CPD: Global equities- Reflation, duration and salvation

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Reflation In the last quarter of 2021, inflation was definitely the topic du jour; however, inflation is only one third of the reflation story. Reflation is important, because it will likely result from interest rates moving upward and as illustrated in figure one, rates have hit an inflection point. There are three key factors that... Read more continue reading

Australian institutional investors share outlook for private equity market

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Australian institutional appetite for private equity remains stable but allocators continue to seek high returns as well as more local investment opportunities. While Covid-19 has changed daily life for people around the world, the shock to the global economy and markets has started to subside. Nevertheless, the pandemic is set to have a longer-term effect... Read more continue reading

CPD: Cash and the departure of meaningful returns

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Prior to 2008, a consistent factor in the personal investing landscape was the availability of low risk, meaningful returns generated from either cash deposits or government bonds. Apart from being a reliable source of income, such investments could be relied upon to provide a level of capital protection against declines in the riskier equities markets.... Read more continue reading

Is private real estate an effective inflation hedge?

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Milton Friedman once famously observed that ‘inflation is taxation without legislation’. Inflation landed with a thud in Australia in October 2021, with the broad Consumer Price Index rising 0.8% for the September quarter, spiking 3% year-on-year. With the spectre of inflation remaining persistent, investors should rightly consider whether portfolio exposure to the effects of inflation... Read more continue reading

CPD: The investment case for climate

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While the world has been preoccupied with the COVID-19 pandemic, another epidemic has emerged alongside it: the accelerating rush among nations and corporations to announce carbon reduction targets to address climate change. This article from GSFM discusses the investment opportunity presented by addressing climate change. While the advent of the internet has been life changing... Read more continue reading

Institutional asset management fees have fallen significantly across asset classes

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A new study from bfinance, the independent investment consultancy, has revealed that institutional asset management fees have fallen significantly in a number of asset classes – particularly certain ESG or Impact strategy types. Pricing compression is evident in well-established strategies such as ESG Equities and Renewable Energy Infrastructure. Meanwhile, newer strategy types such as Impact... Read more continue reading

CPD: Credit risk versus interest rate risk

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The concept of diversification has long underpinned modern portfolio theory and the widely adopted 60/40 approach to portfolio construction. At its most basic, this approach allocates 60 percent to growth investments and 40 percent to defensive assets; the latter is largely comprised of fixed income exposure. The allocation to growth and defensive assets is nuanced... Read more continue reading

Is long WALE really low risk?

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One of the many accepted truisms in real estate is properties with a long WALE (weighted average lease expiry) tend to be lower risk. The rationale is that during times of economic disruption, long-term in place contracted leases ensure a property’s ability to maintain cashflow, and presumably retain value. But is that true? In this... Read more continue reading

LICs and LITs experience growth in asset classes beyond Aussie equities

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As the Australian listed investment industry enters its 99th year, the sector is continuing to experience growth in the newer asset classes such as property, credit, and global equities. Over recent years there has been strong growth in the number and value of LICs and LITs offering investors access to global equities, Asian markets, infrastructure,... Read more continue reading

Global infrastructure and global real estate set to shine

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Inflation is likely to remain transitory for the foreseeable future, but there are nevertheless some real opportunities for investors in global listed infrastructure and global listed real estate as they are asset classes that can leverage different economic environments, according to Bennelong Funds Management boutiques 4D Infrastructure and Quay Global Investors.  4D Infrastructure chief investment... Read more continue reading