Global equities hit confidence high
Despite recent global events, Australian fund managers are favouring international shares over Australian equities for the first time in over two years, according to a survey by Russell Investments.
The quarterly Investment Manager Outlook survey found that factors in Libya, Japan, China and Europe have not stopped Australian managers from holding increased confidence in a strong global recovery.
Russell portfolio manager Scott Bennett said the outlook could be attributed to managers seeing signs of recovery in Europe, along with stronger growth in the United States.
“The strong Aussie dollar is making offshore assets appear cheap at current valuations and with all signs pointing to a recovery in developed international economies, managers are seeing increasing opportunities offshore,” Bennett said.
But while managers have not overseas factors dent their confidence towards international equities, they are mindful of possible factors that will impact on returns.
Topping the managers’ list of events to watch is the sustainability of China’s growth, with the risk of a slowdown being a significant point to watch for Australian investors.
Recommended for you
Having seen inflows of US$5.6 billion to its fixed income funds in the last quarter, Janus Henderson has closed on a deal with life insurer Guardian to secure funds to boost its product development.
One of Metrics’ four managing partners is to step back from the business next year, having worked at the firm since its inception in 2011.
VanEck’s Bitcoin ETF has amassed $290 million in assets in its first year, but the ETF provider has said financial advisers remain skeptical of the asset.
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
