Investor Education Articles

You may have noticed you’re hearing more about private debt (also known as private credit) as an asset class these days. You’re not imagining it. Private debt is booming as an asset class. Preqin estimates the sector’s assets under management will grow from US$1.5 trillion in 2022 to US$2.8 trillion by 2028, reflecting growing awareness of the sector’s solid income generation credentials.

Australia’s population of Self-Managed Super Fund (SMSF) investors continues to grow with over 600,000 SMSFs up and running. More investors are being attracted by the key benefit of being in control of their own super along with the improved transparency, flexibility and customisation potential SMSFs offer.

As a new year kicks off, investors face an investment landscape which doesn’t resemble many past periods. After the fastest interest rate rising cycle in history, the impacts of higher interest rates are still filtering through whilst two wars continue to rage, US Government debt levels reach unprecedented levels, and global growth is expected to run at well below trend.

Investing is a humbling business. And one of the most humbling aspects of investing is facing up to the results of your trading activities at the end of each year. As the new year begins, now is the ideal time to assess the impact you had on your portfolio in 2023. Warning: you may be surprised by the results…

After the rapid rise in the number of ETFs on offer, investors are faced with more choice than ever when it comes to selecting funds. And with typical managed fund fees running at many multiples of typical ETF fees, investors are increasingly asking the question… is it worth paying the higher fees for an actively managed fund?

Risk is a complex subject. Whilst there are many official definitions, most successful investors tend to define risk as what you don’t see coming—the unknown unknowns. Understanding risk in these terms may be the key to recognising the emergence of major risks faster, and hence avoiding the more significant financial pain that investment mistakes tend to lead to. Losing less on your mistakes may well be the key to improving your investment returns…

In recent years, shorting stocks has become a common strategy for professional and individual investors alike, so there’s a growing population of investors on the lookout for stocks they believe will fall in value.

In the words of John Kenneth Galbraith, ‘We have two classes of forecasters: those who don't know, and those who don't know they don't know.’ You’d be forgiven for believing we are already in the midst of a recession given the amount of bearish economic commentary in recent months. However, at least in nominal terms, the Australian and global economies have continued to grow despite sharply higher interest rates—and it is nominal growth that matters most to equity markets. With the end of the year fast approaching, it’s timely to consider the 2024 economic outlook—and one particular economic forecast that stands out as vulnerable to being wrong as we approach the new year…

It’s been a challenging year for most investors with sharply higher interest rates leading to significant underperformance in asset classes which used to be regarded as defensive such as government bonds. The rules of the game have been turned on their head.

The recent Australian Consumer Sentiment Snapshot reveals Aussie consumers have one particular economic factor front of mind… inflation. The inflation monster is impacting upon consumers’ disposable incomes, and more importantly it’s causing havoc in consumers’ minds where it’s doing most of its insidious work. It’s this growing awareness and fear of inflation which suggests we may be on track for inflation to trend higher than markets (and central bankers) currently believe. If that is indeed the case, the investment implications are significant…

Australia has a famously large population of highly qualified fund managers considering the size of the country. According to KPGM, Australia’s 647 fund management groups manage $4.3 trillion across 6,451 products. That represents around $170k under management for each and every Australian resident, so it’s a sizeable portion of the nation’s wealth. This translates into opportunity for individual investors who know what to look for in the vast smorgasbord of fund management options at their disposal.

It’s not often the management of companies which outperform in the extreme share the secrets of their success with the investment world at large. When it happens, it pays to sit up and listen. For investors, these conversations provide valuable clues as to how to identify the management teams of future multi-baggers.