Welcome to the November 2023 Edition of the BFG Report
Don’t miss out on the Energy Rebates!
Hold a Commonwealth Seniors Health Card (CSHC)? Receiving a Family Tax Benefit? Then you may be eligible for energy rebates.
While the payments vary from State to State, in NSW CSHC holders may receive up to $700 per household in a combination of State and Federal energy rebates for the 2024 Financial Year. However, these payments are not generally automatically paid. You will need to apply.
Applications can be made online, paper-based or you may prefer to arrange an appointment at Services NSW (or other State equivalents) to discuss the energy rebates and other possible entitlements.
Regardless of your circumstances it may be worthwhile to check with Services NSW, or equivalents on your eligibility for general savings and rebates.
Here are some links to assist:
Information on rebates and concessions
https://www.service.nsw.gov.au/services/concessions-rebates-and-assistance
Savings Finder
https://www.service.nsw.gov.au/campaign/savings-finder
How to book an appointment with a Savings Finder Specialist
https://www.service.nsw.gov.au/transaction/book-a-savings-finder-appointment
How to apply for the Seniors Energy Rebate
https://www.service.nsw.gov.au/transaction/apply-for-the-seniors-energy-rebate#how-to-apply
Investment Market Review – Quarter ended 30 September 2023
Summary
- According to the OECD, the global economy proved more resilient than expected in the first half of 2023, but the growth outlook remains weak.
- With monetary policy becoming increasingly visible and a weaker-than-expected recovery in China, global growth in 2024 is projected to be lower than in 2023.
- While headline inflation has been declining, core inflation remains persistent, driven by the services sector and still relatively tight labour markets.
- The world economy is expected to grow by 3.0% in 2023, before slowing down to 2.7% in 2024. A disproportionate share of global growth in 2023-24 is expected to continue to come from Asia, despite the weaker-than-expected recovery in China.
Markets
- Share market performance was poor for the September quarter. The S&P 500 lost 3.7%, while the Australian ASX 200 lost around 2.2% on a price basis.
- Global shares ex-Australia lost ground over the quarter, producing a return of -0.4% on an unhedged basis. The result was worse for hedged global shares, losing 2.8%.
- In Australia, Value and Value-Weighted were the best performing styles for the quarter. Globally, all sectors were negative, with Value-Weighted and Value being the best performers i.e., least negative. Energy stocks were relatively resilient over the quarter, and one of the few bright spots in a quarter where few sectors avoided falls. Most of the so-called “Magnificent Seven” – Apple, Microsoft, Alphabet, Amazon, Tesla, Nvidia and Meta – declined, weighing on the overall market.
- Within Fixed income markets, Australian government bonds lost ground, while credit produced a solid return for the quarter. The main Australian fixed interest index, the Bloomberg AusBond Composite 0+ Years Index was down 0.3%, while the Bloomberg AusBond Credit 0+ Years Index gained 1.3% for the quarter.
- Global High Yield bonds, as measured by the Bloomberg Barclays Global High Yield Total Return Index Hedged into AUD gained a mediocre 0.2% for the quarter
Asset class performance to 30 September 2023 (total returns in AUD)
| Asset Class | 1-mth | 3-mth | 6-mth | 1-yr | 3-yr | 5-yr | 7-yr | 10-yr | 15-yr | 20-yr |
| Australian equities (S&P/ASX 200) | -2.8% | -0.8% | 0.2% | 13.5% | 11.0% | 6.7% | 8.0% | 7.4% | 7.4% | 8.6% |
| International equities | -4.0% | -0.4% | 7.2% | 21.6% | 11.9% | 9.8% | 12.1% | 12.5% | 9.6% | 8.2% |
| Australian REITs | -8.6% | -2.9% | 0.4% | 12.5% | 4.7% | 2.5% | 3.2% | 7.3% | 5.0% | 5.3% |
| Australian bonds | -1.5% | -0.3% | -3.2% | 1.6% | -3.9% | 0.3% | 0.7% | 2.3% | 3.8% | 4.2% |
| Cash (AUD) | 0.3% | 1.1% | 2.0% | 3.6% | 1.4% | 1.3% | 1.4% | 1.7% | 2.6% | 3.5% |
Sources: Bloomberg, IOOF calculations
* AUD total returns as at Sep-23 assuming reinvestment of dividends unless otherwise specified.
** Returns reflect index performance excluding any fees; Actual ETF/managed fund performance will vary due to both fees and tracking error.
*** Years 1 to 20 reflect the annual return over the period.
High yielding internet savings accounts
| Financial Institution | Interest Rate** | Financial Institution | Interest Rate** | |
| Rabobank | 5.75% | Move Bank | 5.50% | |
| ME Bank | 5.55% | Teachers Mutual Bank | 5.50% | |
| ING Direct | 5.50% | BOQ | 5.40% |
** Rates may be inclusive of introductory rates and are subject to conditions and change. Rates are correct as at 29/11/2023.
| Important Note – The BFG Report is published for your interest and every effort is made to ensure it is accurate and contains general securities advice only. It is not possible, when preparing The BFG Report, to take into account individual clients’ investment objectives, circumstances, and needs. Before acting on any information or advice contained, expressly or implicitly, in The BFG Report you should consult a Representative of Baldry Financial Services Pty Ltd trading as BFG Financial Services (“BFG”).
No part of The BFG Report may be reproduced without the written consent of BFG in each case. BFG, its employees or any associate are not liable for any loss or damage arising as a result of any reliance placed on the contents of The BFG Report. All such liability is excluded apart from any liability which the law does not allow to be excluded. |
