Dear Sir/Madam,


Just a week to go until another Christmas is upon us. Wow that year really flew by!  As we prepare to celebrate Christmas day, our thoughts and prayers go out to the many victims of this year’s crazy bushfires, victims of the Whakaari White island volcanic disaster, and farmers suffering the effects of the worst drought for many decades. 

We might all be looking to wind down in the next week or so but the markets don’t show any signs of slowing down just yet. Last Thursday and Friday were significant days for different reasons. Thursday was the day that Donald Trump struck a trade deal with China which he calls phase 1. Some positive solid ground that the markets have been long waiting for. Friday saw the momentous election victory for Boris Johnson in the UK which cements a mandate now for Brexit and has delivered him a majority government. A stunning victory for democracy and again providing stability and solid ground for markets. As a result, the UK market went up 2.5% on Monday night. Our market responded in Australia on Monday by gaining 1.5%. We believe that these two factors along with the commencement of the US election pantomime and low interest rates worldwide, will be supportive of markets for the immediate term. However, this could all change somewhat if Trump gets impeached.

The Chrysalis portfolios have had a record-breaking year this year. In my 23 years running client portfolios, I have rarely seen performance returns this high. November 18 to November 19 our Chrysalis balanced portfolios delivered 17.58%, Our Chrysalis growth portfolios delivered 18.39% and our Chrysalis high growth portfolios delivered 19.93% net of fees. The December to December figures could well be in excess of 20% now given that big rise yesterday. For our Qantas staff clients, your Chrysalis portfolio returns are over 6% more than Qantas super has delivered this year over the same timeframe. These results are at the top of the industry and the Chrysalis Investment committee are really excited and proud to deliver these results to you. 

But the flipside is that they will not last. Yesterday Josh Frydenberg and Mattias Corman slashed $2 billion off the national budget projections as business is slowing in Australia and around the world. We expect the reserve bank of Australia to drop interest rates further again next year by up to 0.5% taking us to an affective zero interest cash rate. It’s the RBA’s one last attempt to stem the speed of a slowing economy and try to stimulate some growth. We are watching carefully to see any systemically issues that need a response in your portfolios.

We are well progressed through the huge project of switching many of our clients into the new separately managed accounts (SMAs). This structure will allow us to much more nimbly and speedily respond to portfolio allocation adjustments necessary if we need to respond to any market, regulatory or economic changes. Thank you to all of our clients who have been quick to respond to the advice email. There is lots happening behind the scenes now with teams of additional people in our office and at Wealthtrac to re-allocate portfolios to these SMAs. In fact, it probably resembles the elves at the North Pole busily packing Christmas presents for kids Santa sacks right now!

The ANZ trustee has recently also made a little Christmas present donation to many of our clients who hold Wealthtrac super or pension accounts. This was an unexpected and rare distribution as part of allocating cash amounts in the course of the sale of ANZ‘s trustee business to IOOF which is currently underway. 

So, as we head into Christmas and a summer holiday season across Australia, we are optimistic at Chrysalis that 2020 will be another good, albeit subdued, investment performance year for your portfolios.

We will be closing the Chrysalis office this coming Friday at midday and will reopen fresh for a new year on Monday 13 January.

Thank you so much for the nearly 40 referrals we received this year. We look forward to being of service to you in 2020 and helping many of you with redundancy and transitioning into retirement. 

On behalf of the entire growing Chrysalis team, we wish you every blessing for a safe, fun and relaxing Christmas and great successes and achievements in 2020.

 

Chrysalis Lifestyle Planning

Chrysalis Advice team

Chrysalis Lifestyle Planning

Website: www.chrysalislp.com.au

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Any Questions?

Email the Chrysalis Advice team now.
or call +61 2 9972 2633 between 8.30am – 5.00pm from Mondays to Fridays.

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