Bruce Murphy
Insight Investment, a A$1.4trn1 global asset and risk manager, says Australian investors can seek to narrow downside risks posed by ongoing market uncertainty by deploying various strategies designed to reduce risk, boost portfolio efficiency, and deliver outcomes commensurate with an investor’s goals and risk appetite.
Insight yesterday outlined several operational and environmental challenges that, combined, create a complex puzzle for Australia’s institutional investors and financial advisers guiding their retail clients. These challenges include long-term demographic shifts of an ageing population, regulatory changes and environmental, social and governance expectations, through to macro-economic challenges posed by the Ukraine war, the pandemic, and their global economic consequences.
Bruce Murphy, Director, Australia, and New Zealand at Insight, said complex challenges call for innovative solutions. “We believe that Insight’s risk-focused investment thinking can support Australian investors in the current environment. Looking across the areas of market, regulatory and demographic uncertainty, we can readily identify areas where nimble asset allocation, greater implementation efficiency and a simplified re-think of retirement solutions can maximise certainty for investors.” Mr Murphy said Insight aims to allocate client capital for optimal outcomes by combining investment management skillsets across the historical divide of traditional and so-called alternative assets. “We seek to deploy a dynamic approach to asset allocation, within a disciplined process, which is less concerned by the constraints of alpha or beta generation, more with understanding how best to manage the reflexive nature of those assets to again deliver more certain outcomes for investors within a tighter expected range of returns.”
The example of currency management was cited by Insight to demonstrate its client-centric approach to what is typically a defensive component of portfolios. Murphy sees scope to potentially create improved outcomes without taking additional risk. “These ‘low-hanging fruit’ opportunities are not necessarily apparent to the traditional, passive management of currency exposures,” he said.
Equally, in the growing area of retirement income solutions – especially within an environment of inflation and rising interest rates – Mr Murphy cited the tactic of deploying diversified, low-cost, and efficient access to bond markets that hitherto has been underutilised. “Simple, innovative approaches that offer access to fixed income markets via low cost, liquid means can create potential new opportunities for investors seeking to preserve capital but enjoy the benefits of more certain income along the way,” Mr Murphy said.
Insight has operated in Australia for more than 28 years2 and manages A$43.9bn1 on behalf of Australian investors. Headquartered in London, it has operations in Sydney, New York, Boston, San Francisco, Dublin, Frankfurt, and Tokyo.
