The Latest Quarterly Performance Results for Crescent Wealth
We are pleased to present our quarterly update on investment performance for the Crescent Wealth Superannuation Fund, covering the one year period ending December 31, 2023. These results reflect our positive momentum from the previous quarterly update, and our commitment to delivering positive, Sharia compliant returns for our members.
Overview of Performance:
The annual return to 31 December 2023* for our investment options are:
• Crescent Wealth Super Balanced Global: 10.88% p.a.
• Crescent Wealth Super Growth: 8.47% p.a.
• Crescent Wealth Super Balanced: 7.48% p.a.
• Crescent Wealth Super Conservative: 6.01% p.a.
* Option performance is net of investment management fees and tax but gross of administration fees
These returns demonstrate the commitment of our investment team to delivering positive, Shariah compliant returns.
These returns demonstrate the effectiveness of our investment strategies and the dedication of our team.
Market Conditions
The global equity markets performed much better than expectations in 2023 as S&P 500 closed out 2023 with a gain of 24%. Meanwhile ASX too finished on a strong note with the S&P/ASX200 ticking up 12.4% for the year 2023. These strong returns were on the back of resilient global economy and healthy corporate earnings. Moreover, ease in inflation compared to 2022 levels and anticipation of Federal reserve and other global central banks eventually easing their monetary stance kept the markets mostly buoyant throughout 2023.
Strong market performance in 2023 with inflation still the key talking point
Markets underwent a challenging period early in the quarter, due to mounting concerns about persistent inflation and Middle East troubles which resulted in volatility and higher oil prices. Momentum shifted in late October and throughout November with declining oil prices, lower bond yields and decreasing inflation boosting confidence, with strong market returns in November.
This rally continued throughout December as the US Fed made it clear that additional rate hikes were unlikely, this confidence very quickly spread throughout global markets supported by robust economic activity.
Throughout much of the year, the Australian market lagged Wall Street, where the price-to-earnings ratio for the S&P 500 hovered around 22, and 12 months return to December 2023 exceeded 24%. Nevertheless, the Australian share market finished the year up 12.4%. However over 97% of 2023’s performance occurred in those last two months. Without them, 2023 would have been a disappointing year.
Looking Ahead
Although inflation has come down, we do flag the risk of monetary policy remaining tighter for longer than what market seems to be anticipating. Recent US CPI figures (Feb 2024 CPI at 3.8%, up 0.4% MoM) have indicated that inflation remains sticky and as a result rates may stay higher for longer than what was being anticipated at the start of 2024. As a result US 10-Year bond rate is back well above 4% and may portend to further market volatility. This brings cause for us to look ahead to the next few months with some caution. From our vantage point, we continue to like quality assets which are in line with our investment objectives of preserving and steadily growing the wealth of our members in the long term.
Conclusion
We're proud of these latest returns and are grateful for our members’ trust and support. At Crescent Wealth, we're dedicated to delivering Shariah compliant returns to help our members build their superannuation savings. We look forward to updating you again next quarter.
In 2013, Crescent Wealth Super became the first Shariah-compliant super-fund. We understand that your superannuation investment is more than just about investment returns; it's about aligning with your beliefs and values while securing your financial future so you can retire with dignity.
If you are interested in switching to a super fund that displays your Islamic values of ethical and responsible investment, call us on 1300 926 626 or click below.
