Welcome to the latest issue of Investment Intel: Australia where we have curated the most important market news specifically for Asian investment managers.

If you have any questions about this newsletter or the services of APAC Financial Services, please let me know.

Best wishes,

David Thomas
APAC Financial Services
Email: davidthomas@apacfinancialservices.com

Current News and Insights

Australia’s overall budget balance is the second strongest among G20 nations, behind only Canada, according to the International Monetary Fund’s latest fiscal monitor. Australia has shot up the rankings, having placed equal 14th in 2021 and seventh in 2022. More information here.

The unemployment rate has risen slightly to 3.8%, a stronger-than-expected result that will likely end any chance of a mid-year interest rate cut. The jobless rate, revealed this week by the Australian Bureau of Statistics, is only a marginal increase on last month's figure. More here.

Jerome Powell's recent remarks have dashed hopes of a June Fed rate cut, causing the Australian dollar to plummet to a 5-month low. The likelihood of Australian rate cuts is now uncertain, influenced by Powell's stance and the local dollar's fluctuations. More information here.

The Australian exchange-traded funds (ETFs) market has surged in the past 12 months reaching a total value of just under $200 billion, aided by a strong recent showing from bitcoin-linked funds. As of March 31, the ETF market in Australia was worth $197 billion, an increase of almost 38 per cent over the past year and almost twice the market’s value three years ago. More here.

This week three solutions providers Betashares, Franklin Templeton, and Russell Investments, all introduced new ETF products, including moderately geared ETFs by Betashares offering exposure to Australian shares and global portfolios. Franklin Templeton launched active ETFs focusing on Australian bonds and global growth, while Russell Investments introduced an actively managed ETF emphasizing ESG concerns in global equities. Further information can be found here.