Asset Allocation

2022 has been a difficult time for most investors, but for none more so than bond fund managers. The New Year’s resolution of global central banks to (finally) aggressively combat accelerating inflation has seen an incredible surge in bond yields in Australia and around the world. A case in point is the Australian 10 Year…

The passive vs. active debate remains alive and well, particularly in the larger company universe, where being different to the index is quite a challenge, and in many cases, a career risk. The consistent standout among the quarterly passive vs. active reports, however, has been the Australian smaller company sector. Globally recognised as companies valued…

Global smaller companies, defined broadly as those valued anywhere between $300 million and $5 billion, are offering one of the most compelling valuation opportunities in 20 years, says Simon Wood of Ausbil Investment Management. Speaking at The Inside Network’s leading Equities and Growth Assets forum this month, Wood highlighted the unique opportunity set and its…

“Where all men think alike, no one thinks very much.” – Walter Lippman This quote was the premise of one of Australia’s longest-standing investment managers, Paul Moore, when presenting at the industry-leading Inside Network Equities and Growth Assets Symposium this month. Commenting on the seemingly never-ending and ubiquitous “groupthink” that pervades investment markets, he suggests…

We spoke with Stephen Coltman, Investment Manager within the Alternatives team at abrdn on the growing importance of portfolio hedging amid growing uncertainty and investor unrest. During times of falling equity markets, rising volatility and elevated drawdowns, Coltman is tasked with delivering positive returns. Speaking about his strategy and overlay, he says, “It’s really designed…

MSCI has recently examined how different equity factors have performed since Russia’s invasion of Ukraine and found that stocks related to oil rallied alongside others that were metal-related. In terms of the broader economic environment, the value factor is expected to outperform in this period of rising inflation. Russia’s invasion of Ukraine in the first quarter…

It’s time for investors to move heavily into alternatives. That’s the message Evergreen Consultants are sending advisers. Angela Ashton, founder and director of the investment consulting firm, says it is time for investors to explore the alternatives sector more broadly, including gold, commodities, private credit, total-return multi-sector funds and real-asset funds with holdings such as…

Leading responsible and sustainable investment manager Australian Ethical (ASX:AEF) this week announced their intention to merge with industry fund Christian Super. If completed, the combined entity would manage some $9 billion and serve around 100,000 members across the country. Christian Super, and similar religious-leaning super funds were some of the earliest adopters of the ESG…

Floods, fires, landslides, earthquakes. It doesn’t matter where you are in the world, the impacts of climate change are becoming more pronounced, with many still struggling to understand the implications they have for various asset classes. Long the stalwart of institutional portfolios, commercial properties are among the oldest asset classes in the world, having been…

“Bonds won’t exist in 10 years,” were the words of Vimal Gor, one of the most well-known and respected fixed income managers in the country. He was announcing his departure from Pendal Group, where he had managed as much as $22 billion in fixed income strategies over a multi-decade career. In recent years, Gor has…

Following-on from the COP26 meeting last November, there has been a tectonic shift towards “green” asset investments to ensure that the (voluntary) national goals of the Paris Agreement are met, and there is a rapid reduction of carbon-dioxide emissions to ‘net zero’ levels. The Australian Financial Review said that as of September 30, “sustainable funds…

With media news and headlines dominated by the deepening crisis in Ukraine, this year’s interim earnings season was dealt an additional driver. All in all, though, it was a relatively good reporting season, with companies cashed-up and the majority recording a profit, with about 67 per cent of companies lifting profits. According to specialist equities…