DelphiNews June 2016

I’m pleased to enclose the latest edition of DelphiNews.

Market Update

The recovery in equity and commodity prices from February lows continued into May with the third straight month of equity and commodity price rises.

Oil prices continued to move higher, up another 7% in May whilst iron ore prices gave back their recent gains with a 24% decline over the month.

US economic data was fairly good leading to increased talk of impending rate hikes and European data was stronger-than-expected

Australian growth was stronger than expected in the first quarter of 2016. However, pricing pressures in the economy are fairly low, reinforcing the RBA’s early May decision to cut official interest rates to 1.75%.

Economic Update

In the latest Economic Update, Bob Cuneen Portfolio Specialist at MLC, reviews events in Australian and Overseas markets during May. Bob notes that global shares were initially soft in May as concerns over the impending US interest rate hike weighed on markets. However there were strong share price gains in the final week of May given solid US and European economic data. US and European shares ended the month with price gains of around 1.5%. Japanese shares benefited from a weaker yen currency performance during May with Japan’s Nikkei Index rising by over 3%.

Australian shares were solid performers in May with the S&P/ASX200 Accumulation Index up 3.1%. Investors favoured Australian banks given their high dividend yield. However resource shares were generally weaker given the falling iron ore price in May.

What does the 2016 Federal Budget mean for your super?

In the 2016 Federal Budget, the government announced a series of reforms designed to improve the sustainability, flexibility and integrity of the superannuation system. Since then, there’s been a lot of speculation on the impact these reforms could have on Australians saving for the future. The article below outlines more about these proposed changes to super.

Budget reminds us there's more to retirement than super

Robin Bowerman, Head of Market Strategy and Communications at Vanguard notes that regulatory risk is firmly back on the agenda for those planning their retirement savings.

Her article suggest that this year's budget is the most far-reaching in terms of the fundamental structure of super since the 2006-07 budget delivered by Peter Costello that dramatically made pension accounts tax-free.

Why you should home swap your next holiday

On a lighter note, with accommodation one of the biggest vacation costs, home exchanges are becoming an increasingly popular way to travel. Below you will find what you need to know if considering a swap!

Please contact us if you have any questions regarding your financial requirements or this month's articles.

Regards

Vince Dore CFP
Director

Vince Dore and Delphi Financial Management Pty. Ltd are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749, trading as Garvan Financial Planning/MLC Financial Planning an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.

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