Defensive investment products in demand: Investment Trends
A cautious approach to an improving yet still volatile market is causing a boom in beta-oriented and defensive investment products, according to the Investment Trends Investor Product Needs report.
Growth in unlisted index funds and put and call warrants have shot up by 58 per cent and 64 per cent respectively from 2011 to November 2012.
ETFs and hybrid securities have also seen growth of 25 per cent and 21 per cent respectively, according to the report.
Self-managed super fund investors hold approximately two thirds of the hybrid securities market, the report said.
Cash holdings are also continuing to build up, with excess cash increasing, the report said.
Investors’ cautious behaviour is driving them to focus more on income and less on capital growth. This continued change in focus has helped shape the demand for different products, the report said.
Investors remained fearful with muted return expectations over 2012, with many remaining on the sidelines in cash, Investment Trends principal Mark Johnston said.
However, investor return expectations have spiked from September last year to February, hitting a 20-month high of 8 per cent, Johnston noted.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
