Axiome Quarterly Report


In this report our Investment Market Review looks at the main events in the markets over the past three months. The past quarter has seen equity prices bounce back from the uncertainty and fall in prices that were seen at the end of 2015. However focus remains on commodities both domestically as dairy prices remain low and abroad with oil regaining some of its recent price falls. Monetary policy is also highlighted as inflation continues to hover at a mere 0.1%.

In our Investor Education article we look at the importance of defining asset classes when constructing a diversified portfolio. Sorting financial securities on a statistical basis, rather than an industry one, provides the best basis for a diversified investment strategy. We explain why this is important in maintaining risk exposure that is in line with investor objectives and the danger of misinterpreting what defines an asset class.