Defensive investment products in demand: Investment Trends
A cautious approach to an improving yet still volatile market is causing a boom in beta-oriented and defensive investment products, according to the Investment Trends Investor Product Needs report.
Growth in unlisted index funds and put and call warrants have shot up by 58 per cent and 64 per cent respectively from 2011 to November 2012.
ETFs and hybrid securities have also seen growth of 25 per cent and 21 per cent respectively, according to the report.
Self-managed super fund investors hold approximately two thirds of the hybrid securities market, the report said.
Cash holdings are also continuing to build up, with excess cash increasing, the report said.
Investors’ cautious behaviour is driving them to focus more on income and less on capital growth. This continued change in focus has helped shape the demand for different products, the report said.
Investors remained fearful with muted return expectations over 2012, with many remaining on the sidelines in cash, Investment Trends principal Mark Johnston said.
However, investor return expectations have spiked from September last year to February, hitting a 20-month high of 8 per cent, Johnston noted.
Recommended for you
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
