Most financial advisors focus on the wrong thing; themselves. They talk about their qualifications, their passion, their attention to detail and how long they’ve been in the industry.

    To me, those are things that should be a given; not selling points.

    Instead, I like to focus on you so that you learn, understand and are excited about the plan for your financial future.

    After all, they are YOUR financial goals.

    Scroll down to learn more about how I help you achieve them.

Monthly Market Review – June 2017

Monthly Market Review – June 2017

How the different asset classes have fared:

(As at 31st May 2017)

Asset Class 10 Yr
% p.a.
5 Yr
% p.a.
3 Yr
% p.a.
1 Yr
6 Mo
3 Mo 
1 Mo
Cash1 3.9 2.6 2.2 1.8 0.7 0.9 0.4 0.1
Australian Bonds2 6.3 4.5 4.9 2.5 3.2 3.0 2.4 1.2
International Bonds3 7.5 5.6 5.3 2.7 2.1 2.4 1.4 0.6
Australian Shares4 3.4 11.6 6.2 10.2 2.6 6.9 1.3 -2.6
Int. Shares Unhedged5 5.0 18.7 14.2 13.3 7.3 12.1 8.4 2.8
Int. Shares Hedged6 6.4 16.8 10.5 19.3 9.0 12.2 4.2 1.8
Emerging Markets Unhedged7 3.4 10.2 9.5 24.0 14.0 16.6 11.4 3.4
Listed Infrastructure Unhedged8 N/A 18.0 15.3 12.2 11.0 16.6 12.1 4.6
Australian Listed Property9 -0.1 16.3 15.2 2.3 1.5 8.3 2.2 -1.0
Int. Listed Pty Unhedged10 N/A 14.3 12.5 -2.0 -1.2 4.9 2.0 0.4

1Bloomberg AusBond Bank 0+Y TR AUD, 2Bloomberg AusBond Composite 0+Y TR AUD, 3Bloomberg Barclays Global Aggregate TR Hdg AUD, 4S&P/ASX All Ordinaries TR, 5MSCI World Ex Australia NR AUD, 6Vanguard Intl Shares Index Hdg AUD TR, 7MSCI EM NR AUD, 8FTSE Developed Core Infrastructure 50/50 NR AUD, 9S&P/ASX 300 AREIT TR, 10FTSE EPRA/NAREIT Global REITs NR AUD


May was another broadly positive month for investors. Both defensive investments, like bonds, and growth investments, like shares, did well. The exception to this was Australian shares, where a rerating of bank shares led the local market lower.

International Shares

Developed Markets

International share markets continued to grind higher through May. Some of the initial market enthusiasm for President Trump has dissipated as implementation of tax reform and other policy changes proved to be somewhat harder than Trump and, apparently, the market expected.

Nevertheless, the US economy is continuing to show strong momentum. This seems to have been enough to keep US shares running even higher, despite stretched valuations.

European share markets also did well. Eurosceptic candidates in the Netherlands and France were resoundingly dispatched. Economic growth at last looked reasonably solid, and even stubbornly high unemployment rates have started coming down. European equities also represent relatively better value.

Hedged vs Unhedged?

The Australian dollar softened slightly; resulting in currency unhedged international shares doing better than hedged. The fact it was just a softening, rather than a bigger fall is somewhat puzzling.

Two of the main drivers of AUD are the terms of trade (i.e. how much we get for our exports vs how much we pay for our imports) and yield differentials (i.e. what an investor can get here for their money vs off shore).

Both seem to be pointing towards a much lower A$.

The former has deteriorated markedly in the last few months: iron ore fell from above $US90 a tonne in March to the low $50s in June. Yield differentials also are weakening as a support for the AUD.

The chart below shows the yield (in %) a holder of 10-year Australian Government Bonds receives less the yield a holder of 10 year US Government Bonds receives:

The spread between the two is almost as narrow as it has ever been.

Yet, despite these two supports for the AUD being pulled from under it, the AUD is seemingly defying gravity and has hardly budged. Needless to say, we believe investors should continue to hold the international equities portion of their portfolio currency unhedged.

Emerging Markets

Emerging markets again had a good month, and are the best performing asset class this year. As is often the case, this is the opposite of what was supposed to happen according to most market pundits at the start of the year.

The argument then was that rising US interest rates and a rising US dollar would be bad for Emerging Markets. The idea being that companies in the emerging world had borrowed in US dollars; whilst their revenues were in their own local currency. Consequently, when things reversed and US interest rates and consequently the US dollar rose, the sum of their debt would increase and they would struggle to service it. There were also significant concerns about rising levels of protectionism in the US.

As it turned out Trump’s bark was a lot worse than his bite. His summit with the Chinese leader, Xi Jinping, led to a softening in stance as the focus switched to getting the Chinese to take a harder line with North Korea.

Doubts about the actual implementation of Trump’s stimulatory tax and infrastructure spending plans; along with fairly lack lustre “hard” economic indicators out of the US, such as inflation and GDP growth, saw the US dollar rally fizzle. Finally, plain old fashioned value attracted buyers to emerging market equities. In a world where most markets look fair to expensively valued, emerging markets seemed to be one of the few where any potential bad news was at least somewhat priced in.

Australian Shares

In contrast to off shore share markets, Australian equities did not have a good month. A logical reason for this, one would think, was the fall in iron ore; which could potentially lead to weakness in the resource companies that are one of the two sectors that dominate the ASX.

While one might think this...one would be wrong. The ASX 200 Resources sub sector index actually had a positive month: advancing by 1.2%. It was actually the other dominant ASX sector, the banks, that was behind the poor result. The ASX 200 Financial sub sector index returned -7.7% for the month.

The banking regulator in Australia (APRA) has been gradually tightening the screws on bank lending over the last 12 months. The Federal Government also got in on the act, with the bank levy announced in the budget. This in turn drove increased debate over the sustainability of continued strong housing price increases on the East coast. A final factor in the downward rerating of the banks by the markets is the high valuation placed on their shares. The Australian big four banks are some of the most expensive banks in the world. With conditions likely to be less favourable in the past, investors took profits on their bank holdings.

Bonds and Cash

After the initial bond selloff late last year; bond markets have recovered, seeing positive returns this month, and indeed over all time periods. Some doubts have set in with the reinflation hypothesis. Despite the rosy US labour market, US inflation remains stubbornly low.

In cash markets the RBA continued to remain on hold, leaving the cash rate at 1.5%. The Federal Reserve (the “Fed”), however, chose to press ahead with rate hikes despite the inflation data; arguing that the US was at full employment and this would find its way into wage inflation, and eventually, general inflation. Given the lags in the effects of changes in monetary policy on the economy the Fed believes it has to act now to avoid the economy overheating. 

While it attracted less attention than the rate hike, the Fed also announced that it was going to gradually shrink its balance sheet over the next 3 - 5 years to around half the current size. This marks the start of the attempted reversal of the grand quantitative easing (QE) experiment put in place in the wake of the GFC. The withdrawal of this massive amount of liquidity has never been attempted before, so the Fed, and markets, are watching how this will unfold with interest.


The information contained in this material is current as at date of publication unless otherwise specified and is provided by ClearView Financial Advice Pty Ltd ABN 89 133 593 012, AFS Licence No. 331367 (ClearView) and Matrix Planning Solutions Limited ABN 45 087 470 200, AFS Licence No. 238 256 (Matrix). Any advice contained in this material is general advice only and has been prepared without taking account of any person’s objectives, financial situation or needs.  Before acting on any such information, a person should consider its appropriateness, having regard to their objectives, financial situation and needs. In preparing this material, ClearView and Matrix have relied on publicly available information and sources believed to be reliable.  Except as otherwise stated, the information has not been independently verified by ClearView or Matrix. While due care and attention has been exercised in the preparation of the material, ClearView and Matrix give no representation, warranty (express or implied) as to the accuracy, completeness or reliability of the information. The information in this document is also not intended to be a complete statement or summary of the industry, markets, securities or developments referred to in the material. Any opinions expressed in this material, including as to future matters, may be subject to change. Opinions as to future matters are predictive in nature and may be affected by inaccurate assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Past performance is not an indicator of future performance.

This is general information and does not consider your circumstances. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs.

What our clients say

  • I feel much more reassured about the future knowing that, thanks to Zuraida and Rhonda, I now have a plan to make my money work for me and if all goes according to that plan, I should be able to retire comfortably. It's a surprising weight off my shoulders.

    I look forward to working with you both to bring the plan to fruition.



  • We have been consulting with Zuraida for the past 5 years. From our first meeting with her, we were impressed by her friendly yet professional and detailed approach.

    We felt supported and guided by Zuraida’s approach of helping us chart our dreams and aspirations.

    We feel secure knowing that our money is in a good place and doing its work for us.

    Having constant feedback, following periodic reviews which are really inspiring means that we can now focus on the things that we enjoy and not worry about our financial situation.

    In fact we have already seen our income grow and bear fruit and are confident that we are on track to achieve our goals.... thanks to Zuraida.

    Jaya and Mary

    Jaya and Mary

  • The greatest value we get by working with Zuraida Ariffin Wealth Creation is having a written strategic plan to help us achieve our goals. We have honed our attitudes on managing money and we have clarity on how to get what we desire financially and non-financially.

    Zuraida has taken the load off our shoulders and made the ‘invisible’ visible for us – our progress is tracked in real time to give us the confidence that we are headed in the right direction.

    Zuraida is well-qualified, experienced and trustworthy which is an important attribute for someone looking after our financial future.

    Adrian and Lisa

    Adrian and Lisa

  • My dealings with Zuraida in regard to financial advice date back to 1988 when I took a voluntary “redundancy package” from my then employer.

    Over the ensuing years, Zuraida has provided me with ongoing financial advice relating to my superannuation funds up to my retirement in 2001.

    Zuraida also assisted me in setting up my Allocated Pension following my retirement, which now provides me with my retirement income. She also assisted my wife with setting up an Allocated Pension of her own.

    In all the years of my association with Zuraida, I have found her to be honest, knowlegable, and effective in assisting me with financial and investment matters.

    I have no hesitation in recommending Zuraida to anyone who needs financial planning assistance no matter what stage of life they are at.

    Merric & Sue

    Merric & Sue

  • We knew deep down that we needed financial help as all we seemed to be doing was spending money without having anything at the end to show for all our hard work.

    Yet we put off seeing a financial planner because we didn’t want to give up on our lifestyle and fun holidays. We also thought that it would be like speaking to our parents about money; just being told to “Save and stop spending on unnecessary items”.

    We didn’t really have clear financial goals, just a few dreams of what we wanted to do as we grew older. Yet, when we met with Zuraida, she just understood us.

    We never thought that taking a year off from our regular jobs to travel, live and work overseas was possible. Zuraida, however, found a way while also ensuring we still have a solid financial future.

    Kelli and Penny

    Kelli and Penny

Our Services

Cash flow Management

Cash flow Management

It's not about how much you earn but what you do with it.

Debt Reduction

Debt Reduction

I help reduce your debt and save money instead.



My tailored modelling helps you diversify your investments. I recommend investments that suit your objectives and your tolerance to risk.

Personal Risk Protection

Personal Risk Protection

I ensure you have vital financial protection in the event of sickness or accident.

Self Managed Super Funds

Self Managed Super Funds

I help you take control of your super to achieve your financial goals.

Retirement Planning

Retirement Planning

Financial freedom is the goal. I help you realise the retirement you’ve always dreamed about.

My Difference: Real-Time, Monthly Data

  • Regardless of what services help you achieve your financial goals, it is important to track your progress closely and regularly. Many financial advisers will provide a financial plan but few have the capability to report your progress in real-time.

    One of the things that makes me different to other financial advisors is that I can provide you with real-time data on a monthly basis so that you can compare your progress against your written plan.

    Every month, I provide you with a report that compares, with precision, your current balances e.g home loan, investments, etc, against the corresponding projected targets you want to achieve.

    Why not experience the difference?

    Contact me

What to look for in a Financial Planner

  • There are five key things that you should look for in a financial planner are:

    1. rapport;
    2. testimonials;
    3. licence;
    4. membership; and
    5. certification.

    Find out about why I think these are important to you when choosing a financial advisor.

    Learn more

zuraida logo small