-
Gold10 December 2018
Gold Hedging: A Precious Lesson Learned
Joe Foster, Portfolio Manager and Strategist
Once a key strategy of gold companies, hedging is now nearly non-existent. This, along with a significant commitment to reduce debt, demonstrates the financial health and stability of today’s gold industry.
Vector Insights07 December 2018
Long or 'Shorten' banks
by Arian Neiron, Managing Director
Read This NowThe revelations about the big banks’ misconduct that were uncovered by the Hayne Royal Commission have provided reasons enough to avoid bank shares, yet the final recommendations of Commissioner Hayne are still unknown. Additionally, polls indicate next year’s Federal election will be won by Labor, who have already announced policies that could impact banks. Surprisingly, despite these headwinds, banks have done better than the broader Australian equities market in 2018. How the banks will perform in 2019 is anyone’s guess. ETFs allow investors to position themselves for any possibility. Here we describe below the different ways investors can position themselves with ETFs for any outcome of the Royal Commission, the election and anything else that may come up in 2019.
Infrastructure30 November 2018
Infrastructure keeps on truckin'
by Arian Neiron, Managing Director
Read This NowIn 2018 volatility returned to mainstream asset classes. The recent October market rout has heightened risk awareness however not all asset classes performed the same. Global Infrastructure outperformed Australian and International equities, a testament to its defensive nature.
Global infrastructure assets are also being used to provide stable income for investors in substitution for traditional high-yielding blue-chip Australian equities in light of the potential changes to the franking credits system.
Now is an ideal time to consider an allocation to Global Infrastructure to your clients’ portfolios.
Vector Insights22 November 2018
There are significant opportunities in China (if you know where to look)
by Arian Neiron, Managing Director
Read This NowHere is the evidence for backing Chinese investments.
Gold12 November 2018
A Trick-or-Treat Month for Gold in October
by Joe Foster, Portfolio Manager and Strategist
Read This NowGold saw a treat with gains due to market volatility in early October, only to encounter a trick later when it gave up much of its gains. However, mounting risks and central bank demand are poised to support gold into 2019.
Vector Insights08 November 2018
China's consumer revolution
by Arian Neiron, Managing Director
Read This NowThere has been much talk about the trade war between China and the US. While it has been said that in the US the consumer is king and the US consumer has been behind much of that nation’s growth, no such claims have been made about the Chinese consumer - yet.
While the US has around 330 million potential consumers, China has 4 times that many at almost 1.4 billion. China is an economy undergoing a profound transformation in which consumer-oriented sectors are gradually replacing heavy industry and low cost manufacturing as the country’s economic engines. As demographics shift, the Chinese consumer could be the economic defence in any ongoing trade dispute.
Vector Insights26 October 2018
Understanding the basics of bonds
by Russel Chesler, Director, Investments & Portfolio Strategy
Read This NowBonds are complicated investments. Their price determined by not only the characteristics of the underlying issuer, but also by a broad range of macro-economic factors, including the level of interest rates. The longer dated a bond, the more exposed it is to rate movements. However, investors can position their portfolios to minimise the impact of rising rates by shortening bond duration.