Australian fixed interest yields advanced on stronger than expected economic growth and concerns about inflationary pressures.

The US economy continued to struggle with weakening economic growth, and rising inflation. US home sales fell by the largest amount in 13 years.

Australian listed property delivered one of its worst monthly returns since 1979 on valuation concerns. This performance was unusual against the backdrop of a positive return from Australian equities.

Australian equities returned an impressive 3.3% as M&A activity continued and legislative changes to the Media sector were brought forward.

The Australian dollar rose sharply during the month reaching 10 year highs, hampering the return of unhedged international equities.