Owning the largest stocks has historically been a recipe for underperformance over every period, according to value house Pzena, but the madness of benchmark construction means some investors have few choices but to.
In the near to medium term, the group forecasts “ample opportunity” in the loan asset class to generate higher than average returns while maintaining a minimal risk profile for investors.
The historic outperformance of big tech stocks in the US may look like a global outlier, but many developed markets (including ours) have high levels of concentration risk. That may not be the case for long, with a likely softening interest rate environment set to re-order indexes around the world.
The banks may not be perfect, but their collective role in facilitating a developed ecosystem, combined with the leverage they have through lending and capital allocation, means they often fall within Australian Ethical’s “investible universe”.
A huge benefit has already been realised in the price of the Magnificent Seven and it might be time to take some risk off the table instead of speculating on future fundamentals, according to Lazard.
All major cities had an increase in national property listings during the month of February, but when you pan out and look at the YoY figure, some eye-popping trends emerge.
ASIC made no secret of its assertion that Lanterne operated purely as a “licensee for hire”, which is an ominous reminder for licensees operating with thin risk and compliance standards that the regulator is watching.
The incredible performance of the Magnificent Seven mean investors aren’t always seeing the technological growth that’s driving industries like professional services, construction and medicine.
Every investor wants access to the private markets, and every manager – established or otherwise – wants to help them get it. But when there’s a new product every day, how many of them will be any good?
In real estate, investors need to think more broadly than the traditional sectors of office buildings and shopping centres. Digital infrastructure and industrial property are one way to update the portfolio.
