Markets

Value stocks are hit harder in market drawdowns but come out of them faster and harder, according to research from Pzena Investment Management.

With many economists expecting the Reserve Bank to start cutting interest rates in early 2025, returns on term deposits could feel the pinch. Private credit is an alternative, but those pursuing this investment option will need to do their homework.

Australian investors are looking past the allure of franking credits and moving towards more unbiased diversification, with ETFs providing a cheap, liquid and highly available access point.

Long the bailiwick of institutional investors, private markets secondaries are now trickling down to the wealth space as the market grows and new vehicles expand access.

The phenomenal growth of private equity’s big players has left a yawning gap in the lower-mid market, which enterprising players like Fortitude Investment Partners are all-too keen to step in to and take advantage of.

With rates well and truly crested and bonds once again showing their strength as a defensive ballast mechanism, Capital Group believes the time might be right for investors to swap out cash-like investment vehicles for investment grade credit.

Idiosyncratic regulations around healthcare product marketing in Australia has led to an under-represented market, which in turn presents an opportunity for savvy investors according to Perennial Partners.

With traditional equity managers losing the fight against passive product providers, diversification into more specialist classes of asset management may provide a more sustainable path. But that’s a pricey endeavour, and easier said than done.

A feeder fund for one of Barwon Investment Partners’ founding strategies has been rewarded for its robust return, securing a top rating from a second major research house.

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.

Real estate income will face challenges in the new value cycle, Invesco says, but investors will have the chance to build growth if they lean into secular drivers and key differentiators.

Even established asset managers are under threat from the violent shift towards low-cost investment vehicles, while allocator preference for platform businesses means they must also bulk up in the private markets.