Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

UniSuper

  •   18 April 2024
  •      
  •   

UniSuper Investment update with John Pearce – April 2024

18 Apr 2024: The Australian and US share markets continued their overall strength through the third quarter of FY24, but so far, April has been more volatile. In his latest investment update, Chief Investment Officer John Pearce discusses the market rally and recent market jitters.

Key points in John Pearce’s video:

  • Share markets were strong until the end of March, but April has been jittery.
  • The strength in markets was driven by strong employment (which means strong incomes), the prospect of cuts in interest rates and Artificial Intelligence (AI).
  • Listed Property has continued its strong run, bouncing back from a poor start to the financial year. Property benefits from the prospect of interest rates on hold or being cut.
  • What's been notable about the rally to the end of March was that it was broad based, compared to last financial year which was all about the Magnificent Seven.
  • The AI boom continues to reap market rewards. Nvidia has been an exceptional performer—in announcing its results, it not only met but comfortably exceeded expectations.
  • In Australia, our market hit all-time highs despite high levels of household debt relative to annual income. Why? Only a third of Australian households have a mortgage, our employment market has been strong, and the wealth effect - our assets are growing strongly in value.
  • The market jitters in April have been driven by a mix of geopolitical tensions in the Middle East and sticky inflation, but critically, the market has “got ahead of itself” following a sustained run of positive news.
  • Recent activity shows that even a little bit of bad news can have an impact on share prices. But while there might be some short-term April nerves, we think 2024’s market rally is still on solid ground.
  • We’re pleased to highlight some quality long-term investments that we’ve recently made: a 50% interest in a development site at Burra Park, adjacent to the new Western Sydney Airport which will begin 24/7 operations in 2026, and an investment in the Macquarie Green Energy and Climate Opportunities Fund, a fund that invests in technologies to support the transition to net zero and help meet sustainable energy needs in Australia and overseas.

Watch the video here (13 mins)

 

banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Latest Updates

Are franking credits hurting Australia’s economy?

Business investment and per capita GDP have languished over the past decade and the Labor Government is conducting inquiries to find out why. Franking credits should be part of the debate about our stalling economy.

Superannuation

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

Have Apple and Google reached the beginning of the end?

It might be hard to imagine a world where Apple and Google aren’t dominant, but disruption often starts with tiny cracks. AI's emergence into the mainstream might have set the stage for a new generation of leaders.

Superannuation

Did retirees lose out when they accepted defined benefit schemes?

Defined benefit pensions were designed to offer security in retirement. But new tax policies and arbitrary limits now erode their value - especially for Australians who contributed their own savings to these plans.

Property

Why Australia's agricultural land boom has stalled

Farmland prices have flatlined, bringing one of the most dramatic rural property cycles in Australian history to an end. The market for agricultural land now seems to be entering a new and more nuanced phase.

Property

The retail property niche offering income and growth

Neighbourhood shopping centres have fought off one perceived threat after another. What's more, they continue to offer secure income from blue-chip firms and other tenants linked mostly to essential spending.

ASX plans to attract more IPOs don’t go far enough

High-profile Australian stock market listings, like Guzman Y Gomez's IPO in 2024, are rare. ASIC aims to streamline the IPO process to boost listings, but faces barriers like share structures and governance.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.