Analysis

Investors are focusing too heavily on the transition to renewables and aren’t seeing the catastrophic implications of a short fall in oil supply, according to Pzena Investment Management. In recent times, a number of institutional investors have made waves by announcing sweeping divestments from fossil fuels like oil and thermal coal. But investors are pricing…

Asset owners haven’t been challenged with a sustained crisis in nearly 20 years, and it’s possible they’ll get one just as they make the jump into markets they’re unfamiliar with. Governance will be key. As inflation climbs and market volatility increases, Rich Nuzum, president of Mercer’s investments and retirements business, says that asset owners need…

AMP Capital has a new name and new suitors as it approaches a demerger in June. But AMP CEO Alexis George is playing her cards close to the chest. After a short stint as “PrivateMarketsCo”, AMP Capital will become Collimate Capital in an effort to provide a clean slate in the aftermath of the Boe…

Magellan’s funds are unlikely to survive the departure unscathed, but commentators seem to believe the business will be better for the long-term. There seemed to be little sign that Hamish Douglass was in distress last week. He happily talked his book at a Morningstar conference as a horde of retail investors grew increasingly frustrated on…

Renowned US hedge fund Bridgewater Associates is tipping a messy market transition as inflation and interest rate changes wash through the global financial system this year. Bridgewater, founded by Ray Dalio (photo at top), warns that while extraordinary COVID-era global monetary stimulus measures have finally kick-started the real economy, investors remain overly optimistic about the…

For investors trying to figure out how to navigate inflation volatility, an infamous shipwreck might hold the answers. The question of whether inflation is transitory or structural is likely the wrong question to be asking.UK-based investment house Ruffer believes that it’s both: that the inflation tide will come in and go back out repeatedly, bringing…

As investors speculate on whether the bubble will pop or already has, there’s fewer and fewer safe havens to be found. But it’s worth remembering that it’s not necessarily the end of the world. Yes, the bubble is going to pop, has popped, or is popping. Investors are either about to feel the pain or…

The Future Fund’s unbroken run of robust returns is about to the face a tough new investment paradigm. A stronger bent to “skill-based investments” might help them weather the storm. There’s a strong argument for the Future Fund being one of the wonders of the investing world. Seeded with $60 billion 13 years ago, it’s…

Some “Tiger-ish confidence” is warranted for China investors as regulatory upheaval eases and authorities target economic growth and stability. “After roaring back from the initial COVID outbreak, the Chinese economy has been through a more difficult spell,” writes Ninety One in its latest China report, titled “Tiger, Tiger: What investors can expect in the Chinese…

The RBA is lagging its global peers with light touch monetary policy and lax guidance that will hinder, rather than help, markets and the economy. “The RBA had a good first 18 months of Covid and then it came off the rails a bit towards the end of last year and into this year,” Stephen…

Uncertainty has returned to the market after a bumper 2020, fuelled by persistent inflation and a pandemic that never really went away. But in its latest alternatives outlook, JPMorgan warns that investors aren’t seeing the forest for the trees. “Up close, the “trees” in the 2022 outlook are clear,” writes Anton Pil, global head of…

A storm has hit global equity markets. But investors should ignore the blood on the floor and focus instead on the big structural changes that will underpin earnings for decades to come. “The storm that’s hit Australian equity markets in the last couple of days is a storm we’ve been sitting in for the best…