POWERED BY MOMENTUM MEDIA
Expected slowdown causes investors to flee equities
Institutional investors are reducing their exposures to equities as part of an expected global economic slowdown, according to research released by State Street Corporation.
Carlin Doyle, the macro strategist for State Street, said State Street’s cross border equity flows indicated that investors are displaying risk-averse tendencies and abandoning emerging market equities. Indicators are at multi-year lows, which suggests below average growth through next year.
However, the departure from equities is expected to shore up a weak United States (US) dollar, while dropping commodity prices will cause inflation to drop, as well as challenge the strength of the Australian and New Zealand dollar and the South African rand. The Japanese yen may strengthen due to the shift to anti risk currencies, and US investors will move their overseas equities surplus to safer markets.
The global credit crisis will also impact emerging markets, which were most uncontrolled during good times, Doyle said.
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
