Have you ever invested in a fund with the expectation that you’ll be able to sell your stake at a fair price, only to discover liquidity was non-existent when you eventually tried to sell? Welcome to the liquidity illusion, the time-worn tendency for investors to run for the exits at exactly the same moment only to discover the exit is closed.
Private credit has traditionally been classified within the 'alternatives' bucket of a portfolio and grouped with illiquid assets such as private equity, real estate, and infrastructure. For many investors, this category has made up no more than 10–20% of total portfolio allocations.
Investor interest in private credit is growing, prompting many to explore how it fits within their broader asset allocation. Here, we examine two important features: correlation and consistency, and how to pick a manager with a track record that can deliver both.
A year ago, the US equities story was the about the only investment game in town. How things have changed since the US tariffs were announced and the ‘Trump Dump’ began.
A growing number of Australians are turning to self-managed super funds (SMSFs) to take greater control of their retirement savings—and for many, property sits at the heart of that strategy.
According to the latest ATO figures, SMSFs held $1.02 trillion in assets at the end of the December 2024 quarter. While listed shares remain the largest allocation, direct property makes up 16.5% of total SMSF assets.
As global markets swing between optimism and uncertainty like a pendulum, investors are increasingly on the lookout for alternative ways to fortify their portfolios.
Amidst this strange new world of trade wars and deteriorating geopolitical relationships, Australia finds itself in a peculiar position: a land of promise and opportunity wrestling with the spectre of mediocrity at a time when competitive advantage is everything.
More than ever, the country’s future depends on rising above the apathy that’s taken hold of the economy…
In most developed markets, including Australia, higher interest rates have tempered inflation but it’s proving stickier than most central bankers expected. In short, the journey to tame inflation is taking longer than expected and remains far from won.
The concept of diversification has long been foundational to most investment strategies. However, the rise of the Magnificent 7 in recent years seemed to disprove its benefits to large swathes of the global investment community. As a result, millions of investors have been ‘all-in’ on the same trade.
That was then and this is now. The world has changed in profound ways since Trump’s inauguration, and markets have been reminded of the benefits of diversification.
The stage is surely set for a resurgence in multi-asset investing…
Have you ever met a true permabear? It sometimes seems like this pessimistic breed of investors are preprogramed to celebrate all bad news and criticise all good news.
There aren’t many asset classes which have grown as consistently as private credit in recent years. More and more investors are allocating a portion of their fixed income capital to this fast growing asset class. For good reason. The solid risk-adjusted returns available in private credit provide welcome stability and predictability to investors’ portfolios.
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