RBA continues to eschew a negative rates policy

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While acknowledging the severe damage to the economy from the COVID-19 crisis and the now elevated potential risks of ‘second wave’ COVID-19 infections, the Governor and RBA Board continue to eschew the canvassing of potential “innovative” measures in monetary policy – such as the contemplation of a negative rates policy. Instead, the Governor and Board

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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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GSFM’s Stephen Miller comments on the Federal Reserve June statement

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Fed forecasts no increase in rates until at least the end of 2022 The Federal Reserve projected interest rates will remain near zero through 2022 with the Fed’s ‘dot plot’ revealing a flat profile out to end 2022. The Fed also pledged to maintain at least the current pace of asset purchases at approximately $80b per month As part

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

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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

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

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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

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CPD: Is ESG just warming up?

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Whether ESG factors are truly ‘alpha’ factors equivalent to their Value, Momentum, Quality and Low Volatility counterparts remains a contentious issue within the investment community. In this article from GSFM’s investment partner Man Group, it examines the rise of interest in ESG and whether ESG factors can provide superior investment returns. The discussion about responsible

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Whatever it takes

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This is a ‘whatever it takes’ moment for Australia and, indeed, the rest of the world. Former RBA Governor Glenn Stevens’ had a dictum: “first do no wrong”. In the current circumstance that means erring on the side of excess when it comes to stimulus. The June quarter is likely to see the biggest ever

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CPD: Picking winners

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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

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CPD: The hunt for yield can lead to risky territories

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With interest rates hovering around historical lows globally, investor appetite for alternative income sources has markedly increased. In the current environment uncertainty is writ large; challenges come at investors from all angles – global and domestic, as well as longer term structural challenges. In this article, Damien McIntyre, CEO of GSFM Pty Ltd, discusses where

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CPD: Which beta is better?

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Infrastructure investing is increasingly popular within retirement savings plans and it’s easy to understand why. An allocation to infrastructure can potentially deliver lower volatility and a higher dividend yield than global equities, and a diversifying addition to a multi-asset class portfolio. In this article Ganesh Suntharam, CIO and Senior Portfolio Manager with GSFM’s newest investment

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