Jay Sivapalan, Head of Australian Fixed Interest, looks at the 2020/21 financial year, the key events, implications and outlook for the year ahead.

Key takeaways:

  • Despite ongoing COVID-19 outbreaks, the commencement of vaccination programs and fiscal easing helped buoy investor sentiment.
  • Equity and credit markets performed strongly on these accommodative policy settings.
  • Our expectation is for the Australian economy to expand by around 4.75% over the 2021 calendar year.
  • We are actively managing our portfolios in this environment where risk-free assets, like government bonds, are providing very low yields and the prospect of rising inflation and the eventual normalisation of monetary policy settings is on the minds of market participants.