After the Hayne Royal Commission many advisers decided to steer away from large dealer groups in favour of becoming self-licensed. In the last six months, however, that trend has taken an abrupt turn.
Since our 2020 Strategic Asset Allocation (SAA) review in June, we have remained modestly underweight the SAA reflecting concern about prospects for the asset class in the current environment. Recently, we reduced this exposure further, as our conviction has built that real estate will underperform the broader equity market over the medium term. Below, we outline our thinking around this in more detail.
Tom Schubert is Managing Partner of Drummond Capital Partners. Drummond provide active, global multi-asset investment solutions to financial intermediaries and family office clients. Tom co-founded Drummond and has 15 years' investment management experience and contributes to Drummond's strategic and tactical asset allocation processes, manager selection and portfolio construction. Tom also leads client engagement, using his wealth management experience to work with clients in developing their optimal investment solution.
To provide a value proposition that stands apart, wealth management practices must be adaptive and consider the range of investment products available. Two popular options show how practices can cater to evolving client needs.
Derivatives should not be a “dirty word” for investors looking for better returns, capital protection and diversification at a time when volatility and higher inflation appear here to stay, according to Atlantic House Group’s Andrew Lakeman and Global X’s Evan Metcalf.
As the impacts of rising interest rates continue flowing through the economy, credit remains one of the most reliable and attractive ways to add defensiveness to a portfolio, strategists from SQM Research and ICG told a recent Inside Network symposium.