In the last two decades, Asia has become a powerhouse of the world’s economy, contributing more than half of global GDP. Led by China’s rapid growth, this trend is likely to continue, but what is the investment opportunity?
If you research Australia’s largest listed companies, you’ll discover that some of them were much smaller stocks not that long ago. Small or medium companies can be overlooked, given they’re often considered riskier than their large cap peers. Yet historically, investors have been rewarded for additional risk with superior long-term returns.
Australian equities are a popular choice for investors, currently making up the largest share (38%) of SMSF funds under management. But by limiting your portfolio to domestic shares, you’re missing out on exposure to a huge number of the world’s most successful companies.
Emerging markets (EM) have been growing rapidly in recent years. In fact they now represent nearly 60 percent of global growth and more than 50 percent of global GDP. Once dominated by agriculture and cheap manufacturing, EM countries are today home to some of the world’s fastest growing economies and most innovative companies.
As a business, we’re often asked about India and why investors should consider allocating either through a stand-alone allocation or exposure through an emerging markets portfolio. On one hand, investing in one of the world’s fastest growing economies sounds sensible but, equally, investors have concerns around volatility and risk, particularly macro risks. So, let’s take a closer look at the case for India.
In the last two decades, Asia has become a powerhouse of global growth. Demographics and digitalisation are fuelling a boom economy that’s expected to continue for decades to come.
How do you behave in the face of fear? Do you run towards danger, or turn and flee? Knowing how you and others react to extreme situations might seem remote from the world of investment, but could have a lot to do with what separates the great investors from the rest of us.
The ascendance of Asia since the start of this century has been nothing short of remarkable. These charts capture the sheer scale of the region's dominance. A growing middle class, higher spending power and increased investment on infrastructure and technology are among the drivers shifting the balance of economic power from the West to the East.
Forming conclusions based on limited data helps us to process things quickly in a complex world however these shortcuts can lead us astray…
There’s been a great deal of debate whether active or passive management is the right choice for investors but is this the right question to be asking?
Conditions change throughout an investment cycle, so how and when should investors combine the various shades of active and passive to maximise returns?
Portfolio construction all too often appears as an after-thought for many active managers yet it is ultimately critical in determining the investment returns and volatility of returns for investor in the underlying portfolio.
Software companies often attract high valuations at least at face value but if you drill down deeper you soon discover the real value of business with sustainable moats that can reinvest at high rates of return.
ESG covers such a broad range of approaches that investors can be forgiven for being confused as to what constitutes ESG and what doesn't. Do we need a unified definition of ESG, and if so, what is it?
‘Overconfidence’ becomes particularly prevalent in bull markets and periods of sustained stability. So how can investors avoid the pitfalls?
Downside protection tools can assist in mitigating certain portfolio risks. But before even considering the appropriate tool it is important to understand what risk is and how exactly risk mitigation and hedging differ.
10 key messages to help investors steer their portfolios through volatile times.
Alva Devoy, Managing Director looks at the fundamental, economic and behavioural drivers of bull markets and the possible implications for global equity investors.
A key decision for investors in 2018 is whether to de-risk or not. Should you de-risk your portfolio early and face missing out on potential returns, or should you stay invested and face a possible market downturn? Whatever you do, resolve to clearly make that decision.
2017 was a good year for equity investors. It is hard to overstate the importance of diversification in an investment portfolio. We take a closer look at the themes, asset classes and regions and how they may impact investors in 2018.