Platypus still bullish on China and commodities
Growth in China will keep commodity prices high for a few more years, even as much of the Australian equity market continues to battle in the new economic environment, according to Platypus Asset Management.
Aside from mining companies and major banks, the core industrial base of Australian companies has hardly grown since the global financial crisis, and the earnings outlook for most of the market over the next 12 months is flat at best, said Donald Williams, Platypus founder and chief investment officer.
Key factors in recent and ongoing market sluggishness include the Reserve Bank of Australia, which has hiked rates in order to blunt inflation with little regard for the domestic economy; a strong Australian dollar, which has hurt exposed sectors such as tourism or those that rely on exports; and Federal Government policy, Williams said.
Uncertainty over policy and new taxes in the pipeline had both caused concern for domestic and foreign investors, he said.
Williams said he was “sceptical of the China sceptics”, and added that policy errors seem to be less common in China, and he had confidence they could improve the wealth and income of the population without major disruptions or inflationary problems.
The economy could continue to go sideways for several more years but the commodity boom still has quite a way to run, he said.
Recommended for you
Retailisation of private markets such as evergreen funds may seem like appealing options for wholesale and retail investors, but providers risk undermining trust if their products are unclear.
Ethical investment manager Australian Ethical has seen its funds under management rise by a third over FY25 to close out the year at $13.9 billion.
BlackRock Australia’s head of intermediary distribution James Waterworth has taken up a new distribution role at an alternative asset manager, while Antipodes has hired a distribution director.
BlackRock’s iShares ETFs have reported a record first half for inflows, gaining US$192 billion in the past six months, to see overall ETF assets under management rise to US$4.7 trillion as it launches its first active ETF in Australia.