Outlook 2018: Volatility coming as central bank support winds back

Colonial First State Global Asset Management

After a favorable “risk on” year that brought numerous new highs to many stock market indices worldwide without significant drawdowns, investors have perhaps become lulled into a state of complacency and security around their investment portfolio allocations. Show More

Electric cars set to benefit investors in LG Chem

Colonial First State Global Asset Management

As the widespread adoption of electric cars gradually becomes reality, battery power is brightening the outlook for some commodities. This emerging theme appears set to drive increased demand for a surprisingly broad array of commodities – some with very little historical industrial demand, and others with a long history of... Show More

Infrastructure is the hottest ticket in town

Colonial First State Global Asset Management

Alternative managers are continuing to see increased interest from traditionally conservative clients and it seems infrastructure is the hottest ticket in town. With President Trump’s (still unannounced) plans to drive over $1trn of infrastructure investment in the US, China pledging over US$100bn in investment for “One Belt One Road”, Blackstone... Show More

What an Australian ratings downgrade means for fixed income investors

Colonial First State Global Asset Management

Speculation over a downgrade to Australia’s S&P sovereign credit rating is ramping up. There are numerous credit ratings tied to Australia’s sovereign rating and a downgrade would impact various segments across the domestic fixed income market. Here the Colonial First State Global Asset Management Fixed Income team share their varied... Show More

Australian investors chasing GFC losses offshore

Colonial First State Global Asset Management

Our Investor Insights report found that Aussie investors are taking on more risk in their search for growth, increasing their exposure to global equities in lieu of Aussie equities. The report analyses data from the Equity Preference Index (EPI) - a proprietary measure of investor sentiment by age and gender... Show More

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Managing the risks from exposure to potential stranded assets

Colonial First State Global Asset Management

In December 2013, we formed a Stranded Assets Working Group (SAWG) to assess the risks associated with potential fossil fuel asset stranding. The SAWG's assessment of the issues concluded that although the risks are real, complex and potentially material to long-term investment value, there are a number of related and... Show More

There are many great reasons for responsible investment - being in the long-term interests of clients is the best one we've found

Colonial First State Global Asset Management

Today marks a special day for our business, as we launch our eight annual Responsible Investment and Stewardship report, and seek to challenge the impression that investing responsibly requires a performance sacrifice. This year's report focuses on providing in depth insight into how responsible investment and stewardship adds value to... Show More

The Great Transition - Is technological change shrinking the demand for physical capital?

Colonial First State Global Asset Management

The shape and value of capital is changing. Technological advancements now allow consumers to access markets more cheaply in pursuit of products and services which better serve their needs. This shift from homogeneous to personalised, high quality and competitively priced products and services has begun to transform the production side... Show More

Patrick, thank you for your comment. Our intention was to note the change in pattern for Australian investors, who do appear to be looking at diversifying their exposure away from Australian equities. As the report shows, increased allocation to global equities, as well as a move to investment property hint at two ways investors are looking at bringing higher growth and diversification in to their investment and superannuation portfolios. These changes must be seen in the context of the historic home bias Australian investors have shown and that the investors in this report do not have a financial adviser. This risk we speak about is due to changing investment allocation, especially as well as some of these moves appear to be currency related given the universal allocation to global equities when the Australian dollar moved below parity against the US dollar.

On Australian investors chasing GFC losses offshore -