The oil shock by nature is an accruing one, not a one-off
Markets In the past 48 hours, the Russian ruble traded between 111 and 177 against the US dollar. The moves suggest traders struggle to price Russia’s economic collapse in an illiquid fashion. Over in Europe, things are getting pretty complicated. EU leaders are trying to build a comprehensive and sectionalized united economic response to the…
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…
Disrupted gas supplies will hit global prices
As economic sanctions on Russia escalate, there has been an attempt to isolate vital energy exports from the mix. This may be wishful thinking. US President Joe Biden last week said sanctions against Russia, including cutting off Russian banks and individuals from the global SWIFT transaction system, were “specifically designed to allow energy payments to…
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,…
How are markets adjusting to the ongoing crisis?
It’s been a week since Russia invaded Ukraine, and markets are still trying to adjust to the geopolitical crisis and shocking tragedy in the region. Trading across asset classes was volatile all week. U.S. stocks trended higher through Thursday despite choppy trading (especially in overnight sessions), while European stocks are at their lowest levels of…
Yondr Money raising capital to fund expansion
Neobank and rising fintech company Yondr Money, is set to raise $1.5M – $2M to fund its expansion as an alternative to mainstream banks. The Melbourne-based fintech promises to reduce costs and improve customer experiences whilst most importantly helping Australians improve financial literacy. Initial backers include Mike Smith, former CEO of ANZ Bank, who sits…
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…
Navigating uncertainty in retirement
While wealth transfer from one generation to the next is putting pressure on financial planning practices to attract younger clients, there’s no doubt that advice during the retirement years is still a mainstay of the profession. With draft retirement income covenant legislation expected to make its way through Federal Parliament by July 2022, there is…
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…
