The rhythm of life is no different to the rhythm of economic and corporate cycles. The optimism of birth, the excitement of growing up, the cynicism arising from the compromises that come with maturity, the tumult of unfair turns and the joys of victory, all in turn impacting upon performance.... Show More
Although much of the focus remains on the February market activity, a tipping point between unemployment and inflation in the US approaches and so inflation remains a key risk. February revealed the first cracks in the relative market stability of the last year, as higher inflation fears both drove bond... Show More
A2 Milk has posted great results with an almost 50% increase in revenue, but it strengthens the perspective that many valuations of businesses remain disconnected from whatever levels of cashflow are evident. It’s as if a bunch of birds in the bush are better than one in the hand. Show More
Bond markets recently slapped equity investors in the face with a 50-basis point reminder of who is really in charge here. As the famous quote from James Carville goes: “I used to think that if there was reincarnation, I wanted to come back as the president or the pope or... Show More
In the context of the Sir John Templeton quote “… Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria …” we are clearly still in the optimistic phase. Show More
It is a continuing curiosity of investing that people can be so obsessed with trying to predict the future yet at the same time find it so difficult to think beyond the present. Show More
There are lots of reasons why investors get excited about small cap stocks, particularly in Australia: the significantly larger opportunity set outside of the top 100 companies, the higher growth rates that small companies can achieve, and the myriad of successful individual stock stories that abound. Global academic research has... Show More
Another year (almost) over, and assets have again been on a tear. All ASX sectors have performed well this year, with most generating double digit returns, consistent with global experience. The other global norm is the notable sectoral exception to this great performance; Telecommunications has been the laggard, underperforming by... Show More
Currently, the market’s ‘story’ for the global banks is not a positive one. Increasing regulation, the threat of fines and lawsuits, and a general investor-apathy have conspired to make banks an unpopular investment. Nick Kirrage, Portfolio Manager at the Schroder Global Recovery Fund, says it’s this negative story that’s created... Show More
The concept of ‘herding’ is a powerful lesson that investors should not ignore. Herding is the bias that can lead investors to follow the crowd, whether they genuinely agree with what they are doing, or are just scared of being left standing alone. Show More
Next to Materials (especially Resources), Industrials have been the sector which has added most to Fund performance through the past couple of years. We often address the logic behind our position in Resource names, and in recent years have also consistently spoken to the impact the Bond bubble has had... Show More
Martin Conlon is Head of Australian Equities at Schroders and oversees the investment of over $10billion in assets. Conlon’s formative years were during the tougher economic times of the late ‘80s and early ‘90s. In this exclusive interview, we learn how 30 years of experience shapes how he invests today. Show More
Don’t miss out on hearing from 14 of Australia’s most successful investors at The Investor Event That Moves Markets. Tickets sold out within 36 hours last year so secure your seat now: Show More
With markets currently nervous and also expensive, we reached out to a panel of fund managers to ask: “What strategies or techniques allow you to remain invested even if valuations appear stretched?” Read below for individual responses from Nikko AM, Schroders, Monash Investors, and an exclusive interview with Giselle Roux,... Show More
At Schroders, we believe there are two significant downsides to the traditional fixed strategic asset allocation approach used by many investors. Firstly, the timing of when a portfolio commences and the performance of shares over the investment horizon will determine the future outcome, hence the saying ‘timing is everything’. You... Show More
It is very easy to get carried away and as the saying goes “put all your eggs in one basket”. The problem with many investor portfolios with a high allocation to a few listed shares and property, is a large exposure to the same themes, very low protection from certain... Show More
The ‘outside view’ in stock market terms is complex. Interest rates, economic growth, human behaviour, liquidity, valuation levels and a myriad of other variables, play a part. In looking at most of these drivers from a longer term perspective, one thing is obvious. Almost all are at extremes when considered... Show More