The annual Fund Manager of the Year Awards ceremony was held last night in Sydney, with more than 20 individual and group winners announced. The awards program comprehensively covers the industry’s top performers, including senior professionals, top fund managers, boutique funds, new entrants, as well as the rising stars and leaders of tomorrow.

As the research partner for the awards, we brought our expertise to judging the 18 group award categories, recognising the very best innovations and products and services that help improve the investment outcomes for Australians.

Congratulations to Lazard Asset Management Pacific Co for winning this year’s coveted Fund Manager of the Year award. Lazard was recognised for its breadth of quality products across numerous asset class categories, evidenced by the number of nominations it received in this year’s awards, as well as a strong heritage in the market as a proponent of a ‘value’ investment style.

Congratulations to all the finalists and winners and we look forward to doing this all again next year.

Full list of finalists and winners below. Winners in bold.

Australian Large Cap Equity Fund of the Year

  • Lazard Defensive Australian Equity Fund
  • Merlon Concentrated Australian Share Fund
  • CC Sage Capital Equity Plus Fund
  • Investors Mutual Equity Income Fund
  • Perpetual SHARE-PLUS Long-Short Fund

Australian Small Cap Equity Fund of the Year

  • OC Premium Small Companies Fund
  • Perpetual Smaller Companies Fund
  • Investors Mutual Australian Smaller Companies Fund
  • Pengana Emerging Companies Fund
  • Spheria Australian Microcap Fund

Global Equity Fund of the Year

  • GQG Partners Global Equity Fund – A Class
  • Arrowstreet Global Equity Fund
  • PM Capital Global Companies Fund
  • Lazard Global Equity Franchise Fund

Global Emerging Market Equity Fund of the Year

  • Robeco Emerging Conservative Equity Fund
  • GQG Partners Emerging Markets Equity Fund – A Class
  • Lazard Emerging Markets Equity Fund
  • Realindex Emerging Markets Value – Class A
  • Pendal Global Emerging Markets Opportunities Fund – WS

Australian Property Securities Fund of the Year

  • Macquarie Australian Listed Real Estate Fund – Class A Units
  • Zurich Investments Australian Property Securities Fund
  • Pendal Property Securities Fund
  • Martin Currie Property Securities Fund

Global Property Securities Fund of the Year

  • UBS CBRE Global Property Securities Fund
  • Resolution Capital Global Property Securities Fund
  • Dimensional Global Real Estate Trust Unhedged Class
  • Quay Global Real Estate Fund

Infrastructure Fund of the Year

  • Lazard Global Listed Infrastructure Fund
  • ATLAS Infrastructure Australian Feeder Fund AUD Hedged Class
  • ClearBridge RARE Infrastructure Value Fund — Hedged
  • Colonial First State FirstChoice Global Infrastructure Securities Fund

Australian Fixed Income Fund of the Year

  • Yarra Enhanced Income Fund
  • Perpetual Diversified Income Fund
  • Pendal Short Term Income Securities Fund
  • Betashares Active Australian Hybrids Fund (Managed Fund)
  • La Trobe Australian Credit Fund 12 Month Term Account

Global Fixed Income Fund of the Year

  • Colchester Emerging Markets Bond Fund – Class I
  • Bentham Syndicated Loan Fund
  • Invesco Wholesale Senior Secured Income Fund
  • PM Capital Enhanced Yield Fund
  • Janus Henderson Diversified Credit Fund

Multi-Asset Fund of the Year

  • Australian Retirement Trust – Super Savings – Growth
  • Perpetual Balanced Growth Fund
  • CareSuper – Balanced
  • Morningstar Growth Real Return Fund
  • ipac Income Generator (Class K)

Passive – Equity Fund of the Year

  • iShares Core S&P/ASX 200 ETF
  • VanEck Australian Equal Weight ETF
  • SPDR S&P World ex Australia Carbon Control Fund
  • Vanguard MSCI Index International Shares ETF
  • iShares S&P Mid-Cap ETF

Passive – Other Asset Class Fund of the Year

  • Vanguard Global Aggregate Bond Index (Hedged) ETF
  • Betashares Australian Bank Senior Floating Rate Bond ETF
  • iShares Government Inflation ETF
  • Vanguard Australian Corporate Fixed Interest Index ETF
  • VanEck Australian Floating Rate ETF

Responsible Investment Fund of the Year

  • Nanuk New World Fund
  • Bell Global Sustainable Fund – Unhedged Class Units
  • T. Rowe Price Global Impact Equity Fund – I Class

Alternatives Fund of the Year

  • Aspect Diversified Futures Fund – Class A
  • Schroder Specialist Private Equity Fund
  • Hamilton Lane Global Private Assets Fund (AUD)
  • Challenger IM Credit Income Fund – Class A
  • P/E Global FX Alpha Fund

Innovation Award of the Year

  • Five V Capital Pty Ltd
  • JPMorgan Asset Management (Australia) Limited
  • MLC Asset Management Pty Limited
  • Kohlberg Kravis Roberts & Co. L.P.
  • Centuria Funds Management Ltd

Unlisted Real Estate Fund of the Year

  • Australian Unity Healthcare Property Trust – Wholesale Units
  • Charter Hall Direct Industrial Fund No. 4
  • RF CorVal Property Fund

Emerging Manager of the Year

  • Palisade Investment Partners Limited
  • Five V Capital Pty Ltd
  • GAM International Management Limited
  • Kohlberg Kravis Roberts & Co. L.P.
  • Polen Capital Management, LLC

Fund Manager of the Year

  • Lazard Asset Management Pacific Co.
  • Perpetual Limited PM Capital Limited
  • Vanguard Investments Australia Ltd
  • GQG Partners, LLC

Disclaimer: Lonsec Research Pty Ltd (ABN 11 151 658 561 AFSL 421445) (Lonsec) are acting as a research partner for the Fund Manager of the Year Awards (Awards) issued by Momentum Media Group Pty Ltd on 13 June 2024 The Awards are determined using Lonsec proprietary methodologies, are solely statements of opinion, subjective in nature and must not be used as the sole basis for investment decisions. The Awards do not represent recommendations to purchase, hold or sell any products or make any other investment decisions. Investors must seek independent financial advice before making any investment decision and must consider the appropriateness of the information, having regard to their objectives, financial situation, and needs. Past performance is not an indication of future performance. Awards are current for 12 months from the date awarded and are subject to change at any time. Lonsec does not represent these Awards to be guarantees nor should they be viewed as an assessment of a fund or the funds’ underlying securities’ creditworthiness. Lonsec receives a fee from the financial product issuer(s) for researching the financial product(s), using objective criteria. Lonsec rating(s) outcome is not linked to the fee or the Award. Lonsec and its associates do not receive any other compensation or material benefits from product issuers or third parties in connection with the Award. Lonsec makes no representation, warranty or undertaking in relation to the accuracy or completeness of the Awards. Lonsec assumes no obligation to update the Awards after publication. The Award is for the exclusive use of the client for whom it is presented and should not be used or relied upon by any other person unless with express permission from Lonsec. Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document and any Award or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. ©Lonsec 2024. All rights reserved.

In this month’s edition of Portfolio Pespectives, the key messages for investors are:

  • We are in the late stage of the economic cycle with economic growth in Australia moderating to 1.1% year-on-year in the March quarter, well-below trend.
  • With consumer spending accounting for 50% of Australian GDP, understanding the health of the Australian consumer is key to understanding how this cycle may ultimately play out.
  • Over the last year we have observed a ‘two-speed consumer’ whereby the impact of higher rates and cost-of-living crisis has disproportionately fallen on the younger cohort.
  • Those under the age of 44 have already cut back significantly on their discretionary spending.
  • The older, wealthier cohort have so far continued to spend. Benefiting from higher cash rates on savings and less debt, the above 55-year cohort in particular, have been increasing their spending on discretionary items.
  • We think this older cohort will be key in determining how this cycle plays out. While they are still spending, we think the ‘soft-landing’ scenario remains most likely.
  • Upcoming Stage 3 tax cuts and announced budgetary measures to support the younger cohort with cost-of-living pressures add additional weight to our view

To access the full Portfolio Perspectives for June 2024, download the PDF here, along with the charts & commentary.

   

You can also listen to the Portfolio Perspectives podcast via the below icons on Spotify or Apple Podcasts.


Important Notice: This document is published by Lonsec Investment Solutions Pty Ltd (LIS) ACN: 608 837 583, a corporate authorised representative (CAR number: 1236821) of Lonsec Research Pty Ltd ABN: 11 151 658 561 AFSL: 421 445 (Lonsec Research). LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN: 151 235 406. LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but has not had any involvement in the investment research process for Lonsec Research. Please read the following before making any investment decision about any financial product mentioned in this document.

Disclosure at the date of publication: Lonsec Research receives a fee from the relevant fund managers or product issuers for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer (s) for subscribing to research content and other Lonsec Research services. LIS receives fees for providing investment consulting advice, approved product lists, model portfolios to financial services professionals and other advice to clients. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS, Lonsec Research and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the analyst(s).

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “general advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of their financial circumstances or should seek independent financial advice on its appropriateness. If the advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

Disclaimer: LIS provides this document for the exclusive use of its clients. It is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. Financial conclusions, ratings and advice are given on reasonable grounds held at the time of completion (refer to the date of this document) but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

This report is subject to copyright of LIS. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth), no part of this report may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of LIS.

This document may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to LIS copyrighted material, applies to such third-party content.

Copyright © 2024 Lonsec Investment Solutions Pty Ltd

Lonsec Holdings (Lonsec) is poised to further enhance its position as the pre-eminent provider of investment research, product ratings and managed account solutions as it announces today that its largest shareholder, Generation Development Group (GDG) is seeking to acquire 100% ownership of the Lonsec Group. Under the terms of the agreement, GDG will acquire the remaining interest in Lonsec for an upfront consideration of $197.4 million together with a deferred earn out payment of up to $55.7 million.

Lonsec considers GDG to be a highly  logical partner to accelerate the next phase of Lonsec’s growth.  The proposed transaction, which is subject to approval by GDG shareholders, will enable Lonsec to further accelerate its organic and inorganic growth strategy by providing greater access to capital, an expanded product suite and greater market access. The proposed acquisition presents multiple growth avenues to Lonsec including further development of Lonsec Investment Solutions and M&A opportunities.

Mike Wright, CEO of Lonsec, is pleased with the transaction, saying This is an exciting time for Lonsec and a recognition of the strength of the business we and those before us have built for our clients since 1994. GDG has been a substantial shareholder of Lonsec since 2020 and has a strong understanding of the Lonsec business and is committed to supporting Lonsec in its strategic plans to grow further.

“GDG are an ideal acquisition partner, intending to continue to operate Lonsec predominantly as a separate business, which means continiuty of our existing product and service propositions for our clients. This transaction will enable Lonsec to accelerate plans for further investment into its business and we are enthused about the opportunities this deal presents for the business and our clients.”

Grant Hackett – CEO of GDG, echoes these sentiments and comments Since we acquired an initial stake in Lonsec in 2020, we have witnessed the strong growth and success of the business driven by an excellent leadership team.  We are excited to increase our exposure to the business and help shape the next phase of growth for Lonsec.”

Lonsec was supported through the transaction by Luminis Partners as lead financial adviser, together with Baker McKenzie, McGrathNicol and EY Australia.

Highlights

  • Generation Development Group (ASX:GDG) acquired a minority holding in Lonsec Holdings (Lonsec) in September 2020,
  • GDG to acquire the remaining 61.9% of Lonsec’s fully diluted share capital, to be funded by a Conditional Placement and Equity Raising by GDG
  • On completion of the upcoming transaction, GDG will own 100% of the issued capital of Lonsec
  • The transaction will be settled through a combination of cash and scrip consideration
  • Subject to GDG shareholder approval, the transaction is expected to be completed in August 2024
  • GDG is committed to supporting the existing Lonsec business, further enabling accelerated growth and delivering greater balance sheet strength

For more information, you can access the GDG ASX Announcement here.

# ENDS #

About Lonsec

Founded in 1994, Lonsec has grown to become a pre-eminent Australian provider of investment and superannuation research, product ratings and managed account solutions. Lonsec is positioned at the nexus of Australia’s financial advice and investment industry, helping clients and investors make better investment decisions.

Lonsec comprises of four businesses – Lonsec Research, Lonsec Investment Solutions, Implemented Portfolios and SuperRatings. It is the leading Australian investment research house, providing financial product ratings, market insights and portfolio construction tools to empower the financial advice industry.

Its research and rating services are consistently recognised as the best in the market for quality, breadth, and adviser support. Lonsec also provides award winning, high growth managed account solutions that consistently outperform benchmarks and deliver clear value-add to advisers and clients. As at 30 April 2024, Lonsec manages over $10bn in a range of managed accounts accessible through all core administration platforms.

About Generation Development Group (GDG)

Founded in 1991, Generation Development Group Limited (GDG) is an ASX-listed company that specializes in providing development capital to financial sector businesses. GDG has over the years provided development capital to financial sector businesses.

GDG’s 100% owned subsidiary – GenLife offers a range of Investment Bonds and annuities which are designed to provide tax-effective investment solutions for investors.

APRA is consulting with industry on the superannuation industry’s approaches and plans to maintain the financial strength needed to operate their businesses effectively and protect their members’ best financial interests.

SuperRatings was pleased to deliver a submission in response to the consultation on “Financial resources for risk events in superannuation: Operational risk financial requirement”, which seeks feedback and comments on APRA’s proposed amendments to SPS 114.

Current guidance for APRA regulated superannuation is that funds maintain an operational risk reserve equivalent to 0.25% of net assets. This is likely to still be the case following the current SPS 114 consultation.

New proposed changes are expected to better position super funds to use the ORFR to manage the impact of disruption and smooth operational risk related losses fairly across different cohorts of beneficiaries.

ORFR reserves have grown from an estimated $2.1 billion at the time of introduction of ORFR requirements, to over $6.4 billion, held outside of members accounts, and of which the majority has been member funded (we estimate $5 billion). During this period, only a small portion of this amount has been released from ORFR reserves to meet operational losses.

With the increase of Superannuation Guarantee to 12%, and the increase to the contribution cap, members will be levied further to maintain the ORFR reserves, either by way of member funded or indirectly through the cost of Trustee capital.

Whilst SuperRatings welcomes the proposed changes which are expected to better position super funds to use the ORFR to manage the impact of disruption and smooth operational risk related losses fairly across different cohorts of beneficiaries, we don’t believe that the current mechanism of funding ORFR is optimised when viewed through a lens of equity or members best financial interest. This is best exemplified by those members who are exercising choice and moving between funds. In this scenario, these members will have left their ORFR contribution behind for others to potentially benefit from – perhaps even having to contribute again on arrival into their new fund.

Recognising the need for the superannuation industry to constantly innovate, SuperRatings has worked to develop a solution, ORTC Protect, to address these key limitations of the current framework. This means there is a clear and present opportunity to unlock this benefit for members and facilitate the sustainability of the superannuation industry by reducing friction points in the merger process.

Read our full submission to APRA here.

For more information contact:

Scott Abercrombie
Executive Manager, Innovation
Tel: 1300 826 395
Mob: +61 400 500 267
scott.abercrombie@superratings.com.au

In this quarterly webinar, host Marc Hraiki is joined by Nathan Lim for a market update and outlook from the CIO’s Office, as well as a summary of changes to asset allocation. ​​Deputy CIO Deanne Baker also provides performance and positioning updates on the Lonsec Multi Asset, Lonsec Retirement and Lonsec Sustainable Managed Portfolios, while our portfolio manager Danial Moradi gives an update on the Lonsec Listed Managed Portfolios.

If you wish to only view a particular part of the webinar, here are timestamps for the various sections:

  • Update from the CIO – 1:37
  • Multi-Asset Portfolio Update – 8:29
  • Listed Portfolio Update – 14:29
  • Retirement Portfolio Update – 21:17
  • Sustainable Portfolio Update – 25:45
  • Q&A – 30:32

 


The information in this video is prepared by Lonsec Investment Solutions Pty Ltd ABN 95 608 837 583 (LIS, we, us, our), a Corporate Authorised Representative (CAR) No. 1236821 of Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec Research). Any express or implied rating or advice presented in this video is limited to general advice and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision you must consider your financial circumstances or seek personal financial advice on its appropriateness. Read the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product.

Past performance is not a reliable indicator of future performance. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this video, which is drawn from information not verified by LIS. This video may also contain third party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material.

The information contained in this video is current as at the date of publication. Financial conclusions, ratings and advice are reasonably held at the time of publication but subject to change without notice. LIS assumes no obligation to update this document following publication. This video is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. This video is not to be distributed without the consent of LIS. Except for any liability which cannot be excluded, LIS and Lonsec Research, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this video or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright © 2024 Lonsec Investment Solutions Pty Ltd.

You may not reproduce, transmit, disseminate, sell or publish this video without our written consent.

This week Lonsec was honoured to be awarded Best Investment Research Firm at the inaugural Australian Wealth Management Awards.

At Lonsec Research, we are aware of the trust placed in us by advisers and their clients and as such, end investors are top of mind when we evaluate and rate funds. It is a privilege we do not take lightly and one that is recognised by all the Lonsec team. It is this commitment to end investors that has led to new products, new technology that helps us do our jobs better and new look reports that make it easier for advisers to do their jobs.

Our clients and end investors are at the heart of what we do at Lonsec and while we have grown and our product offering has evolved over the past 30 years, we remain committed to helping all Australian make better financial decisions.

Thank you again to all our clients and partners who have helped us be recognised with this award.

In this month’s edition of Portfolio Perspectives, the key messages for investors are:

  • Inflation continues to be sticky, but how sticky it is from here is now in focus.
  • A recent IMF paper examining the historical record of inflation provides a good framework to consider how much longer will inflation remain “unresolved”.
  • Inflation took, on average, three years to be “resolved”
  • The US and Australia have now exceeded the average duration to successfully normalise inflation.
  • Wage growth remains well above levels associated with normalised inflation.
  • Australia also suffers from robust, broad money supply growth which will likely further expand following the Stage 3 tax cuts.
  • A resolution to the current bout of inflation seems further away in Australia than in the US.
  • Lonsec sees no rate cuts by the Reserve Bank of Australia in 2024.

To access the full Portfolio Perspectives for May 2024, download the PDF here, along with the charts & commentary.

   

You can also listen to the Portfolio Perspectives podcast via the below icons on Spotify or Apple Podcasts.


Important Notice: This document is published by Lonsec Investment Solutions Pty Ltd (LIS) ACN: 608 837 583, a corporate authorised representative (CAR number: 1236821) of Lonsec Research Pty Ltd ABN: 11 151 658 561 AFSL: 421 445 (Lonsec Research). LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN: 151 235 406. LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but has not had any involvement in the investment research process for Lonsec Research. Please read the following before making any investment decision about any financial product mentioned in this document.

Disclosure at the date of publication: Lonsec Research receives a fee from the relevant fund managers or product issuers for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer (s) for subscribing to research content and other Lonsec Research services. LIS receives fees for providing investment consulting advice, approved product lists, model portfolios to financial services professionals and other advice to clients. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS, Lonsec Research and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the analyst(s).

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “general advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of their financial circumstances or should seek independent financial advice on its appropriateness. If the advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

Disclaimer: LIS provides this document for the exclusive use of its clients. It is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. Financial conclusions, ratings and advice are given on reasonable grounds held at the time of completion (refer to the date of this document) but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

This report is subject to copyright of LIS. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth), no part of this report may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of LIS.

This document may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to LIS copyrighted material, applies to such third-party content.

Copyright © 2024 Lonsec Investment Solutions Pty Ltd

AMP Advice has engaged BlackRock Australia and Lonsec to introduce a new category of tailored managed portfolio solutions, making it accessible to more advice practices – a first of its kind in the Australian market.

In this month’s edition of Portfolio Perspectives, the key messages for investors are:

  • Recent macroeconomic data supports our expectations for a “soft landing”
  • The US yield curve has set a new record for the time inverted
  • Lonsec believes the inversion reflects more than a view that inflation will be sticky
  • We believe the market is becoming increasingly weary of the unsustainable fiscal path of the US deficit
  • US government interest payments on its debt are on pace to exceed spending on National Defence in 2024, becoming its third largest expenditure
  • The Australian government can demonstrate a pathway to lower absolute and relative debt levels.
  • We believe the relative fiscal performance between nations should become a more prominent factor which keeps us overweight Australian government bonds versus the US

To access the full Portfolio Perspectives for April 2024, download the PDF here, along with the charts & commentary.

   

You can also listen to the Portfolio Perspectives podcast via the below icons on Spotify or Apple Podcasts.


Important Notice: This document is published by Lonsec Investment Solutions Pty Ltd (LIS) ACN: 608 837 583, a corporate authorised representative (CAR number: 1236821) of Lonsec Research Pty Ltd ABN: 11 151 658 561 AFSL: 421 445 (Lonsec Research). LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN: 151 235 406. LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but has not had any involvement in the investment research process for Lonsec Research. Please read the following before making any investment decision about any financial product mentioned in this document.

Disclosure at the date of publication: Lonsec Research receives a fee from the relevant fund managers or product issuers for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer (s) for subscribing to research content and other Lonsec Research services. LIS receives fees for providing investment consulting advice, approved product lists, model portfolios to financial services professionals and other advice to clients. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS, Lonsec Research and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the analyst(s).

Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “general advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any particular person. Before making an investment decision based on the rating or advice, the reader must consider whether it is personally appropriate in light of their financial circumstances or should seek independent financial advice on its appropriateness. If the advice relates to the acquisition or possible acquisition of a particular financial product, the reader should obtain and consider the Investment Statement or the Product Disclosure Statement for each financial product before making any decision about whether to acquire the financial product.

Disclaimer: LIS provides this document for the exclusive use of its clients. It is not intended for use by a retail client or a member of the public and should not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by LIS. Financial conclusions, ratings and advice are given on reasonable grounds held at the time of completion (refer to the date of this document) but subject to change without notice. LIS assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, LIS and Lonsec, their directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it.

This report is subject to copyright of LIS. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth), no part of this report may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of LIS.

This document may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to LIS copyrighted material, applies to such third-party content.

Copyright © 2024 Lonsec Investment Solutions Pty Ltd

In this month’s edition of Portfolio Pespectives, the key messages for investors are:

  • We remain late cycle but believe a “soft landing” is still plausible
  • The services sector, not manufacturing, has a more significant impact on the global economy
  • As long as the Services Purchasing Managers Index across the US, Eurozone, Japan and China remain above 50, a “hard landing” is unlikely
  • Retail spending continues to support the services sector because employment conditions remain strong
  • Inflation remains sticky and Central Bank interest rate cuts may take longer than the market expects
  • There is a risk that the Reserve Bank of Australia will have to raise interest rates
  • Consider adding Global Small Caps to your portfolio

To access the full Portfolio Perspectives for March 2024, download the PDF here, along with the charts & commentary.


Important Notice: This document is published by Lonsec Investment Solutions Pty Ltd (LIS) ACN: 608 837 583, a corporate authorised representative (CAR number: 1236821) of Lonsec Research Pty Ltd ABN: 11 151 658 561 AFSL: 421 445 (Lonsec Research). LIS and Lonsec Research are owned by Lonsec Holdings Pty Ltd ACN: 151 235 406. LIS creates the model portfolios it distributes using the investment research provided by Lonsec Research but has not had any involvement in the investment research process for Lonsec Research. Please read the following before making any investment decision about any financial product mentioned in this document.

Disclosure at the date of publication: Lonsec Research receives a fee from the relevant fund managers or product issuers for researching financial products (using objective criteria) which may be referred to in this document. Lonsec Research may also receive a fee from the fund manager or product issuer (s) for subscribing to research content and other Lonsec Research services. LIS receives fees for providing investment consulting advice, approved product lists, model portfolios to financial services professionals and other advice to clients. LIS’ and Lonsec Research’s fees are not linked to the financial product rating(s) outcome or the inclusion of the financial product(s) in model portfolios. LIS, Lonsec Research and/or their associates may hold any financial product(s) referred to in this document, but details of these holdings are not known to the analyst(s).

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Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives.  Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.