It’s possible to get equity-like returns from insurance-linked securities with much lower volatility. But a supposed asymmetry of information in the market keeps investors from allocating.
The functionality of value investing hinges on one important and fundamental premise: that humans are fallible and emotional operators that over-react, misjudge and fall victim to overconfidence in their own assessment abilities.
The vast majority of quality asset managers will go through periods of five years of underperformance or more, which makes it difficult for that firm to take smart value bets and hold them until maturity beckons.
As many as half of all Australian private lending managers are using leverage to juice their returns, according to Challengers Investment Management, exposing themselves and their investors to mark-to-market risk.
Diving into alternative investments can be a daunting prospect, but a rewarding one for advisers looking to supplement their growth sleeve and add fresh diversifiers. A panel discussed some tips for those starting out on their alts journey.
Advisers may be holding back from private equity investment because they have an exaggerated view on the liquidity risks involved, but providers offer more liquidity now than ever, and smart advisers are capitalising on this.
You don’t need the world to end to start investing in stressed and distressed debt, according to RBC BlueBay, but it helps. And what looks to be a multi-year uptick in defaults is creating plenty of opportunities.
Lack of liquidity and transparency have long been sticking points in retail uptake of private equity, but the industry is changing its ways even as an education challenge remains.
An elevated market is a good thing, but investors that take a valuation mindset into asset allocation need to be wary of what that means for prices. “Chasing momentum” is a real danger, says Australian Ethical’s Mark Williams.
For investors thinking holistically about future wealth, adding B Corp accreditation to the provision of investment and education bonds makes a compelling offer.