Markets

Money managers are rising to meet the capital demands of companies wanting to stay private for longer. These days, though, they’re doing it with a strategic mindset that properly encapsulates a spectrum of investment maturity periods.

Of all the sectors poised to take over this century, venture capitalists are most enamored with green technology and the infrastructure that supports artificial intelligence.

Listed infrastructure companies own and manage key assets across utilities, transportation, communication, and social sectors. Despite the allure of steady returns, consistent income generation and capital growth potential, these investments also carry their share of risks and complexities.

The nation’s rental crisis is deepening, with available dwellings across major cities at just one per cent and the asking price for rents reaching eye-watering levels. According to SQM, seasonal factors are also coming into play.

Liquid alts will only become more in demand if the positive relationship between bonds and equities remains sticky, Harrex explained. Investors will need another diversifier, and the liquidity will only make them more attractive.

There’s nothing mysterious about the performance of private equity, according to Hamilton Lane, and the mundane reasons it does better also means it will keep doing better – even amidst grumbling about valuations.

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.

After a stellar two years for private equity, the global market stalled in 2023 amidst challenging conditions. The switch called for agility, with Neuberger Berman finding other ways to get deals going that put distributions in the hands of investors.

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.