The cumulative results of twelve rate rises since May 2022 are yet to be fully seen and the RBA acknowledges this. The pause is not a reflection of mission accomplished, and certainly not the harbinger of smooth sailing ahead. In fact, the July 2023 RBA minutes are the first since August 2022 which do not mention keeping the economy on its proverbial ‘even keel’.
A rapid cooling of the economy introduces risks of further market volatility. Inflation, likewise, erodes the value of money.
So while the RBA pause might appear as a temporary reprieve for some, vigilant investors will be using this moment to reassess their portfolios. Does the performance of individual products within your portfolio correlate with broader economic performance? If so, what might negative economic growth do to their valuations? Likewise, very few in the market are currently talking about inflation and its impact on the real value of investments.
In moments of uncertainty and volatility, the case for certainty becomes even clearer by investing into products that look beyond the noise of markets and provide inflation-responsive income. At La Trobe Financial, our award-winning Credit Fund has a range of products to suit the return and duration profile of many investors. Our highly diversified portfolios are designed to provide low-volatility income regularly across the economic cycle.
Over 93,000 investors have entrusted us with their wealth, and as careful stewards of investor funds we now manage in excess of $9.5 billion. While the macroeconomic environment can be complex, the solution is often simple and we welcome any queries you may have.