Future fund asset allocations. No particular thoughts attached to the below, I just like to note what they are. Lots of unlisted stuff, private equity, sizeable Alts and infrastructure exposures.
They’ve been worried about persistent inflation upending the merits of the iconic 60/40 portfolio, and so have added/prioritized lots of other stuff.
We’ve gone somewhat the other way, deciding that a) inflation would be tamed (so far, that is looking reasonable, although it’ll be a big forthcoming week (till 31 Jan) on the inflation front with PCE for the US and the quarterlies for Aus) b) that the repricing in bonds was very unpleasant, but, having gone through it, buying AGB’s at 4.3% and US treasuries at 4.1% was the sort of thing that had historically worked out very well.
As such less complexity, rather than more, was preferable.
Their EM exposure is punchier than ours, although we’ve been bolstering up our exposures (from very low nearish zero single digit exposures) as the emerging markets have underindexed (i.e. massively underperformed, and thus offers more compelling relative value).
Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.
This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.
Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.