Funds Management

Australian investors are finally warming to Japanese equities after years of avoiding them for “good macro reasons.”

With investments in everything from music royalties to litigation financing, international private markets manager Northleaf is exploring a “robust pipeline” of deals Down Under.

There’s no end in sight for the pain in equity markets, and investors are rushing for the exit. But Australian equities offer a bright spot.

While value has been the winner of the recent market rout and growth the loser, a zealous adherence to either style could see managers burned by economic downturn.

A punishing, indiscriminate sell-off has left opportunities lying on the floor. After a 13-year “anti-value phase”, the style is coming back into style.

As the money-fueled tech bubble pops, value investing is clawing its way back to the top. But investors shouldn’t write off growth just yet, even if it’s not “coming back in a hurry.”

Year-to-date, fixed income markets are about as bad as equities. But Michael Leithead, fixed income and senior portfolio manager at EFG Asset Management (EFGAM), is more positive than he’s been “in a long time.”

New York-based Kudu Investment Management has returned to Australia in hopes of pulling off a repeat of its 2020 deal with Channel Capital.

Market conditions have shifted dramatically in recent months. But while growth strategies have suffered significant pain, value investors are finally proving their bona fides.

Shareholders in toll road operator Atlas Arteria believe the company will be able to drum up significant offshore interest in the face of a raid on its registry by IFM Investors.

Academically driven global index provider Scientific Beta has taken strides in its commercialisation with its latest offering. It has also prompted the question: is there a point where smart beta becomes dumb alpha?

Everybody wants certainty, but it’s the one thing in short supply in markets today.