pension accounts should receive these by the end of next month. Tax Statements (for non Super/Pension Accounts) will not be available until towards the end of the year. After you have had an opportunity to review your Annual Statement, if would like to review your current investment strategy please contact us.

 

Regards

Vince Dore

Director