Diversification the key – Russell research
The importance of a diversified approach to investment has been reinforced by today’s release of the ‘2017 Russell Investments/ASX Long-term Investment Report’ which has identified the common pitfalls experienced by Australian investors.
The report has warned that there are genuine risks for Australian investors who steadfastly rely on a singular asset class to achieve long-term investment goals.
Commenting on the report, Russell Investments chief executive, Asia-Pacific, Pete Gunning said its findings showed why more savvy investors were considering diversified multi-asset strategies.
The key findings of the report covering the 10 years to December last year included that only residential property, global bonds and Australians bonds had exceeded a typical balanced fund target; that many growth assets disappointed, including Australian shares and hedged global shares; and that while Australian property was once the top performer, this asset class had shown a slight decline.
“Gunning said that when the findings of the report were taken into account, it was long past time for local investors to consider diversifying domestic exposures with global asset classes as well as alternative assets and strategies.
Russell Investments director, Consulting, Tim Cook said that in an investing environment facing lower returns, slower growth and overvalued markets, the company believed investors needed access to a wider and deeper set of alternative investment strategies to reduce their reliance on traditional return drivers.
“Otherwise, many will be unable to grow their assets sufficiently to meet their retirement or wealth-oriented goals,” he said.
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.
