Analysis

For those who have recommended the Royal London’s Core Fund, especially, the incongruous management switch means they have to explain to clients why it will probably take on a completely different investment style.

There’s no crisis yet, but private wealth CIOs and asset consultants are keeping a close eye on markets after their sudden August selloff. Their advice: stay nimble, stay unconstrained, and look out for “the unbelievable opportunity to invest in a dislocation”.

A panel of investment managers and advisers from The Inside Network’s Investment Leaders Forum painted a relatively positive macroeconomic picture. While market risks remain, the ‘higher for longer’ rate mantra seems less convincing than it once did.

From gloomy retail clients to fretful global institutional providers, investment experts report a glaring disconnect between the risk appetite of investors and the overall economic outlook.

Despite latent geopolitical threats and a persistently hobbled commercial real estate sector, the market presents a fundamentally strong and stable picture according to the Melbourne-based investment consultants.

“Look at a country, a conflict, a region – whatever,” former US general and CIA director David Petraeus said. “And then ask whether it has anything to do with the global economy.”

Cracks are opening up in global economies around the world, with increasing unemployment a bellwether for softening conditions. A tipping point is on the horizon, but central banks remain wary.

In the AI-fueled rally, some companies will win and others will disappear. But while some parts of the market look hideously expensive, their long-term prospects might justify their valuations.

An eventual market correction won’t necessarily be marked by its depth, the famed British investor writes, but by its speed. Caution may come at a price, but Ruffer believes that cost will take on a different perspective by the time it’s been paid in full.

Whether you perceive the RBA’s messaging to be balanced or mixed, the uncertainty serves as a reminder that fixed income is a vital sleeve in any investment portfolio.

Listed asset managers may be undervalued, Morningstar believes, and there are opportunities for well-positioned firms to rebound as the new interest rate cycle takes effect. But the mid- to long-term outlook may be more problematic.

As market conditions turn, private debt is expected to lead the charge of private capital disbursement across the globe, with special purpose vehicles increasingly at the heart of deals according to a new study.