Nikko trims global exposures
Tensions in the Ukraine and other factors have prompted Tyndall Investment Management parent Nikko Asset Management to trim its long-running overweight stance on global equities.
The company said its Global Investment Committee (GIC) had been able to shoulder the various global risks since September 2011 and still maintain its overweight stance on global equities, but recent events had prompted a change.
“A major reason was the Ukraine tensions, but other factors also played a role in the GIC’s concern,” it said. “It has long maintained a cautious stance on China, and there are increasing signs of shadow banking defaults and declining residential property prices.
“On the other hand, certain segments of the economy will benefit strongly from the reforms even in the short term, and the GIC is by no means calling for a hard landing; rather, that economic growth will moderately disappoint consensus expectations.
“As for other factors, fairly elevated US equity valuations and the strong rise in US equity prices over the last year also contributed to the GIC’s concern, especially as earnings growth will likely be hampered by the recent weather calamities.”
Nikko said it was extremely rare that its GIC made ad-hoc decisions like and it was meant to be temporary until it met later this month in full session to make a final decision.
Recommended for you
Insignia Financial has returned to profit in FY25, after a $185 million loss in the previous year, while its advice division grew their revenue per adviser by 14 per cent.
With licensee switching on the rise, particularly for newer advisers, compliance expert Sean Graham has shared red flags to watch out for when making the jump between AFSLs.
Beyond their investment benefits, over a third of advisers say utilising managed accounts solutions has allowed them to take on more clients, according to Praemium.
Insignia Financial’s wrap platform has appointed Heidi Press, former HUB24 head of product management, to spearhead the design and delivery of the MLC Expand platform.
