Investing

The surge in passive investment options in recent years, along with a record of underperformance by active managers, has pushed the ongoing active-versus-passive debate to the fore. Proponents of both styles agree, though, that how each approach performs in volatility will be the key question in 2023.

Although more Australian companies are paying dividends in 2023, many have reduced payouts, with the year-to-date total slightly behind 2022’s figures, according to CommSec research. The big miners are leading the cuts, while energy producers are lifting dividends to reflect record high gas prices.

Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.

As the RBA’s rate hiking campaign appears to approach its peak, investors looking to lock in term deposits should shop around to find the best rates, analysts say, warning that the complacent risk missing out.

US technology stocks have suffered steep losses over the last year as interest rates have marched higher. But with the Fed now signalling reductions in future rate hikes, value could emerge in tech stocks with strong fundamentals.

Disruptor wealth platforms like HUB24, Netwealth and Praemium have been taking market share from the mostly bank-aligned platforms for years. While waning investor sentiment has hurt inflows recently, analysts say these platforms are still well positioned in the shift away from incumbents.

The market view is still too optimistic, according to the BlackRock Investment Institute, and investors aren’t truly considering the risk of a recession.

The traditional 60/40 portfolio mix of shares and bonds may be due a shakeup in 2023, as market participants look to add fixed-income exposure to help offset a potentially weak year for equities.

After equity markets recalibrated during a volatile 2022, the market is anticipating a tale of two halves in 2023. Investors should look for opportunities in established and high-quality global stocks, with a focus on corporate earnings.

Increasing government expenditure on social infrastructure is driving huge levels of investment into the sector. There are now several options for retail and wholesale investors to gain exposure to this asset class, which was previously open only to institutional investors.

While the greater housing market is already reflecting the pain of constricting economic conditions, a new property fund partnership between Trilogy Funds and Michael Birch’s Murray Darling Capital shows the potential of ‘rent roll’ portfolios of rental property management agreements to provide exposure to the supersized Australian property sector even as the outlook darkens.

7investing lead adviser Anirban Mahanti says companies have been thwarting cyber threats for a long time. However, as data moves to the cloud, systems have failed to keep up.