POWERED BY MOMENTUM MEDIA
Investors take another look at Australian bonds
Domestic bonds are typically under-represented in Australian portfolios, but recent volatility in the share market is making investors reassess them.
Australians have a total asset allocation to government and corporate bonds of about 13 per cent, whereas in other G20 countries the figure is between 20-30 per cent, according to Omega Global Investors director of investments Mathew McCrum.
He added that with an increasing number of superannuation members moving out of the accumulation phase and into the drawdown period, there would be a rise in demand for defensive assets.
"Australia is in an enviable fiscal position compared to many other developed nations and Australian Government bonds provide an attractive yield, especially on a risk-adjusted basis," said McCrum.
"Australian corporate bonds also compare very favourably to their European and US counterparts, especially in the current market. This gives investors access to increased diversification and higher yields," he added.
Omega Global Investors has released the Australian Bond Fund, which McCrum said carefully selected bonds on a risk-controlled basis because "simply following the benchmark is inefficient".
The Australian Bond Fund will open on 9 September and will start with $200 million in funds under management.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
