VEA - IAF: Good Run In 2024 So Far But Gains Could Be Capped From Here
2024-05-16 18:01:39 ET
Summary
- IAF has outperformed its EAFE benchmark by 800bps over the past 6 months, generating returns of over 24% in total.
- Recently revised inflation expectations, and the higher-for-longer rate stance is not likely to reflect well on household finances and Australian banks which dominate IAF.
- Valuations of IAF are now pricey, and it has now reached a price terrain which previously served as resistance.
Introduction
The abrdn Australia Equity Fund, with almost 4 decades of listing history, is a close-ended fund ('CEF') that focuses on a small pool of stocks (around 33 , most of which are large-caps with an average market-cap of $33bn ) that are listed on the Australia Stock Exchange....
IAF: Good Run In 2024 So Far, But Gains Could Be Capped From Here