|
Australians'
Faith …
in Shares Confirmed
ROTHSCHILD
REPORT NO.3
Australians have one of the world's highest levels of share ownership
and seem to be re-thinking their love affair with residential property.
Their faith in shares is confirmed in the latest results of the Rothschild/Assirt
All Housing Accumulation Index.
Although
the latest quarter of figures (ending 30 June 1999) shows that national
housing investment returns outperformed shares, overall shares continue
to outperform property.
The Housing
Accumulation Index rose by 1.9 per cent in the June quarter, with
shares returning 0.8 per cent. Underlying the modest performance by
the All Ordinaries Accumulation Index was rising bond yields and downgrading
of earning expectations adversely impacting on industrial shares.
However,
with long term figures - a more accurate reflection for investors
- Australian shares almost double housing returns. Shares rose by
a 13.2 per cent per annum (going back to December 1991 when housing
figures could be obtained). Housing returned 7.1 per cent per annum.
One-year
figures paint an even more powerful picture of the benefit of shares.
For the year to 30 June 1999 Australian shares returned 15.3 per cent
compared to housing which returned 4.8 per cent.
The Housing
Accumulation Index, which is compiled for fund manager Rothschild
Australia Asset Management Limited by independent research house ASSIRT
Pty Ltd, reflects the total return of residential property over time,
taking into account rental income and average outgoings. The Index
looks at residential property in Sydney, Melbourne, Brisbane, Adelaide
and Perth.
City-by-city,
Perth continues to deliver the greatest return on residential housing
on a quarterly and long term basis, while Adelaide has staged something
of a recovery in the June quarter. Perth housing returned 3.2 per
cent for the quarter, with Adelaide returning 2.9 per cent. Sydney
followed (2.3 per cent), then Brisbane (1.3 per cent) and Melbourne
a distant last (0.4 per cent).
Providing
they are there for the medium to long term, the new breed of Australian
shareholders are seeing their investments continue to outpace what
was once considered something of an Australian icon: investing in
residential property.
However,
investors should not let their newfound love affair with shares make
them forget that it is still important to spread their risks by diversifying
their portfolios. An ideal way is through managed investments, many
of which provide access to shares, listed property trusts, or a combination
of both.
For
information about these funds telephone 1300
65 65 68
between 8.00am and 7.00pm (Sydney time), Monday
to Friday.
or visit our website at www.rothschild.com.au
Click
Here To Visit
Home Page
Rothschild
Disclaimer
The
information is based on Government laws and regulations current at
time of issue (March 2000). This information is not intended to be
relied upon for the purpose of making an investment decision. This
material provides general information only and does not constitute
financial advice or a recommendation in respect of any Rothschild
product and should not be relied upon as such. The material is made
available in good faith by Rothschild and has been derived from sources
believed to be reliable and accurate. However, it is not intended
to be a complete description of the matters described and Rothschild
assumes no responsibility for updating any information contained in
this material or for correcting any error or omission which may become
apparent after the material appears on the Internet.
Copyright in the material reproduced on these pages is owned by Rothschild.
Except to the extent otherwise permitted by the Copyright Act 1968
(Cth), the material may not otherwise be reproduced or displayed in
public and may not be distributed or transmitted electronically to
any other person or incorporated by any means into another document
or material, including other websites. Without limiting the generality
of the foregoing, Rothschild does not permit reproductions of its
material in other websites in conjunction with advertising, trade
marks, logos or material of other financial planners or competitors
in circumstances when it has not given its prior written consent.
Investments in the funds are not deposits with or other liabilities
of NM Rothschild & Sons (Australia) Limited (ACN 008 458 366) or of
any other company in the Rothschild Group, and are subject to investment
risk, including possible delays in repayment or loss of income or
capital invested. Neither the repayment of capital nor the investment
performance of the funds is guaranteed by NM Rothschild & Sons (Australia)
Limited, the Trustee or the other companies in the Rothschild Group.
AFSD
Disclaimer Notice
|
