Impacts of Declining Asset Values and High Debt Costs on Financial Returns

Sunday, 14 July 2024, 06:57

The post discusses how CORE open-end funds in Australia experienced an 8.7% negative total return in FY24 due to decreasing asset values and elevated interest rates. Despite challenges, there is potential for continued value deterioration as debt costs and inflation levels remain elevated.

Australianpropertyjournal — Impacts of Declining Asset Values and High Debt Costs on Financial Returns

Key Points:

Declining Asset Values: Core open-end funds in Australia faced a negative total return of 8.7% in FY24.
High Interest Rates: The situation was exacerbated by prevailing high interest rates.
Cost of Debt and Inflation: Challenges persist due to ongoing high levels of debt costs and inflation.

The article sheds light on the implications of these factors on financial returns and the potential for further value deterioration.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Key Points:

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