CPD: Surviving the dividend drought

From

Introduction The Australian market declined sharply from the 20 February high of 7,160 to the 23 March low of 4,536, and has since recovered to over 6,000 at the time of writing. The decline was driven by fears and uncertainty of the extent of the medical crisis, and the economic consequence of isolation and the […]

CPD: Factor investing – an introduction

From

Introduction Any list of the hottest topics in investment management circles over the last few years is almost certain to contain ‘Factor Investing’. Sitting between highly active, alpha seeking investing and low-cost, index hugging investments, factor investing is effectively a ‘third pillar of investing’, combining the transparent, rules-based and low-cost nature of passive investing with […]

CPD: Economic freeze sends US oil price sub-zero

From

While reviewing the overnight market on the 21st of April 2020, no doubt we were not alone in taking a moment or two to comprehend the number we saw. West Texas Intermediate, the US benchmark set out of Cushing, Oklahoma, was showing a price for the May contract as low as negative USD 37 per […]

CPD: Fed to go negative? Any idea can seem ‘crazy’ until it becomes fact

From

The market is becoming focused on whether the Federal Reserve (Fed) will take rates negative. Admittedly, Powell has thrown a bit of cold water on it by saying that they haven’t considered it, and almost every economist I have read seems to be saying it’s not going to happen. But that doesn’t mean the idea […]

CPD: The outlook for dividends in a world of yield starvation

From

There remains much uncertainty regarding the depth, breadth and length of the COVID-19 recession. For example, the Global Economic Policy Uncertainty Index (compiled by academics from Stanford, Chicago, and Northwestern) stands at a record high and almost twice its level during the global financial crisis (GFC). Bill Priest, CFA, Executive Chairman, co-CIO and portfolio manager […]

CPD: Sustainable Investing in action in Australia

From

Introduction In the previously published first article of this two-part series (‘Sustainable investing, concepts, considerations and conversations’), we introduced the topic of Sustainable Investing (SI), focussing on the different types of SI, its origins, and growth drivers. In this second part we will take a closer look at Sustainable Investing in action in Australia, including […]

CPD: Is negative interest rate policy a ‘cure’ worse than the disease?

From

Interest rates, as the Boss would say, are goin’ down, down, down, down. However, are the potential outcomes of negative interest rate policy (NIRP) worthwhile? The Economics Team at GSFM’s investment partner, fixed income specialist Payden & Rygel, examines this issue. Down, down, down is not merely a song lyric. Rates have fallen. It’s not […]

CPD: Global listed infrastructure –‘Buy’ time looming?

From

The COVID-19 pandemic has very likely pushed the international economy into recession and cut a swathe through global equity markets. From 21 February through to the end of March 2020, the US S&P 500 equity index was down 23.2% and the MSCI World index was down 23.1%. Listed infrastructure has certainly not been immune to […]

CPD: Picking winners

From

During a recent national roadshow, Nick Griffin, CIO of Munro Partners, explained that when it comes to investing, there are always lots of losers and just a few winners. This article examines how the S-curve of a company or industry can help to identify winners. It also examines the sector likely to produce tomorrow’s winners […]

CPD: 5 big questions the RBA needs to answer in 2020

From

After extremely strong fixed income returns in 2019, the interest rate outlook for 2020 is far more sanguine as the odds of continued interest rate cuts from the Reserve Bank of Australia (RBA) looks lower than last year. Furthermore when interest rates make moves in the magnitude of last year, they are rarely followed in […]