While it’s too late in the year to say happy new year, I hope 2023 is good to you and investment markets are kind!
On that note, markets have continued to provide challenging conditions for investors, but our recent strategic asset allocation review is providing cause for optimism in some parts of the market.
What’s in store for markets in 2023?
Return expectations have improved following the sell-off in many asset classes in 2022, though volatility estimates have been revised higher for most asset classes given inflation challenges, potentially more volatile business cycles, broadly higher interest rates and less supportive liquidity conditions. Equity market expectations have also improved, specifically small caps, Australian equities and global emerging markets, which is reflected in the allocation to these sectors in our portfolios and recent returns (particularly in Australian equities).
Not surprisingly, the over-arching themes influencing portfolio construction for the year ahead are familiar ones: inflation protection, the role of bonds, the outlook for real yields, managing geopolitical risks and the energy transition.
In terms of our expectations for portfolio performance in the year ahead, given the significant adjustments in cash, bond and credit markets over the past year, we’re anticipating returns for more defensive portfolios will improve the most. With expectations for most asset classes improving, despite the continuing volatility, we believe there will be better opportunities for portfolio objectives to be met over the recommended investment terms for investors with well-constructed portfolios.
The continuing prevalence of responsible investment
As the demand for and importance of responsible investment considerations grow, the professional development opportunities that support advisers in this space will also need to increase. There are a number of events and activities that the team is involved in which aim to support our industry in understanding and implementing responsible investment practices.
- Our webinar with a panel of ESG thought leaders on 9 March is shaping up to be a great discussion on global regulations and disclosure changes, including how it will impact different parts of our industry. Our very own Dugald Higgins will join Simon O’Connor, CEO of RIAA, Fiona Reynolds, ex-PRI chief and independent director, and Liza McDonald, Head of Responsible Investments at Aware Super, to discuss this important topic and the changes that will shape the industry over coming years. Early registrations for this event are open and you can register here.
- We’re a sponsor and panellist at the upcoming Investor Daily ESG Summit in both Sydney (23 March) and Melbourne (29 March). This event will provide practical and client-focussed support and insights on responsible investing for financial advisers. We have a limited number of free tickets available to our clients so if you’re looking for a responsible investing professional development opportunity, please get in touch with our team on [email protected]
Welcome to Glenn Boyes
As we farewelled long-standing team member John Nicol, we welcomed Glenn Boyes into the combined Head of Sales role across the FE fundinfo and Zenith offerings. This is an important new role for the business as we continue to integrate the two brands and their broad product and service offerings, and Glenn’s experience and expertise make him an ideal appointment to the role.
Glenn initially joined our business in August last year as Head of Sales for our technology partner and fund manager offering. Prior to that, he worked with IRESS where he led a number of sales and product delivery teams across the wealth management market. Based in our Melbourne office, Glenn will be responsible for a large team across the country and he’s looking forward to meeting with you over the course of the year.
Kind regards
David Wright
CEO
