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Colonial First State Global AM

Colonial First State Global Asset Management invests approximately $200 billion across equities, fixed interest and credit, cash, listed and unlisted property and infrastructure.

Millennials set to change the investment landscape

Colonial First State Global AM

Millennials have recently become the largest demographic cohort and by 2030 will represent the largest source of income and consumer spending, earning two out of every three dollars in Australia. While much has been written about how the shift in spending patterns will change the retail landscape relatively little research... Show More

Infrastructure is the hottest ticket in town

Colonial First State Global AM

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

BoJ’s unconventional policies driving Japanese investors to do the same…

Colonial First State Global AM

Some 16 years after adopting QE the BoJ now owns 40% of the JGB Market. The Bank of Japan (BoJ) was the first central bank to adopt quantitative easing (QE) in March 2001, and have experimented with this unconventional policy ever since, even buying equity market ETFs and JREITS in... Show More

Australian Budget: Resetting the debt narrative

Colonial First State Global AM

The 2017/18 Commonwealth Budget has seen the Government reset its Budget and economic narrative, embracing debt to fund infrastructure, using new taxes to fund focussed spending initiatives on jobs, small businesses, health, housing affordability and education, while also addressing the revenue issue evident in recent years. Our Economic and Market... Show More

What an Australian ratings downgrade means for fixed income investors

Colonial First State Global AM

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 AM

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 AM

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 AM

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 AM

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

Could smartphones be the driver of a new economy

Colonial First State Global AM

Could smartphones be the driver of a new economy? Information, as the grease in the wheels of an economy, determines an economy's efficiency. The economists' assumption of rational firms and consumers has long been ridiculed. Yet, is it not unfair to label firms and consumers as irrational? Instead, economists coined... Show More

Hold on to your seats - the global economy is in transition

Colonial First State Global AM

Hold on to your seats - the global economy is in transition. Developed economies are suffering from more than just a financial crisis hangover. The rise of the information economy at the expense of the industrial economy (otherwise known as 'secular stagnation') should herald an altogether better global economy. However,... 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 -