CPD: Surviving the dividend drought

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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 […]

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Volatility stirs as fears grow over a ‘second wave’ and IMF downgrades global growth outlook

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Key points: Market sentiment has turned negative on concern that the spreading coronavirus could force policy makers to slow the pace, or reverse, business re-openings. The International Monetary Fund downgraded its outlook for the world economy, projecting a significantly deeper recession and slower recovery than it anticipated just two months ago. We expect trade tensions […]

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Using infrastructure debt in a diversified portfolio

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In the first of a two-part series on asset allocation and infrastructure debt, Andrew Jones, Global Head of Infrastructure Debt at AMP Capital, provides a framework for considering infrastructure debt in the context of a diversified portfolio. Infrastructure debt is increasingly popular with investors, as evidenced by our $6.2 billion fundraise for AMP Capital IDF IV in […]

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Capital raisings, a source for outsized returns

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Market participants, especially equity investors, can be forgiven if the words déjà vu spring to mind during this COVID-19 period. Although there are definite similarities between the Australian equity market drawdowns and subsequent recoveries of COVID-19 and the Global Financial Crisis (GFC), COVID-19 has proven to be the GFC in fast-forward. That is, during this […]

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Covid-19 will have long lasting social and economic consequences

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The pandemic has created a fertile environment for social unrest, with much depending how well governments address the crisis and the subsistence needs of their citizens. In a recent research note, J. Patrick Bradley, Senior Vice President, Investment Research at Brandywine Global ( part of Legg Mason ) states: “There’s nothing prophetic about saying the […]

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Zenith Managed Account clients increase through market volatility

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Demand for Zenith Investment Partners managed account services continues to grow amid the uncertainty and volatility in investment markets sparked by the Covid-19 pandemic. Zenith’s CEO David Wright said it is not unexpected that advice firms were proactive in seeking additional investment, research and client communication support during these times. “As market volatility spikes, and […]

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Longer-term factors key for AREIT sector

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The Australian Real Estate Investment Trust (AREIT) sector may have taken a COVID-19 hit however short-term implications should not deter investors from taking a longer-term view of the market, says Grant Berry, SG Hiscock & Co portfolio manager of AREITs.  “REITS are now in a far better position than where they were at the start […]

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Looking to solve the low yield conundrum: Legg Mason Brandywine Global Income Optimiser Fund marks three-year track record in Australia

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Australia has entered a record low interest rate environment and may remain so for a prolonged period. Thus, investors, and their advisers, face a problem; how to generate sufficient income in a low interest rate world without taking on undue risk? Andy Sowerby, Managing Director, Legg Mason Australia says: “In today’s challenging, low interest rate environment, searching […]

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CPD: Factor investing – an introduction

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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 […]

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Dividend cuts, deferrals and cancellations – what can investors expect from Australian equities?

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The swift and violent impact of COVID-19 has been clear for all to see, with lockdowns, rising unemployment rates and growing budget deficits putting significant strain on the global economy. Australian equities have not been immune to the effect of the virus, with company earnings taking a material hit, despite the equity market rallying from […]

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