During periods of low growth and volatility, relative exposure to different asset classes is more critical to investment returns than active security selection or choice of investment manager. In this article, we discuss the benefits and philosophy behind a dynamic asset allocation (DAA) investment strategy. DAA is used to actively adjust the split of investments...Read More
Competition for infrastructure assets is set to intensify over the next 12 months, as it provides investors with the combination of stable yield and strong potential for capital growth – an attractive proposition for those seeking yield in a low-growth environment. In this article, we explore the growth potential of infrastructure and four of the...Read More
In the current low-growth environment, global listed real estate securities are uniquely placed to offer investors a good source of income. We’re also seeing the growth of public real estate markets creating opportunities for investors to access attractive returns while offsetting portfolio risk. We engage James Maydew in some Q&A to discuss why this asset...Read More
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
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
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
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
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
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
Your privacy is important to us and AMP Financial Planning Pty Limited ABN 89 051 208 327 Australian Financial Services Licensee and Australian Credit Licensee No. 232706, which is part of AMP. You may request access to your personal information at any time by calling us on (08) 8357 3999 or contacting AMP on 1300 157 173. Information collected will be subject to AMP's Privacy Policy. You can also contact us or AMP if you do not wish to receive information about products, services or offers available from us or AMP from time to time.