Invest
Investors warned to heed global risks in financial planning
The Executive Chairman of PrimaryMarkets, a trading platform for unlisted companies, Jamie Green, issued a caution to Australian domestic investors about the dangers of overlooking global risks and crises, and their potential significant impacts on local investments.
Investors warned to heed global risks in financial planning
The Executive Chairman of PrimaryMarkets, a trading platform for unlisted companies, Jamie Green, issued a caution to Australian domestic investors about the dangers of overlooking global risks and crises, and their potential significant impacts on local investments.
Global risks, according to Green, including economic downturns, geopolitical tensions and conflicts, and exchange rate fluctuations, possess a "very real potential to adversely impact various aspects of individual businesses, the local economy, financial markets and, in fact, the entire economy more broadly."
Green illustrated how geopolitical tensions and political instability among trading partners could disrupt global supply chains, adversely affecting local businesses dependent on international trade or imports for inputs. Similarly, he referred to the Covid pandemic to show how a global health crisis could affect seemingly unrelated sectors like the new vehicle supply, due to shortages in semi-conductors.
Highlighting the importance of considering global risks in investment decisions, Green emphasized, "It is vital that investors consider global risks, alongside other risks, when putting together their investment portfolios." He advised on the necessity of diversification to shield investments from global uncertainties. "Diversification is key if investors want to insulate themselves from global risks as much as possible. This includes diversification across asset classes, geographies, industries and even company sizes," he added.
Furthermore, Green recommended investing in companies of varying sizes as a prudent measure, since different-sized companies can respond differently to economic and market conditions. He also stressed the importance of investors conducting their own research and staying informed about global economic developments and trends in various industries, regardless of seeking professional advice.
Green suggested several risk management strategies, such as currency hedging to reduce exposure to currency fluctuations and dollar cost averaging, which involves investing a fixed amount regularly, irrespective of the market conditions. He concluded by emphasizing the essence of risk management in investment planning, "Remember that risk management is not about eliminating all risks but rather about managing them in a way that aligns with your investment objectives and risk tolerance. It's essential to have a well-thought-out investment plan and to periodically review and adjust your plan and portfolio as your financial circumstances and market conditions change."
Investment insights
Centuria announces senior internal promotions, strengthening leadership team for new property growth cycle
Centuria Capital Group (ASX: CNI or "Centuria") has strengthened its senior management structure with several internal promotions, effective from Monday, 15 April 2024. The new senior roles are part ...Read more
Investment insights
Institutions and wealth managers favour fixed income over equities, research shows
New research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 ...Read more
Investment insights
Gold prices soar to record high: Two surprising factors fueling the surge
Gold prices have hit a fresh record high, nearing $2,300 an ounce in Thursday trading, and while geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve are commonly ...Read more
Investment insights
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectorsRead more
Investment insights
Institutional investors set to increase allocations to illiquid assets, MPG research reveals
A new study by international asset management company Managing Partners Group (MPG) has found that more than three-quarters (78%) of institutional investors and wealth managers plan to increase their ...Read more
Investment insights
Vanguard reduces management fee for its Australian Government Bond Index ETF
Vanguard Australia has announced a reduction in the management fee for its Vanguard Australian Government Bond Index ETF (ASX:VGB) by four basis points to 0.16% per annum, effective from Monday. Read more
Investment insights
Institutional investors and wealth managers recognise digital assets' role in diversification
A new global research study by London-based Nickel Digital Asset Management (Nickel), a regulated and award-winning digital assets hedge fund manager, reveals growing mainstream acceptance of digital ...Read more
Investment insights
Chinese and European brands dominate top 5 most valuable insurance brands: Brand Finance report
The latest Brand Finance Insurance 100 2024 report reveals that Chinese and European brands continue to dominate the ranking of the world's most valuable insurance brands. Read more
Investment insights
Centuria announces senior internal promotions, strengthening leadership team for new property growth cycle
Centuria Capital Group (ASX: CNI or "Centuria") has strengthened its senior management structure with several internal promotions, effective from Monday, 15 April 2024. The new senior roles are part ...Read more
Investment insights
Institutions and wealth managers favour fixed income over equities, research shows
New research from Managing Partners Group (MPG), the international fund management group, shows professional investors believe fixed income is becoming more attractive than equities over the next 12 ...Read more
Investment insights
Gold prices soar to record high: Two surprising factors fueling the surge
Gold prices have hit a fresh record high, nearing $2,300 an ounce in Thursday trading, and while geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve are commonly ...Read more
Investment insights
Alternative fund managers expect increased fines for regulatory breaches, survey reveals
A new study by Ocorian, a market leader in regulation and compliance services, has revealed that alternative fund managers anticipate a rise in fines for breaking regulations in their sectorsRead more
Investment insights
Institutional investors set to increase allocations to illiquid assets, MPG research reveals
A new study by international asset management company Managing Partners Group (MPG) has found that more than three-quarters (78%) of institutional investors and wealth managers plan to increase their ...Read more
Investment insights
Vanguard reduces management fee for its Australian Government Bond Index ETF
Vanguard Australia has announced a reduction in the management fee for its Vanguard Australian Government Bond Index ETF (ASX:VGB) by four basis points to 0.16% per annum, effective from Monday. Read more
Investment insights
Institutional investors and wealth managers recognise digital assets' role in diversification
A new global research study by London-based Nickel Digital Asset Management (Nickel), a regulated and award-winning digital assets hedge fund manager, reveals growing mainstream acceptance of digital ...Read more
Investment insights
Chinese and European brands dominate top 5 most valuable insurance brands: Brand Finance report
The latest Brand Finance Insurance 100 2024 report reveals that Chinese and European brands continue to dominate the ranking of the world's most valuable insurance brands. Read more