Opinion

Indices are flush in developed markets the world over, but that doesn’t mean prices have necessarily peaked according to Invesco chief global market strategist Kristina Hooper.

They may be the flavour of the month, and probably for good reason, but are diversified credit funds all that they’re cracked up to be? Will Arnost takes a look at the top performing funds on the Atchison APL.

Lazy portfolios can be overconcentrated, overdiversified, full of yesterday’s winners, devoid of structured asset allocation, full of misallocated positions or agnostic to markets and client expectations. All of this is happening more than it should.

Whether it’s the right agenda, executive engagement, cold catering or the right to put a rambunctious shareholder on mute, there are myriad elements that go into an effective AGM according to those who’ve had their fair share.

Managing a derivative equity income portfolio involves several complex challenges, but the payoff for investors during periods of volatility can be significant according to Atchison Consultants.

Private credit has seen huge inflows in recent years, but contrary to the claims made by some of its advocates it’s not a defensive asset class or a substitute for investment grade corporate and sovereign bonds.

Of all the reasons fund managers get outperformed by the benchmark, Paul Moore explained, the clearest is that they get distracted by macro issues that aren’t particularly relevant to their investments.

First Sentier’s decision to close a number of strategies and pivot towards private markets handily illustrates the pressures facing the Australian funds management scene – and the new period of competition into which it is now entering.

While much ado is made of the science that goes into fund manager research, real assessment puts comparable weight on the art as well according to investment leaders.

Good investing requires real sacrifices, according to Oaktree’s Howard Marks, but you can’t expect to be compensated just for making them.

Despite the inherent risks, the allure of high-yield fixed income funds in 2024 remains strong. They offer a compelling opportunity for enhanced returns against the backdrop of high inflation and a desire for greater diversification.

While some may have gotten a little kick out of watching the tall poppies of the investment landscape get cut down over the last decade, it’s worth remembering that stock pickers provide critical degrees of diversification and balance to the ecosystem. It may have been a tough old decade, but this cohort is nothing if not resilient.