Buoyant outlook for Aussie equities
The Australian equities market appears ripe for growth, despite the local economy still moving at sub-par rates, a fund manager believes.
With the global economy steadily improving and the dollar in decline, the outlook is optimistic for earnings at least in the first half of the year, Platypus Asset Management chief investment officer Don Williams told a briefing yesterday.
Despite the market heading down 2 per cent on Tuesday, Williams said the “fundamentals” had not changed.
“Global economic recovery is gaining momentum, maybe not as much as people would like, but we think the risk growth is at least evenly balanced and I would argue more towards the upside for this calendar year,” he said.
“Domestically, we still have the lag impact of low rates assisting the economy. The way we would like to characterise the Australian economy now is flat, it’s growing below its potential.”
But, he added, “as a generalisation, we believe that the lower currency will make Australia more competitive and is good for earnings as well”.
Williams said while the February reporting season could be “tough” due to last year’s economic conditions, consumer optimism, coupled with the improving property sector and IPO market, would most likely lead to positive results in the next few months.
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
