©2016 Morningstar, Inc. All rights reserved.
Asset Allocation - Finding Value in Volatile Markets
Brad Bugg, Head of Multi-Asset Income, Morningstar Investment Management
Simon Stevenson, Head of Strategy, Multi-Asset, Schroder Investment Management Australia
Michael Karagianis, Head of Private Investment Consulting (NAB), MLC Investment Management
Moderator: Grant Kennaway, Director, Global Manager Research Practice Morningstar
The asset class that represents the best opportunity for my clients currently is:
1. Cash/term deposits
2. Australian and/or global fixed interest
3. REITs and/or Infrastructure
4. Australian Equities
5. Global Equities
6. Alternatives
Live Poll
The asset class that represents the best opportunity for my clients currently is:
Live Poll Responses
The asset class that represents the best opportunity for my clients currently is:
Asset Allocation - Finding Value in Volatile Markets
Source: 2015 Morningstar Investment Conference
2015 Live Polling Result
One Year Asset Class returns to 30 April 2016:
1. REITs and/or Infrastructure 15.6%
2. Australian and/or global fixed interest 5.2%
3. Cash/term deposits 2.2%
4. Global Equities -0.8%
5. Alternatives -2.9%
6. Australian Equities -4.9%
How did last year’s predictions fare?
Within equities, in the last 12 months for my clients I have preferred:
1. Australian equities
2. Global equities
3. Higher yielding stocks
4. Other, like emerging markets or smallcaps
Live Poll
Within equities, in the last 12 months for my clients I have preferred:
Live Poll Responses
What’s your view on the Australian dollar?
1. Undervalued - it’s going back up from here
2. Fair value – it seems about right at current levels
3. Overvalued – it’s just paused, and will fall further
Live Poll
What’s your view on the Australian dollar?
Live Poll Responses
Asset Allocation - Finding Value in Volatile Markets
Source: Morningstar Direct
Q1 2016 returns did not reflect the very volatile start to 2016
1.77
-0.10.1
2.41
-1
1
3
5
7
9
11
Apr-96 Aug-98 Dec-00 Apr-03 Aug-05 Dec-07 Apr-10 Aug-12 Dec-14
US 10yr Japan 10yr Euro 10yr Aust 10yr
Key developed market interest moves over the last 20 years
Asset Allocation - Finding Value in Volatile Markets
Source: Factset
Most government bonds have performed well
The asset class that represents the best opportunity for my clients currently is:
1. Cash/term deposits
2. Australian and/or global fixed interest
3. REITs and/or Infrastructure
4. Australian Equities
5. Global Equities
6. Alternatives
Live Poll
The asset class that represents the best opportunity for my clients currently is:
Live Poll Responses
Important Information
14
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