Digging into the defensive toolkit
A well-articulated investment philosophy is the cornerstone of prudent financial advice. It defines not only how capital should be deployed, but more importantly, why.
Exposure compression: Why institutional portfolios move in sync, when they shouldn’t
Despite aiming to deliver “diversified” results, most balanced portfolios pivot around the same risk levers and dominant names. It means exposure compression, benchmark design and regulatory benchmarking concentrate risk into predictable choke points – the MAG-8, Australian banks and US dollar – which passive investing reinforces.
Built for advisers: Inside Mercer’s scalable and tailored portfolio platform
In a market environment marked by growing complexity, evolving client needs and tighter margins, the ability to design investment portfolios that are both scalable and highly customised has never been more valuable. That was the central message from Rebecca Jacques, head of wealth management investment solutions at Mercer, as she addressed the insiders community during a panel session at The Inside Network’s Investment Leaders Forum.
‘Just a little crazy’: SMSF retirees continue to shun fixed interest investments
Institutional investors get it. So do some financial advisers. But for most SMSFs, sovereign and corporate debt is the forgotten asset class – despite the defensive benefits it can deliver.
How Pzena is ‘picking up gems’ from the China wreckage
Valuations are so high in India that people need to have “completely given up hope” before Pzena wades in and makes an investment. It’s shopping in China while it waits.
Innovation in practice: Thematic investing and managed accounts
To provide a value proposition that stands apart, wealth management practices must be adaptive and consider the range of investment products available. Two popular options show how practices can cater to evolving client needs.
Once maligned, derivatives shine as investors rethink volatility
Derivatives should not be a "dirty word" for investors looking for better returns, capital protection and diversification at a time when volatility and higher inflation appear here to stay, according to Atlantic House Group's Andrew Lakeman and Global X's Evan Metcalf.
Credit primes as a defensive stalwart in higher-for-longer environment
As the impacts of rising interest rates continue flowing through the economy, credit remains one of the most reliable and attractive ways to add defensiveness to a portfolio, strategists from SQM Research and ICG told a recent Inside Network symposium.
Long-term returns data compelling, but systemic approach to small caps required
Small cap investing has considerable upside, which the long-term returns data shows. But many small caps are less than quality grade, and the managers picking them can be rife with bias.
Currency key to investability, as shorts pay off
An actively managed global fund manager said something along the lines of "the challenge in 2022 won't be in outperforming the index, but rather in generating a positive return
Benign risk of default drives credit opportunity
History has shown that investing into bank loans and credit markets at or near current valuation levels has delivered high single digit and double digit returns over the long-term.
Local dollar's slide prompts hedging question
The Australian dollar could fall to US65 cents by the year's end as higher interest rates in the US and capital inflows push the US dollar higher.
Passive funds dominate ETF flows despite volatility
BetaShares this week released its Half-Year Review of the exchange traded fund industry, with a few surprises in store for one of the most popular parts of the investment sector.
Lazard, PM Capital top the tables for Oz equities
A pandemic, a few supply-chain disruptions, a war in Europe, rising energy prices, climate change and soaring inflation. What more could you ask for?
Time to reset fixed-income portfolio construction
Concerns over rising inflation and a global growth slowdown have many financial advisers re-positioning client portfolios away from risk and towards safety.
HMC Capital launches real-asset-focused alternative strategy
High-conviction alternatives manager, HMC Capital has announced the launch of its new HMC Capital Partners Fund 1, which will seek to invest in private and public businesses with real-asset backing.
Geopolitics to trump inflation as biggest risk of 2023
In a year shaped by geopolitical tensions, a pandemic, war, inflation and supply-chain disruptions, the number one threat perceived by the general public remains inflation.
Global growth downgraded as Ukraine drags
Morgan Stanley have released their note covering the 2022 Midyear Economic Outlook. Most major economies, including the U.S., Europe, the United Kingdom and China, are each tracking toward GDP growth that will be half that of 2021.
Positioning portfolios for fabled 'soft landing'
While several weeks ago now, the threat of 75 basis point hikes is no longer in the future, it has and will likely happen more than once in 2022.
Global asset portfolios to deliver 5% a year: BCA
New research from BCA Consulting predicts Australian equities will outperform global equities over the next 10 to 15 years.
