Colonial First State Global Asset Management

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

Expertise

What the rise of co-working means for commercial property

Colonial First State Global Asset Management

Over the past decade, the use of space in office buildings took a collaborative turn, with activity-based working helping corporates decrease their space requirements by up to 20%. Now, co-working is the latest and rapidly growing workplace trend that will change the way we work – and invest. Head of... Show More

amazon WeWork commercial property co-working JLL

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

Colonial First State Global Asset Management KRX:051910

Big Miners the standout from results

Colonial First State Global Asset Management

The impressive cash generating power of the major miners became abundantly clear as the reporting season rolled through August, particularly those exposed to an iron ore price that has rebounded through 2017. Show More

ASX:BHP ASX:FMG ASX:RIO

How to prepare for widening spreads

Colonial First State Global Asset Management

Credit spreads, the difference in yield between a bond and a debt security with equal maturities, have tightened towards historically low levels in recent years. This has investors asking, how much further they can go and what will happen if, or more likely when, they start to widen again? Show More

Beyond digital, plenty of opportunities from disruption

Colonial First State Global Asset Management

In recent years we have been hearing a great deal about digital ‘disruption” and how it has been re-shaping the global economy and the society we live in. But are we focusing too much on the digital drivers and not enough on other areas of disruption across the economy? ... Show More

Millennials set to change the investment landscape

Colonial First State Global Asset Management

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 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

ASX:ABC ASX:BLD ASX:CSR ASX:DOW ASX:FBU ASX:JHX

Does Australia need an income tax cut?

Colonial First State Global Asset Management

When Australia posted its GDP growth results in the first quarter of 2017, the numbers told two stories. Growth of 0.3%/qtr and 1.7%/yr was on one hand, the slowest growth posted since the GFC-induced slowdown in 2009. Despite the softness it also saw the nation overtake the Netherlands as having... Show More

The growth sector most property investors overlook

Colonial First State Global Asset Management

With direct property valuations peaking, investors are searching for new ways to invest for growth. CFSGAM Head of Global Property Securities, Stephen Hayes, gives three reasons to consider investing in data centres, specialist buildings which house the infrastructure required to power modern internet usage. Show More

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

Colonial First State Global Asset Management

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 Asset Management

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 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

S&P; Rating; AAA; Fixed Income; bonds

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

Join the conversation

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 Value of the Intangible

Colonial First State Global Asset Management

Why have physical investment rates in the developed world been so meagre, despite extraordinary monetary policy, zero interest rates, high profitability and rising asset prices? 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

Could smartphones be the driver of a new economy

Colonial First State Global Asset Management

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 Asset Management

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 -