Latest Articles

Cash rules the roost as rates remain high

Despite the overall bullish trend in equities, there's been a notable surge in cash being held by money market funds with an all-time high in those assets recently reached. In fact, total assets in US money market funds, which invest in cash-like securities such as short-term Treasury bills, grew to $US6.02 trillion last month, with both retail and institutional funds increasing their allocations due to the higher short-term rates on offer.

Asset Allocation Investor Education

5 Mar 2024

· Ankita Rai

· 5 MIN READ

The evolution of the emerging markets narrative

Most investors currently lack exposure to emerging markets after a generally challenging decade for the asset class prior to 2023. However, over the past year the emerging markets narrative has improved for some structurally-attractive emerging market countries where stock market momentum continues to build.

Asset Allocation Managed Fund Shares

28 Feb 2024

· Simon Turner

· 8 MIN READ

The shifting sands of the property fund sector

The fastest rate rising cycle in history was always going to test the commercial property fund sector. With typical loan to value ratios of 40-70%, it’s an asset class which is at the mercy of the RBA’s cash rate decisions. As such, investors tend to be bullish on commercial property funds when rates are falling, but rising rates generally spell bearish sentiment.

Property Managed Fund Asset Allocation

16 Feb 2024

· Simon Turner

· 6 MIN READ

Are small caps out of the woods?

It’s been a torrid couple of years for ASX smaller companies with most investors turning their backs on the asset class like the plague. The extent of their recent disfavour has been hard to fathom given the positive trend in equities since the pandemic. This raises the question: is now the right time to revisit small and micro caps whilst others remain fearful? To answer that, we’ll need to delve into the reasons for the recent underperformance for a steer as to what’s coming next…

Asset Allocation Managed Fund Shares

14 Feb 2024

· Simon Turner

· 8 MIN READ

Should you have more private equity exposure?

In recent years, the private equity sector has increasingly cast its fund raising net to include individual investors who are aiming to generate strong risk-adjusted returns over the long term. With more investors considering the private equity opportunities on offer, it’s worthwhile delving into this opaque sector’s unique benefits and challenges.

Private Assets Asset Allocation Investor Education

8 Feb 2024

· Simon Turner

· 7 MIN READ

Prepare for volatility

After three straight months of global equity markets rallying driven by expectations that the Fed has paused its rate raising cycle, volatility is currently unusually and arguably unsustainably low. The historical data suggests it’s unlikely this situation will continue for much longer. In short, it’s probably the right time to prepare for volatility to return in the coming weeks or months.

Shares Investor Education Asset Allocation

1 Feb 2024

· Simon Turner

· 5 MIN READ

Thematic ETFs: Are you getting the entry point right?

Last year was another thematic-driven year with thematic ETFs gaining popularity among Australian investors. According to the 2023 ASX Investor Study, the proportion of Australian investors using ETFs has grown from 15% to 20% over the past three years.

Asset Allocation Investment Themes

25 Jan 2024

· Ankita Rai

· 5 MIN READ

Positioning, positioning, positioning: the key to 2024 outperformance

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.

Investor Education Asset Allocation Fixed Interest

11 Jan 2024

· Simon Turner

· 6 MIN READ

Are any asset classes defensive these days?

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.

Asset Allocation Investor Education Macro

16 Nov 2023

· Simon Turner

· 6 MIN READ

Where the inflation monster does most of its work

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…

Macro Investor Education Asset Allocation

9 Nov 2023

· Simon Turner

· 8 MIN READ

Making sense of a confusing market

Strange times are afoot in financial markets with contradictory assumptions being priced into various asset classes. Here’s a great summary of the confusion investors must contend with at present… In the words of Charlie Munger, <i>‘If you're not a little confused about what's going on, you don't understand it.’

Investor Education Investment Themes Asset Allocation

12 Oct 2023

· Simon Turner

· 6 MIN READ

Why the big switch from equities to bonds hasn’t happened yet

Most market experts believe equities are expensive right now while bonds are cheap. Despite this fundamental backdrop, the much talked about switch from equities to bonds hasn’t happened yet. During market extremities like this, it’s worth asking why fundamentals are being so ignored in favour of momentum.

Shares Fixed Interest Asset Allocation

6 Sept 2023

· Simon Turner

· 5 MIN READ

Articles

asset allocation Articles

Cash rules the roost as rates remain high

The evolution of the emerging markets narrative

The shifting sands of the property fund sector

Are small caps out of the woods?

Should you have more private equity exposure?

Prepare for volatility

Thematic ETFs: Are you getting the entry point right?

Positioning, positioning, positioning: the key to 2024 outperformance

Are any asset classes defensive these days?

Where the inflation monster does most of its work

Making sense of a confusing market

Why the big switch from equities to bonds hasn’t happened yet

Recent Videos

Income beyond yield | Conviction Capital | Episode 4

Property: Debt vs Equity | Conviction Capital | Episode 3

Venture Capital Unlocked: What Every Investor Needs to Know | Conviction Capital | Episode 2

Articles

asset allocation Articles

Recent Videos

Income beyond yield | Conviction Capital | Episode 4

Property: Debt vs Equity | Conviction Capital | Episode 3

Venture Capital Unlocked: What Every Investor Needs to Know | Conviction Capital | Episode 2

Subscribe to our newsletter