Back in June 2019, the Reserve Bank (RBA) Board meeting minutes stated that “households are net borrowers in aggregate”, which contributed to their view that on balance “a lower level of interest rates was likely to support growth in employment and incomes and promote stronger overall economic conditions.” I subsequently wrote to the RBA and sought clarification, given that households are not net borrowers in aggregate. Their response advised that the comment was in reference to interest bearing net borrowings, rather than total net borrowings. Perhaps this was the intention of the authors, however the lack of this qualification in the minutes makes the statement incorrect – households are in fact large net savers in aggregate.

Since 1 July 2018, downsizer contributions have afforded eligible older Australians the opportunity to top up their retirement savings where their existing balance leaves them concerned about the sustainability of their lifestyle through retirement. It had been observed that older Australians were potentially being discouraged from downsizing hones that no longer met their needs, the result being that many larger family homes were being occupied by singles or couples.

Markets struggled to build momentum early in the month of December as the emerging and enigmatic Omicron variant of the COVID-19 virus continued its spread across the globe. As understanding about the new strain developed (particularly its highly infectious but less potent nature), investors were reassured that economic growth would not be stalled as governments widely exercised restraint with reinstituting lockdowns and restrictions abroad.

[VIDEO] The entire team at Arrow wish you and your family a safe, enjoyable and relaxing Christmas break.We're very much looking forward to seeing you again face to face in 2022.

[VIDEO] Investment Analyst Ryan Synnot reviews the Arrow Global Active Portfolio performance and changes in 2021.

[VIDEO] Investment Analyst Ryan Synnot reviews the Arrow Diversified Real 4.5 Portfolio performance and changes in 2021.

[VIDEO] Investment Analyst Ryan Synnot reviews the Arrow Diversified Real 5.5 Portfolio performance and changes in 2021.

[VIDEO] Private Client Adviser Mathew Ashton introduces ASIC’s new Director Identification Number system, its purpose, and the steps to apply for your own.

After a strong recovery in global markets over the prior month and stable performance for most of November, the month ended with volatility and the worst one-day decline of the year, as news of the spread of the new Omicron Covid-19 variant drove a sharp sell-off in global equities.

Global markets saw a recovery in performance during October from a volatile prior month, with developed markets returning 1.65%. More broadly, Asian and emerging markets continue to face pressure, with equities detracting there by 4.3% and 2.9% over the month.

[VIDEO] Head of Asset Management, Simon Lewis, and Portfolio Manager, Nick Emery, share an update on the recent performance, changes and impact of funds within the Arrow Socially Responsible Portfolio.

With this week's timely announcement by the Federal Government of a net zero emissions by 2050 target, and it’s heavily focus and reliance on emerging clean technologies, the opportunities in and significance of socially responsible investing has never been greater.

The image below shows the impact of funds invested in the Pengana WHEB Sustainable Impact Fund via the Arrow Socially Responsible Portfolio in 2020.

September saw an evaporation to the gains made in global markets over the last three months, with developed and emerging markets receding by 3.1% and 2.8% in Australian Dollar terms, respectively.

Contraction in performance over September was primarily driven by fears of a global financial contagion stemming from the worlds most indebted company, the Chinese based Evergrande Group, after news that it was renegotiating coupon repayments on its US$300b of outstanding debt.

Global markets continued their climb into August, with emerging markets slightly outperforming developed markets as the region recovers from a sharp sell-off driven by Chinese equities in late July. Developed markets continue to be supported by economic stimulus and vaccination efforts, despite unabated trends in daily case rates across developed economies.

In Australian dollar terms, small cap global equities continue to be the best performer over the last twelve months, whilst their larger cap counterparts continue to outperform both small cap and emerging markets over the longer term.

[VIDEO] Managing Director and Private Client Adviser Peter Leggett outlines the importance of thorough and considered estate and family succession planning.

Global Covid-19 cases continue to rise with numbers surpassing 197 million cases at the end of July, an increase of 14 million in the month. Delivery of vaccines continues to rise with 3.8 billion doses delivered globally as at the end of July, with the European Union saying that 200 million Europeans have been fully vaccinated. Vaccination remains key, as countries with high vaccination rates are showing lower hospitalisation and death rates even with increased infection rates.

Key economic indicators continue to improve generally, with several leading economies reporting above expected increases in inflation. Markets have also continued their positive momentum thus far in 2021.

Elder abuse has been defined by the World Health Organisation as 'a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person'.

Delivery of vaccines continues to rise globally; Germany now reports that over 40% of the population have received at least one dose. The EU has also recommended the relaxation of travel restrictions for those fully vaccinated with an EU-approved vaccine. Increased mobility is a rising theme globally as vaccination rates rise. Australia is one exception, the initial advantage the country had in the fight against COVID has eroded somewhat due to a lagging vaccination rollout.

The COVID-19 pandemic’s impact upon the way we live our lives has been significant. Reduced travel, a boom in working-from-home, reduced demand for experiences and services, increased demand for food, technology and other goods are just a few examples.

The chart below highlights how an investment of $10,000 in a selection of different assets* have performed relatively since the start of 2020 through to the end of May 2021.