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.

Matt

May 03, 2019

Lessons from Market History

The sharp decline in markets in the December quarter of 2018 prompted some commentators to worry that equities were headed for a bear market, technically defined as a fall of 20% from a prior peak. In isolation, periods such as these can be alarming, but history can provide some useful insights and indeed some comfort during periods of market downturns.

May 03, 2019

Where to for global growth from here?

While stock market performance so far in 2019 has been stellar – almost a mirror image of the final quarter of 2018 – it has been against a backdrop of slowing economic growth. Global economic growth is slowing in most regions round the world, which means that the pace of corporate profit growth is also under pressure. The slower pace of corporate profit growth (and note that at this stage, it is a slower pace of growth and not negative growth) does create a more challenging outlook for equities overall.

May 03, 2019

Market Update

In this month’s Market Update Charles Stodart, Investment Specialist, looks at the latest events driving investor sentiment across the major asset classes.

May 03, 2019

Bull vs Bear

The sharp decline in markets in the December quarter of 2018 prompted some commentators to worry that equities were headed for a bear market, technically defined as a fall of 20% from a prior peak. In isolation, periods such as these can be alarming, but history can provide some useful insights and indeed some comfort during periods of market downturns.

May 03, 2019

Applications now open for the 2019 AFA Awards

If you’re ready to join the advice elite, you’re invited to submit an application for either the 2019 AFA Adviser of the Year or 2019 AFA Practice of the Year Award.