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
Funds under management at Pinnacle Investment Management are approaching $180 billion, helped by a substantial jump in FUM from its overseas affiliates.
Warakirri Asset Management has partnered with US-based investment manager ClariVest to give Australian retail and wholesale investors access to the firm’s global small companies strategy.
Global X has come out fighting in the race to the bottom for ETF fees with an Australian equity ETF offering fees of just 0.04 per cent per annum, less than half those of the $20 billion Vanguard Australian Shares Index ETF.
Betashares has expanded its equity range, launching its latest Australian equity ETF and reducing the management fee on its existing global dividend ETF.
