The Point: Professional investing in Australia with Perpetual

The RBA seems happy that inflation is heading in the right direction, but it’s a difficult path from here to the 2-3% band, notes Pendal’s head of government bond strategies Tim Hext. A soft landing is more likely, but we're unlikely to see rates cuts unless the economy turns weaker.  Here's a quick overview from Pendal portfolio manager Tim Hext, who heads up government bond strategies for our In...

Inflation isn’t under control and the RBA still has work to do, argues Oliver Ge, an assistant portfolio manager with Pendal's income and fixed interest team “I think at 4.1% we're still at least a couple of hikes away,” says Oliver in our latest fast podcast. Oliver points to three things blunting the impact of rate rises: “Firstly, the Australian economy is demonstrating a level of resilience th...

It looks like RBA boss Phil Lowe's “got one more hike he's itching to do” in July or August, says our head of government bond strategies Tim Hext in our latest fast podcast “The inflation data will start to turn down from that point,” says Tim. “The RBA should then use that as a reason to be on pause for the rest of the year. “Looking further beyond, towards the middle of next year, I think what y...

China has emerged quickly from the zero-Covid era, but a property slowdown is holding the economy back. What does that mean for fixed income investors? “We think there are many strong reasons both cyclically and structurally to be favouring fixed income and bonds in portfolios right now," argues Pendal's head of income strategies, Amy Xie Patrick. “The way the China growth story is shaping up for...

Consumers are feeling gloomy, but are we still headed for recession? With inflation “sufficiently well-behaved”, the main factors to watch now are unemployment and wages, says our head of bond strategies Tim Hext in our latest fast podcast. Here Tim explains the outlook for wages and jobs -- and what it tells us about the likelihood of recession in the US and Australia. He also explains why we are...

How should fixed interest investors think about the turmoil among US regional banks? In our latest fast podcast, Pendal assistant portfolio manager Oliver Ge gives a plain-language explanation. --//-- Find out more about Pendal's fixed income strategies at pend.al/fixedinterest Pendal is an independent, global asset manager. Find out more at pendalgroup.com --//-- This podcast is for general infor...

There are a mind-boggling number of issues investors need to stay on top of in 2023: the potential for recession, government intervention, wages growth, inflation and rates to name a few. And there are differing views on these issues across the investing spectrum. To cut through the noise and find some answers, our latest podcast brings together two of Pendal’s top investment managers: our head of...

An economic recession is highly likely in 2023, says Pendal’s head of income strategies Amy Xie Patrick. How should investors respond? EXCERPT: We think an economic recession is highly, highly likely in 2023. How should investors be positioning their portfolios? An easy decision is to consider long-duration government bonds, says Amy. Regardless of whether your view is of a mild or a deep recessio...

Internet search has been upended by ChatGPT – an example of “generative artificial intelligence” that can scan existing knowledge and create new and original data such as images, text and music. Will programs such as ChatGPT bring real, sweeping change to everything we know? Or is it just the next dot com bubble? Pendal’s head of global equities ASHLEY PITTARD explains in this new Pendal Fast Podc...

In our final fast podcast for the year, Pendal’s head of multi-asset Michael Blayney talks about the lessons of 2022, how he’s valuing major asset classes right now and suitable portfolio settings. Pendal's fast podcast series will return in 2023. --//-- Find out about Pendal’s multi asset funds at pend.al/multiasset Pendal is an independent, global asset manager. Find out more at pendalgroup.com...

What will prompt central banks to stop hiking interest rates altogether? Look to wages for the answer, says Pendal’s head of income strategies AMY XIE PATRICK Excerpt: “The US Fed is looking for inflation not only peaking but coming down very convincingly to its 2% target,” says our head of income strategies, Amy Xi Patrick in her latest fast podcast. “Wage growth in Australia is only at around ab...

There are signs that inflation has peaked and is due to come off in the next few quarters. That would invariably take us to a position, maybe in Q2 2023, where it looks quite compelling for us to own bonds, says Oliver Ge, an assistant portfolio manager with Pendal's Income and Fixed Interest team. "At that point you’d already see inflation pressures come off and growth indicators start to materia...

What do this week's Budget and inflation numbers — and next week’s likely 25-point rate rise — mean for 2023? And how will that impact the role of bonds in portfolios? Here's a quick explanation from Pendal’s head of government bond strategies Tim Hext. --//-- Find out more about Pendal's fixed income strategies at pend.al/fixedinterest Pendal is an independent, global asset manager. Find out more...

Bonds can be an appropriate investment in a hiking cycle – as long as you know what to look for, argues Pendal’s head of income strategies AMY XIE PATRICK Excerpt: "Even though central banks may need to keep on hiking, now their mantra is very well flagged to the market there is hope that bonds do better in the second half of this hiking cycle. "It does mean you probably want to look at having bon...

We’re in an average recessionary market, but that doesn’t mean there aren’t opportunities, argues Pendal’s CHRIS LEES in this fast podcast. “If you don't think there's a banking crisis coming, then it's actually time to gently start buying again, and that's what we're doing," says Chris. “We think that we're in a normal recessionary bear market. We're not going into, we think, a global banking cri...

An edited excerpt from this interview with Pendal’s head of government bond strategies Tim Hext: I think the 50 percentage point rises are probably over for now [in Australia]. But you’ve got two lags going on. Firstly, it takes several months for a rise to feed through to your mortgage. So given they only started in May, the full impact of rate rises won't be felt until the end of the year around...

China is one of the few countries lowering interest rates. Pendal’s head of income strategies AMY XIE PATRICK explains why — and what it means for investors Excerpt: "The first thing to remember about these China authorities is they are not independent monetary authorities as we know them in Australia and the US. "The central bank in China has been lowering interest rates because the economy quite...

How can ASX investors pick the right mid-cap stocks in this environment of rising inflation and interest rates? Pendal portfolio manager BRENTON SAUNDERS has a few tips in this fast podcast. Brenton is a portfolio manager with Pendal's Australian equities team. He co-manages Pendal MidCap Fund and our natural resources portfolio, drawing on more than 25 years of expertise in resources, derivatives...

Few sectors of the economy are as sensitive to changes in interest rates as property. In this fast podcast, Pendal portfolio manager JULIA FORREST explains the outlook for Australian Real Estate Investment Trusts (REITs). Julia Forrest is a portfolio manager with Pendal’s Australian Equities team. Julia has managed Pendal’s property trust portfolios for more than a decade and has 25 years of exper...

Wasn’t inflation expected to taper off? We asked Pendal’s Tim Hext to explain what’s happened and what’s next. In this podcast Tim explains how the nature of inflation is changing, what's driving recession fears and which asset classes look promising. Tim Hext is head of government bond strategies in Pendal's Income and Fixed Interest team. Find out more about Pendal’...

WHEN is the right time to start buying global equities and how best to value stocks during these volatile times? Pendal global equities fund manager Nudgem Richyal has some answers in this quick podcast. Nudgem co-manages Pendal Global Select Fund with Chris Lees. The pair have been working together in global equities investing for more than 20 years. Pendal Global Select Fund is a global equities...

ESG investors can have a lot of influence over businesses, but countries are harder to influence. Will this change in the wake of Russia’s invasion of Ukraine? We asked Pendal ESG credit analyst Murray Ackman during this fast podcast. Credit ESG analyst Murray Ackman is part of Pendal's award-winning Income & Fixed Interest team. Regnan Credit Impact Trust is a defensive investment strat...

What's the outlook for inflation in Australia, how will the Reserve Bank react and is it time to consider going overweight bonds? Pendal’s head of government bond strategies TIM HEXT explains his views in this fast podcast. Find out more about Pendal’s fixed interest strategies at https://pend.al/fixedinterest. Pendal is an independent, global asset manager. Find out more at www.pendal...

Some leading indicators for China’s growth have dropped back to levels last seen at the start of the pandemic, says Pendal's head of income strategies Amy Xie Patrick in this 9-minute fast podcast. What does that mean for the global economy – and specifically for fixed income investing? “If the growth situation in China gets materially worse – which isn't our base case &nda...

What does the recent fall in the Japanese Yen versus the US dollar mean for global equities investors? Pendal’s Nudgem Richyal, co-manager of Pendal Global Select Fund, explains in this fast podcast. An excerpt: “We take currency seriously in our beta view of the market and we think you cannot afford to be oblivious to it," says Pendal’s Nudgem Richyal.. The depreciation of the Y...