‘Peak everything’ but equities momentarily safe

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Many of the favoured reflation trades have come under pressure in recent months, with the possibility of a period of peak growth, policy and liquidity combining to create the perfect storm for equity markets, according to Heuristic Investment Systems head of asset allocation, Damien Hennessy. However, Hennessy believes an elevated equity risk premium – the

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Extracting value from bonds in a rising rate environment

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Active Australian fixed interest managers have multiple avenues through which they may seek to extract outperformance. Included amongst these are interest rate, macro credit and bottom-up security selection strategies. Regarding the former, this can be achieved by betting on the direction of interest rates (i.e. duration positioning) or targeting bonds of specific maturities across the

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Active fund managers outperform during reporting seasons

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Over the past 10 years active fund managers in Australia have outperformed the S&P/ASX 300 Accumulation Index benchmark by 2.7 per cent during reporting seasons, according to the latest Australian shares large companies sector report from Zenith Investment Partners. The average outperformance for the past 10 years in the reporting months of August and September

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Zenith managed account client base continues to surge as adviser demand grows in the wake of COVID-19

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Zenith Investment Partners has launched four new managed portfolio clients on the MyNorth platform and a new client on Macquarie Wrap, furthering the growth of its customised managed account client base amidst increasing adviser demand for managed accounts. Steven Tang, head of consulting at Zenith, said there has been a significant increase in the interest

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Zenith rolls out responsible investment classifications

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Zenith Investment Partners has completed the full rollout of its responsible investment (RI) classifications across 878 funds on Zenith’s Approved Product List (APL). The RI classifications comprise traditional, aware, integrated, thematic, and impact, with each category designating the extent of each fund’s incorporation of RI factors. Dugald Higgins, head of real assets and listed strategies

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The great rotation

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To say that COVID-19 has triggered a rollercoaster for markets across the globe is an understatement. The property sector has been particularly impacted though not always in the most predictable way. One stock that has typified the rollercoaster in REIT markets since COVID is Unibail-Rodamco-Westfield (URW), Europe’s largest shopping mall owner. Saddled with high debts

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Unlocking potential through short selling

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In January 2021, prominent hedge funds were making international headlines for all the wrong reasons. Terms such as ‘shorting’, ‘GameStop’ and ‘short squeeze’ were being thrown around in daily conversation, driven by a Reddit-fuelled rampage that caused unprecedented volatility in global financial markets. Given the myriad of negative publicity surrounding shorting that stemmed from the

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Sustainable investing – which manager has the endurance?

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The importance of sustainable investing has developed into a key thematic in recent years, as more investors increase their focus on sustainability and environmental, social and governance (ESG) issues in their portfolios. Demanding greater transparency and commitment from managers, we’ve observed a philosophical shift, as advisers seek greater alignment between funds and the preferences of

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Zenith introduces dedicated index fund rating

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Investment research consultancy Zenith Investment Partners has launched a framework specifically for rating index funds, with the first ratings now available through its adviser site. The new ratings will be applied as Zenith moves through its annual review cycle, commencing with the June 2021 release of its Australian fixed interest, Australian equities and property sector

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Fixed income animal spirits

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A common pain point amongst our clients in recent years has been the diminishing defensiveness associated with fixed income allocations and the expectation that future returns will be lacklustre. This frustration peaked last year when bond yields were languishing at all-time lows, and clients were questioning the defensive qualities and return potential of their fixed

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