Gold – the only ‘safe haven’ asset?
Gold prices have risen amid the Ukraine crisis. However, as this shocking situation evolves, we think gold remains set to become the ‘TINA’ (there is no alternative) safe haven asset. The Russian invasion of Ukraine has had many consequences – first and foremost is its devastating humanitarian impact. While we cannot lose sight of how…
Acceleration to Asia
In the last two decades, Asia has become a powerhouse of global growth. Demographics and digitalisation have fuelled economic and business expansion, and this has played an important feature in the management of the COVID-19 crisis and the region’s resilient economy. Looking ahead to a post-pandemic world, we believe a new economic order will prevail,…
What inflation means for fixed income portfolios
With Australian core inflation spiking in December, it is essential to consider the impact of inflation on asset allocation. Persistent high inflation has several implications for credit markets, which we believe need to be managed via both fixed and floating rate strategies. There are also a few options for investors looking to mitigate the impact…
Automation and reshoring – key investment themes
The twin themes of automation and reshoring will bring opportunities for investors for years to come. We look at the reasons behind their rise and their ESG implications. Among the many trends accelerated by the pandemic are automation and reshoring, which is when a company brings production closer to its home market. However, this is…
Mining Sector on Fire
The ASX Minerals and Mining Sector (XMM) has defied year to date malaise, rising about 8% as of 14 February. Financial news outlets are featuring article after article extolling the future of Australian resource companies, especially those involved in mining the metals and minerals vital for the manufacture of EVs (electric vehicles.) After years of…
Sustainable innovation – the new frontier
The asset management industry is in a solid position to support a more sustainable future by embedding ethical factors into every stage of the investment process. It also has a role in sponsoring new, greener industries while encouraging traditional sectors to evolve. However, to achieve these goals, it’s clear that some creative thinking will be…
The pandemic has changed the future of work
Remote work is ensconced. A ‘Great Resignation’ is underway in the US. Neither might last. On 8 January 2020, a 61-year-old woman from Wuhan landed in Thailand’s capital Bangkok. Within five days, she became the first recorded case of covid-19 outside China. On February 20, the mayor of Daegu, South Korea’s fourth-largest city, became the…
Energy sectors in the transition to net zero
In the latest of our stories that look beyond profit, Schroders’ Peter Fullerton explains the critical role that energy companies like Ampol play in the transition to net zero. How does the world move to a more sustainable future? One school of thought is that we need to divest from companies with a high exposure…
There’s no magic jobless rate to increase Australian wages
With the official unemployment rate now 4.2% – the lowest since 2008 – Prime Minister Scott Morrison has predicted a rate “with a 3 in front of it this year”. The Reserve Bank of Australia agrees, forecasting unemployment below 4% in coming months. Many economists have been surprised at how quickly employment has rebounded from…
Fed turns from friend to foe
At its January meeting, the Federal Reserve took no policy action, in line with expectations. The Fed’s main objective this month was to communicate its next steps for the tightening cycle that is being kicked off this year. The statement provided new guidance on the lift-off of rates which “will soon be appropriate” and on…
