Analysis

By Andy Schofield* Global megatrends are reshaping the world economic order. Rapid economic growth in emerging countries is leading to mass urbanisation in cities across Asia, Africa and South America. As these cities undergo a gradual transition from production to consumer industries, and increase their financial and business services, exciting opportunities will emerge for global…

By Matthew Peter, Drew Klease and Jimmy Louca* China’s annual economic growth has slipped to around 7 per cent and is facing an increasingly uncertain outlook. There are three broad potential scenarios for China: the good, the bad and the ugly. And the ugly – including a devaluation of the Chinese yuan to boost domestic…

by Matthew Peter (Chief Economist) and Jimmy Louca, CFA (Senior Economist) On the heels of a sharp public reaction to last year’s budget, the Federal Government’s prescription this year focused on growth and assistance for low-to-middle income earners. There was a small expansion in the deficit but the budget is still projected to return to surplus…

by Katrina King, Director, Research & Strategy – Global Liquid Strategies (QIC) In an environment where economists are divided over the future outlook for the Australian economy, institutional investors should consider increasing their portfolio’s weighting to active strategies where portfolios can be focused on opportunities to deliver strong returns over the next five years.  That…

by Phil Miall, Head of Credit Research & Strategy, QIC Superannuation funds’ return objectives will become harder to hit through beta alone on the heels of an intensification of the ECB’s quantitative easing program and a clutch of central bank interest rate cuts. Selective credit market investments, including high-yield investments in the beaten-up US energy sector…

by Matthew Peter, Chief Economist, QIC The stylised traditional asset allocation model – with around 60 per cent of the portfolio devoted to growth assets dominated by listed equities and 40 per cent to defensive assets significantly weighted to government bonds  – has served investors well over many years notwithstanding bumps along the way. But no…

Kent Wilkes, Director, Fixed Interest and Inflation, QIC The ‘Happy Season’ is not usually associated with bargains. Quite the opposite. Spending up is the norm and indulging is portrayed as a virtue.  There are, however, investment bargains to be had for those willing to look beyond the headlines. Global inflation protection, for instance, is now on…

By Matthew Peter and Drew Klease* Love him or loathe him, Karl Marx had a way with words. “History repeats itself: first as tragedy, second as farce” is among his most memorable quotes. While Marx might be turning in his grave as investment industry people selectively use his words, they are utterly appropriate as there…

By Matthew Peter, Chief Economist and Jimmy Louca, Senior Economist, QIC Just a few years ago, the AUD marked itself as a new currency heavyweight by achieving and then surpassing parity with the greenback. They were great days for Australians travelling overseas and importers. But as the much (incorrectly) quoted line says, “The past is…

by Phil Miall Head of Credit Research & Strategy, QIC The traumas of 2008/09 were the ‘never again’ moment for a generation of policymakers and regulators. A near-catastrophe once in a lifetime is enough. Preventing a repeat is the priority.   Monetary policy has been lent on as the principle tool of macroeconomic stabilisation, with…

by Matthew Peter* Movie buffs will know that the full name of Stanley Kubrick’s 1964 satirical masterpiece is “Dr Strangelove or: how I learned to stop worrying and love the bomb.” It’s a mouthful, so it’s no wonder that most people only know it by the far shorter “Dr Strangelove.”   Compared to the threat of…

(Pictured: Christine Bartlett) by Greg Bright National Australia Bank’s asset servicing business has a long and illustrious history. It’s still the biggest in the market and the last Australian-owned business of its kind. It’s been on both the acquisitive side and the seller side of the market before, with at least three lengthy negotiations for deals…