Analysis

In his latest investment missive, Howard Marks pushes back on the controversy around private markets, saying valuations shouldn’t reflect the psychological swings that dominate public markets.

Sovereign wealth funds have hit pause on their internalisation programs as they discover that they aren’t naturals at private markets investing. And inflation and geopolitics are driving allocations to a broad range of alternative assets.

TCorp has seen “sound” performance across its diversified portfolios, but is gearing up for more volatility through 2023 and burnishing its sustainable credentials by reducing portfolio carbon intensity.

Institutional investors have singled-out a linchpin market liquidity crisis as the worst-case scenario in a new global survey conducted by US asset management firm, PGIM.

Private markets are still en vogue amongst institutional investors, even as recent market movements throw portfolios out of whack, according to the findings of bfinance’s biennial global asset owner survey.

Tidbits of good news will send equity markets soaring in the short-term. But the longer-dated fear is that central banks will be forced to respond to a financial accident without having dispatched the inflation genie.

Jerome Powell is bent on “driving the car into the ditch”. But if history is any indicator, widespread fears of low single digit returns for equities are overblown.

As the world threatens to plunge into recession, the distressed debt opportunity set is expanding. Even high-quality businesses are feeling the effects of inflation and rapid rate rises.

Adding a qualitative measure of performance or the right to appeal to YFYS could enhance consumer outcomes. But critics have warned that it could defang the test.

The opportunities of the decarbonisation boom are nigh endless. But a rising tide won’t lift all boats, and there’s plenty of ‘worst in breed’ companies that will surprise to the downside.

It’s a good thing the superannuation industry hasn’t received “chapter and verse” from the government on its affordable housing plan. But details around performance still need to be worked out.

In the madness of the last nine months, optimism has become a contrarian position. But there’s still plenty to be optimistic about in US equities.