Trading numbers reveal bearish outlook
Investors are increasingly positioning their portfolios for a potential pullback in the share market, despite Australian equities trading near six year highs, according to Betashares.
The data reveals the average daily value traded of the firm's inverse Australian equities fund, had increased by 40 per cent last month. The fund is traded on the ASX and is designed to obtain returns that are negatively correlated to the Australian share market.
The increased trading in the shorted fund may indicate cautious sentiment amongst segments in the Australian investor community, BetaShares managing director Alex Vynokur said.
He said this seems to reveal an undercurrent of nervousness in the domestic equities market following the federal budget announcement and its impact on consumer confidence.
Additionally mixed economic signals from international markets are contributing to the bearish outlook.
"We have had a continual stream of mixed data from key economies such as the United States, Europe and China which is causing investors to consider protecting their portfolios from downside risk," Vynokur said.
Recommended for you
The “experiment” away from vertical integration has been a mistake, according to Clime’s Michael Baragwanath, and Clime is positioning to benefit via advice and fund manager acquisitions.
JP Morgan Asset Management has identified Australia as an “emerging growth market” as it seeks to double its assets under management in the Asia-Pacific region in the next five years.
Australian Ethical funds under management were $14.3 billion at the end of September, with its investment division seeing inflows return after outflows in the previous quarter.
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
