AdviserVoice2023 offers opportunities for investors - AdviserVoice https://www.adviservoice.com.au/2022/12/2023-offers-opportunities-for-investors/ Financial planner information & financial planner education/CPD - AdviserVoice Thu, 04 Jun 2026 21:30:42 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 2023 offers opportunities for investors https://www.adviservoice.com.au/2022/12/2023-offers-opportunities-for-investors/ https://www.adviservoice.com.au/2022/12/2023-offers-opportunities-for-investors/#respond Wed, 07 Dec 2022 21:00:28 +0000 https://www.adviservoice.com.au/?p=86633 Insight Investment, a A$1.8 trillion[1] global asset and risk manager says that though the triple systemic shocks of GFC, pandemic and war continue to impact societies and economies, 2023 is presenting strong investment opportunities particularly in the area of credit. It can be easy to miss secular change after a multi decade period of prosperity and strong markets said Alex Veroude, Chief Investment Officer, Fixed Income at Insight, but it’s important to assess opportunity and return expectations with a different perspective now. The aggressive hiking cycle from central banks is now fully priced in markets. With credit spreads near historic highs, we see a rare opportunity to achieve compelling real returns through investment grade bond exposure.

Speaking at a media update, Veroude said that the Fed rate hiking cycle is close to terminal so ambitions for yields in the region of 6 – 7% are not unreasonable on high quality investment grade exposure. Veroude added that high yield credit also presents potential return opportunities for investors on the back of credit rating reviews likely to occur in the expected recessionary environment we may be entering.

Bruce Murphy, Director Australia and New Zealand for Insight commented on the firm’s strategy to make this opportunity available to wholesale investors via the launch of the Australian-domiciled Insight High Income Fund [the Fund]2,3. The Fund has the potential to deliver a consistent monthly income in excess of 3% over the Australian cash rate in addition to capital appreciation over the medium to long term. Murphy cited the importance of daily liquidity and high levels of diversification across securities and industries employed in the strategy, making it a useful supplement to less liquid and higher cost private debt strategies.

The Fund employs a systematic active approach to security selection which aims to take advantage of structural inefficiencies in the bond market to capture potential upside arising from forced selling when bonds are downgraded to a high yield investment rating. Transaction costs may also be minimised through innovative “bond basket” trading methodologies that tap the highly liquid exchange traded fund market.

“Innovative approaches such as the Insight High Income Fund, that offer access to fixed income markets via low cost and liquid means, can create new opportunities for investors who want the potential to produce monthly income with the added prospect of capital appreciation over the medium to long term,” Murphy said.

Insight has operated in Australia for more than 25 years and manages A$39.0bn1 on behalf of Australian investors. Headquartered in London, it has operations in Sydney, New York, Boston, San Francisco, Dublin, Frankfurt and Tokyo.

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[1] As at 30 September 2022. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Figures shown in AUD. FX rates as per WM Reuters 4pm spot rates. Reflects the AUM of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services
]]> Insight Investment, a A$1.8 trillion[1] global asset and risk manager says that though the triple systemic shocks of GFC, pandemic and war continue to impact societies and economies, 2023 is presenting strong investment opportunities particularly in the area of credit. It can be easy to miss secular change after a multi decade period of prosperity and strong markets said Alex Veroude, Chief Investment Officer, Fixed Income at Insight, but it’s important to assess opportunity and return expectations with a different perspective now. The aggressive hiking cycle from central banks is now fully priced in markets. With credit spreads near historic highs, we see a rare opportunity to achieve compelling real returns through investment grade bond exposure.

Speaking at a media update, Veroude said that the Fed rate hiking cycle is close to terminal so ambitions for yields in the region of 6 – 7% are not unreasonable on high quality investment grade exposure. Veroude added that high yield credit also presents potential return opportunities for investors on the back of credit rating reviews likely to occur in the expected recessionary environment we may be entering.

Bruce Murphy, Director Australia and New Zealand for Insight commented on the firm’s strategy to make this opportunity available to wholesale investors via the launch of the Australian-domiciled Insight High Income Fund [the Fund]2,3. The Fund has the potential to deliver a consistent monthly income in excess of 3% over the Australian cash rate in addition to capital appreciation over the medium to long term. Murphy cited the importance of daily liquidity and high levels of diversification across securities and industries employed in the strategy, making it a useful supplement to less liquid and higher cost private debt strategies.

The Fund employs a systematic active approach to security selection which aims to take advantage of structural inefficiencies in the bond market to capture potential upside arising from forced selling when bonds are downgraded to a high yield investment rating. Transaction costs may also be minimised through innovative “bond basket” trading methodologies that tap the highly liquid exchange traded fund market.

“Innovative approaches such as the Insight High Income Fund, that offer access to fixed income markets via low cost and liquid means, can create new opportunities for investors who want the potential to produce monthly income with the added prospect of capital appreciation over the medium to long term,” Murphy said.

Insight has operated in Australia for more than 25 years and manages A$39.0bn1 on behalf of Australian investors. Headquartered in London, it has operations in Sydney, New York, Boston, San Francisco, Dublin, Frankfurt and Tokyo.

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[1] As at 30 September 2022. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Figures shown in AUD. FX rates as per WM Reuters 4pm spot rates. Reflects the AUM of Insight, the corporate brand for certain companies operated by Insight Investment Management Limited (IIML). Insight includes, among others, Insight Investment Management (Global) Limited (IIMG), Insight Investment International Limited (IIIL), Insight Investment Management (Europe) Limited (IIMEL) and Insight North America LLC (INA), each of which provides asset management services

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