equity

ASX finishes flat, border closures hit travel, AGL Energy downgrades, weaker open ahead The ASX200 (ASX:XJO) finished flat to begin the week, with news that US politicians finally agreed on a USD$900 billion stimulus package not enough to offset the NSW outbreak and subsequent border closures. Every sector was lower apart from materials and consumer staples, with the latter benefitting…

Crystal balls and fortune cookies Is history an investment guide, the rhyme not repeat version? Those that offer advice on asset allocation rely heavily on past data to support their view of future returns. At its simplest there is mean reversion to trend. Perhaps the challenge is what trend to revert to. There are a…

As 2020 comes to a close, investors of all kinds are faced with what seems to be a once-in-a-lifetime dilemma; how to generate an income in a zero-rate world. Despite clear evidence that investing in stocks solely for their income has generally detracted from, rather than added to, long-term returns, the nature of the Australian…

Trillion-dollar French asset manager Amundi released their November Cross Asset Strategy report last week, with gold bullion and active management among their highest conviction calls. The group is renowned for their institutional investment capacity but particular their ESG or Sustainability credentials. With Pfizer’s (NYSE: PFE) vaccine news coming shortly after the release, CIO Pascal Blanque…

Long-short strategies, which involve giving a fund manager the flexibility to profit when share prices rise or fall, were gaining traction before the pandemic. The trend has continued to accelerate since, but they remain an underrepresented part of most investor portfolios. Whether due to a lack of understanding or perceived higher risk, heightened equity market…

It seems to be a rite of passage these days, investment bankers heading out on their own to start asset management businesses. Times are good. So good that the Australian market is flooded with boutique investment managers ranging from global equity to small cap strategies seeking to build their careers and profitable businesses at the…

Superannuation research house Chant West released their latest update on the performance for the September quarter. Industry groups quickly jumped on the news highlighting the fact that “nearly eight months after the COVID-19 crisis, superannuation funds have clawed back nearly all of the losses”, according to Research Director Mano Mohankumar. Looking closely at the data,…

More than a sport, a financial mismatch There is an awkward, yet in many ways predictable, relationship between investors and the providers of investments. An old-fashioned assessment of demand and supply can be helpful. If equity market exuberance is high, any listing attracts the heat of attention and can be sold to eager investors hoping…

The mention of emerging markets (EM) opens up a messy vista of many complex and troublesome issues, not least in China, representing the beating heart of EM. Add in a lack of central bank independence, volatile currencies, unpredictable governments and it is little wonder that EM struggles with a risk/return balance. Through to the end…

Return of the A$ Corporate Hybrid Market Many of us who are old enough will remember the once-thriving ASX-listed corporate hybrid market as a constant feature of the pre-GFC Australian credit landscape, with the innovatively named Multiplex SITES, Fairfax PRESSES and Dexus RENTS securities (among others) offering returns and features to meet the risk appetites…