Investors turn to home
Confronted by continuing market turmoil, investors are likely to take on a home country bias, according to Fidelity International’s global head of institutional investment, Michael Gordon.
Gordon said this week he believed a “more local world” would emerge from the current turmoil, one where investors favoured local, home country stocks over international investments as a result of emotion overriding reason.
“Home is where the heart is and we should expect investors to feel safer in their own backyards for a while,” he said. “They will feel most confident holding domestic stocks where their governments will protect both them and their institutions.”
Gordon said he also believed that those institutions and those who traded for them were likely to prefer local counterparties where they are available.
He said that he believed complexity would now give way to simplicity and that firms would now become more focused on what they could do well and what they could adequately control and monitor.
Gordon said that in the coming months, funds would flow to those with experience in the practices of traditional markets and investors would be wary of anything new.
Recommended for you
Australian Retirement Trust (ART) has announced Helen Rowell has been appointed as the fund’s new chair, set to succeed Andrew Fraser.
Delayed climate action could wipe hundreds of billions from superannuation balances by 2050, according to new analysis from Ortec Finance.
APRA deputy chair Margaret Cole has called on superannuation trustees to accelerate efforts to support members moving into retirement and to strengthen protections against growing cyber and operational risks.
Super trustees need to be prepared for the potential that the AI rise could cause billions of assets to shift in superannuation, according to an academic from the University of Technology Sydney.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
