CPD: Three strategies to avoid unintended concentration risk

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The Australian sharemarket is structurally prone to concentration risk and many Australian investors display a home bias in their investment portfolios. In this article, GSFM outlines the issues with concentration risk and provides three strategies to avoid it. Concentration risk can be defined as the risk of amplified losses that may occur from having a... Read more continue reading

CPD: The Australian Dividend Landscape versus Global Dividends

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This paper will discuss the outlook for the Australian equity market with regards to dividends and the subsequent impact this will have on total returns. Despite having a history of consistent dividends and high payout ratios, and the added benefit of the imputation tax system, the outlook for Australian companies looks susceptible to the market... Read more continue reading

The 60/40 portfolio needs a makeover

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Investors who rely on fixed income investments to reduce portfolio volatility when risk assets are underperforming may need to revise their investment approach, according to recent analysis from Daintree Capital (Daintree). Daintree’s analysis shows that in a ‘lower for longer’ interest rate environment short duration, active fixed income strategies are necessary to manage risk in... Read more continue reading

Active management will be essential for fixed income investors looking to navigate fixed income markets in the months and years ahead

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As investors continue to grapple with the US election outcomes, the economy, coronavirus developments, and other unknowns, the one certainty is that the ability to navigate the fixed-income markets will be critically important in the coming months, notes Western Asset, a global fixed income manager. Douglas A. Hulsey, Head of Product Management at Western Asset... Read more continue reading

2021 outlook strong, but COVID-19 remains the wildcard

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Developments in the United States with Biden’s presidency, and the status of the COVID-19 vaccine globally, will have a key influence on markets in 2021, and there is quiet optimism with long-term investment themes and insights remaining intact, according to Bennelong boutiques Kardinia Capital, 4D Infrastructure and Quay Global Investors. Kardinia Capital portfolio manager, Kristiaan... Read more continue reading

CPD: Global small caps – now is the time

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Many investors and advisers recognise that a diversified portfolio should include an allocation to equities across the market capitalisation spectrum. This allows investors to capture the “small-cap premium” which has shown persistence over medium and long-term investment horizons. In this article GSFM explains why it’s the right time to include global small caps in a... Read more continue reading

From Seat counts to cycle

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After four days of counting, the United States have a new President-elect in Joe Biden. However, it doesn’t look like the Democrats will be able to take control of the Senate, and so the market is preparing for a gridlock scenario. Equity markets have been strong on the back of the announcement (and through the... Read more continue reading

What the US election and a COVID-19 vaccine mean for real estate

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The outcome of the US presidential election and Pfizer’s coronavirus vaccine announcement have resulted in some significant swings in market prices across global equities and listed real estate. The following update is from Quay Global Investors’ principal and portfolio manager, Chris Bedingfield. US presidential election It appears Joe Biden will win the US presidency and... Read more continue reading

4 answers to the RBA’s toughest questions

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For the past six months, the RBA has been subdued at using unconventional policy compared to offshore. After six months of sitting on the sidelines, the RBA has finally eased rates. Chris Rands, Portfolio Manager, Fixed Income at Nikko Asset Management has penned a piece exploring the RBA’s delay to move and ease rates, deep... Read more continue reading

Biden won’t ride a blue wave, but change is coming

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The tide has gone out on the U.S. presidential election’s blue wave scenario. If Joe Biden’s apparent victory withstands legal challenges, he will assume the presidency with a Democratic majority in the House of Representatives and an undetermined power structure in the Senate. This likely takes a “policy revolution” off the table, but he can... Read more continue reading