Lonsec Webinar Series aims to provide practical, actionable insights that add real value to the investment and advice solutions. We bring together leading industry practitioners to equip financial advisers with educational topics and current issues in the market. We partner with global fund managers to bring you the latest innovations and insights. Please find the insights from our partners below.
Fidelity – Choose the ‘equity escalator’ not the ‘equity rollercoaster’
One of the most frequently cited statistics in tennis is the number of unforced errors a player makes – that is, the points that are lost to self-imposed silly mistakes such as hitting the ball into the net. In contrast, a forced error is one which can be attributed to the opponent’s good play, a pinpoint serve which hits the line before the player can react.
AllianceBernstein – Outlook hinges on pandemic’s course
The coronavirus pandemic and the economic cost of policy measures aimed at mitigating its effect resulted in extreme market turbulence during the quarter.
Volatility jumped above the levels experienced in the 2008 global financial crisis as stocks swung wildly. When the S&P 500 Index bounced back by 17.6% over three days through March 27, it was the biggest three-day percentage rally on record since 1933.
Pendal – Bonds, Income & Defensive Strategies
Opportunities for higher income
(but you need to be careful)
CORONAVIRUS fears significantly impacted credit markets last quarter as virus infections increased across the globe. Concerns about health, GDP and corporate profitability drove risk-off price action across all markets as companies warned of potential negative effects.
In an effort to cushion the virus’s impact on economic growth and markets, central banks eased monetary policy further and conducted quantitative easing measures. Governments around the world announced significant fiscal packages (10%+ of GDP) to support employment and stimulate economies. These measures had a positive impact on sentiment – credit and equity markets recovered some of their losses later in the month of March.
Legg Mason – Investing In the ‘Real Asset’ Australian Dream
Real Assets may hedge against the unavoidable rising cost of living, due to their ‘everyday-life’ nature.
Own the Real Assets
Real assets such as gas and electricity grids, utilities, toll-roads or office, distribution and retail properties, are the ‘Real’ tangible building blocks of our daily lives.
From the moment we wake and switch on the lights (e.g. AGL Energy), turn on the gas (AusNet Services and Spark Infrastructure networks), drop the kids at childcare (Arena REIT as landlord), drive to work (Transurban’s toll roads), pick up the groceries (at Vicinity Centres or Scentre Group shopping centres), or, (when travel restrictions are lifted) take that holiday flight (from Sydney Airport) – real assets are there helping to make things happen.
Ardea Investment Management (Fidante) – Diversification Lessons from the March Quarter
The March 2020 quarter reminds us that the perception and the reality of portfolio diversification can turn out very different in adverse market environments. But that’s precisely when multi-asset investment portfolios need reliable diversification the most.
Many investments claim to offer diversification benefits only to end up highly correlated with equities on the downside and incurring outsized losses precisely when their advertised diversification benefits were most needed.