Window of opportunity closes on global equities
|
|
The best opportunities to reap returns from undervalued global equities have passed, according to a new analysis released by Mercer.
The head of Mercer’s Dynamic Asset Allocation team in Australia, David Stuart, said the company had brought its global equity rating back to ‘fair value’ from ‘undervalued’ as the growth in global equity markets slowed over the past quarter.
“We remain optimistic that corporate earnings will continue to recover, but the markets have now built in a reasonable amount of expectation around good news in future earnings — and this has squeezed out the potential for above-average returns,” he said.
Stuart said that Mercer also believed equity markets were in for a bumpy ride with many risks still facing global economies — meaning that the case to be overweight in global equities was no longer as strong.
AUTHOR
Mike Taylor
Recommended for you
Family office Lederer Group has progressed its takeover bid for the Elanor Commercial Property Fund, lodging a bidder’s statement with ASIC as it says the fund has been “unable to agree” on negotiation terms.
Magellan Financial Group is keen to enact further strategic expansions with income from strategic partnerships tripling to $31.1 million from the addition of Vinva during FY25.
Outflows have doubled in the property and infrastructure space to $1.3 billion with advisers instead favouring private markets as Morningstar data finds active property funds are struggling to outperform.
Fund manager HMC Capital is seeking to expand fundraising for its private equity vehicle into wholesale platforms now that it has achieved a three-year track record, while scrapping plans for a second fund.
