Managed and hosted by Certitude Global Investments (Certitude) and PortfolioConstruction Forum, Tuesday’s was the first of three Global Investments Forums in Australia and New Zealand this year. These invitation-only events bring together investment professionals to hear insights and outlooks from some of the world’s leading investment managers.
  
Global Investments Forum participants were treated to a wide range of views on global investments – in particular, their role in the face of falling cash returns. Each guest speaker was from one of Certitude’s ‘stable’ of global managers, which are hand-picked to offer Australian retail and institutional investors access to particular opportunities. 
 
 They covered areas as diverse as global equities, hedge funds, emerging markets, investment grade credit and private equity.
  
Despite the diverse philosophies and specialisations represented, a number of common themes emerged. 
 
There was universal agreement that, whether one views quantitative easing as a ‘blessing’ or a ‘curse’ (or, more likely, both), its unwinding will be a point of significant risk for which investment managers should be preparing now.   
 
The considered decision by Japan to begin devaluing the yen is another global event for which investment managers were advised to prepare, with likely effects including a flood of Japanese savers’ funds hitting the offshore markets and new and increased competition for Korean and German manufacturing concerns. 
 
The advent of automated and robotic labour and its consequent massive effect on the global economy was also flagged as a major issue. By way of example, Global Investments Forum participants heard that, in the not-too-distant future, the world’s entire motor vehicle production could be carried out by a workforce of only 50,000. The robots can do the rest.  
 
Another common theme was the significant turnaround in future US fortunes brought about by its coal seam gas boom. A dramatic reduction in energy prices and the very real prospect of the US becoming an energy exporter, rather than an importer, will have wide and deep investment impacts. 
 
“In effect, the Global Investments Forum is a culmination of years of work at Certitude, exploring the globe to find investment partners who can deliver something really different for local investors,” said Craig Mowll, CEO of Certitude. “The fact is that Australians have made the most of being overweight in domestic assets. We need to explore more widely to find value and returns – especially in the prevailing environment.”

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