Synchronised economic growth globally
AMP Asset Management presents its views on the world markets.
Tuesday, July 20th 1999, 12:00AM
The world is finally heading back towards synchronised economic growth, according to AMP Asset Management's head of investment strategy Paul Dyer.In a broad-brush presentation accompanying the release of AMPAM investment results, Dyer said that 1999 "was a period when growth has returned around the world".
"Right across Asia, output levels have picked up to pre-crisis levels. The Australian economy has barely suffered right throughout the crisis and, given our trading patterns, that has provided quite an impetus for our economy".
Dyer didn't subscribe to the view that New Zealand's economic growth was about to wane, either: "We think the momentum, if anything, is increasing in New Zealand and the risks of the economy stalling over the next year are relatively small."
Nor was he concerned about any instability in the market from the impending election. "In my opinion, it's very easy to overstate the impact of political developments. In our experience (they) have been fairly transitory."
Dyer said AMPAM had taken a reasonably neutral stance on equities over the past year and had a "bit of a tilt" towards New Zealand. In fact, star pupil for the June year was the active NZ equities trust (32.9 per cent gross).
Also describing the annual returns on the diversified superannuation funds as "very positive", AMPAM managing director Murray Gribben said one of the key factors behind the results was the tax effectiveness of the equities held on a passive basis.
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