International equities look promising: BlackRock
Investors looking for contrarian opportunities should be watching the international equities market in the year ahead, according to BlackRock international equities specialist James Holt.
Speaking at BlackRock’s Australian retail roadshow in Sydney, Holt described global companies as looking “cheap and unloved”, stating they now represent far better value than they did 10 years ago.
“Historically [global equities] have been expensive relative to Australian equities, but this no longer applies, while the Australian dollar’s strength gives investors the best offshore buying power they have had for 28 years,” he said.
He said that companies specialising in technology, health and pharmaceuticals, as well as consumer sectors, dominated the world’s markets — although they were not so prevalent in Australia.
“The global brands are likely to benefit as the wealthier middle class consumer emerges in China and many are awash with cash for growth or to reward shareholders with higher dividends and share buybacks,” Holt said.
Other predictions for 2011 from the day included that equities would outperform cash and bonds (pointing to Taiwanese equities in particular), while resources would continue to outperform and oil prices would continue to rally.
Recommended for you
Janus Henderson is actively seeking to partner with private wealth firms in Australia as it looks to expand its number of strategic partnerships, as well as focus on retirement income product development.
Global investment manager First Sentier Investors has launched an umbrella brand to provide greater clarity around its shift to a multi-affiliate asset manager encompassing six investment teams.
Janus Henderson has seen intermediary outflows in the second quarter of US$1.2 billion, although its deal with insurer Guardian means overall net flows are US$46.7 billion.
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
