Market Watch
Market Watch
Thematic infrastructure investment opportunities
March 16, 2016
The significant rise of infrastructure as an asset class has been underpinned by three key demand factors. Firstly, the collapse of bond prices in many developed economies has led investors to search for yield by other means. Secondly, large inflows of capital have motivated institutional investors to pursue alternative investment options (i.e. asset classes other...Read More
A noticeable rise in allocations to infrastructure over the past five years has been driven by investor search for yield, inflation hedging and low correlation with other asset classes. Commercial property has also proven to be a popular choice among investors due to its defensive nature, diversification benefits and income potential. How do these asset...Read More
Adding value to your portfolio with corporate bonds
March 16, 2016
In an economic environment of subdued growth and low inflation, corporate bonds can offer the security of a steady income stream and capital preservation. Often corporate bonds provide higher returns than cash, government bonds or bank term deposits. With Australia’s official cash rate position of 2% expected to fall by a quarter of a percentage...Read More
Chase for yield pushes property returns higher
March 15, 2016
Commercial real estate is a popular choice among Australian and foreign investors given the current low interest rate environment. At a time when the value of global bond yields is low, defensive investors are searching elsewhere for yield and property is an attractive option; particularly those assets that have provided an income guarantee. Due to...Read More
Strategies to help investors achieve real returns
February 24, 2016
It is likely that diversified investment returns are going to be lower over the next few years than what they have averaged over the last couple of decades; thirty-five years ago bond yields in the US were 15% and today globally they are routinely negative or very low. Diversified fund performance reflects these trends with...Read More
Is de-risking at the point of retirement the right thing to do?
February 24, 2016
A popular portfolio management theory is that people should de-risk their portfolios around the date of retirement and make the switch from growth assets to income-producing assets. But this may not necessarily always be the correct approach. Although there are many circumstances where this strategy makes sense, it’s important to not apply a blanket approach...Read More
The evolution of the Chinese consumer
February 22, 2016
Recent confusion among Western investors has stemmed from what appears to be mixed messages from Western companies. Companies including Proctor & Gamble, Yum, Nestle and Volkswagon all missed analyst expectations due to weaker than expected sales in China last year. However, Nike, Adidas, Starbucks and Mercedes all beat expectations with strong growth. So what is...Read More
Achieving a stable income flow in a low interest rate world
February 22, 2016
An investment environment of constrained economic growth and high volatility means that interest rates are likely to remain lower for longer – with central banks globally cutting interest rates or leaving them on hold at low levels. Low interest rates bring to the spotlight the potential to gain yield from investments, rather than just focussing...Read More
Chase for yield pushes property returns higher
February 22, 2016
Commercial real estate is a popular choice among Australian and foreign investors given the current low interest rate environment. At a time when the value of global bond yields is low, defensive investors are searching elsewhere for yield and property is an attractive option; particularly those assets that have provided an income guarantee. Due to...Read More
Part 4 of the ESG series: Food trends and investor impacts
January 29, 2016
Opportunities to capitalise on a rising demand for food – driven by population and economic growth in Asia – coincides with opportunities and risks related to changing consumer trends. However, there is also currently an increasing obesity issue and the food and beverages sector is exposed to a number of other sustainability issues. AMP...Read More