May 03, 2019
May 03, 2019 | Investments Insightz
A moment with Matthew Drennan
Returns since the start of 2019 have been strong across almost every asset class and some indices are back into record territory. A dovish pivot by Central Banks has been enthusiastically welcomed by investors and stronger corporate earnings which have beaten expectations have provided further support for equity markets, though valuations are no longer inexpensive.
Closer to home, surprisingly weak inflation data has put pressure on the RBA to cut rates, with investors also considering the consequences of policy proposals, including flagged changes to franking credits, as the Federal election looms large. Read our latest market update for more information.
On a separate note, after 13 years managing the Zurich Equity Income Fund, our strategic partner Denning Pryce announced in April that they will be ceasing operations as an asset manager following the 2019 financial year end. This decision has obvious ramifications for our Fund, our valued investors and our adviser partners. Following their announcement in April, our key focus and priority has been to protect the interests of all investors. To ensure this, we made the decision to close our Equity Income Fund in July 2019, thereby protecting valuable franking credits and ensuring an orderly wind up of the fund. For more information follow this link or speak to your Zurich account manager .
While this has been a difficult decision which I know will cause inconvenience to some of our clients, we believe it is in the best interests of all investors.
Despite having to deal with such unexpected events, my key focus since returning to Zurich 12 months ago remains reviewing our strategy to ensure we are in the best possible position to take the business forward. On this note, we are very pleased to announce that we will soon launch a new SMA option in partnership with American Century Investments and Hub24. This will be based on ACI’s very successful concentrated version of their global growth fund . Watch this space for more details.
Sticking with American Century, be sure to read the recent article featuring ACI’s Brent Puff, Senior PM on the Global Growth Funds, where he examines resilient growth opportunities in today’s market.
Also in this edition we take some lessons from history, look at the difference between bull vs bear markets, consider what comes next for global equities, and share how you can enter the 2019 AFA Adviser and Practice of the year awards.
As always, thanks for you ongoing support.