Latest news with #portfolio
Yahoo
2 days ago
- Business
- Yahoo
Stocks Gain Pre-Bell as Trump Announces Trade Deal With China; Key Inflation Report on Deck
The benchmark US stock measures were tracking in the green before Friday's open after President Dona Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Argaam
3 days ago
- Business
- Argaam
Tadawul unveils streamlined stock split process to ensure prompt portfolio tweaks
The Saudi Exchange (Tadawul) announced today, June 26, changes to its stock split mechanism, thus ensuring that changes in share quantities and nominal values are reflected in investors' portfolios immediately. Accordingly, the adjusted shares are tradable as of the first trading session after the stock split decision is passed, according to a statement. This streamlined stock split process should support investors in making faster, more informed investment decisions, ensuring no misalignment in the stock price and share quantity during its implementation, the statement noted. Related benefits for investors most notably include: - Immediate reflection of the adjusted share quantity and price from the first trading session after the stock split decision is approved, being reflected in investors' portfolios immediately. - Adjusted stocks will be tradable from the first trading session as of the stock split decision's approval date. - More efficient portfolio tracking and management on the day of the stock split for investors. - Alignment with global best practices. This enhancement is operational in nature and does not impact the procedure of stock splits or its requirements for listed companies. Issuers intending to split their stocks can continue to do so without any change to existing mechanisms. It also noted that this enhancement will take effect as of July 1.
The Australian
4 days ago
- Business
- The Australian
Is it time to move on from ‘old gold' defensive strategies?
Special Report: For decades, the 60/40 portfolio was sacrosanct: equities for growth, bonds for ballast, and gold as a hedge. But in a structurally different world, the assumptions underpinning traditional defensive strategies demand rethinking. Words by Tom Cranfield, Executive Director, Risk & Execution, Zagga Recent market cycles have exposed the fragility of conventional defences. In an era of persistent volatility and rising correlation across traditional asset classes, now's the time to re-examine – and reframe – what constitutes a truly defensive allocation. One asset class rising to meet this moment is private credit. At Zagga, we see firsthand how this market is maturing, how demand is growing, and how investors are shifting their thinking. The defensive playbook is broken Traditionally, defensive investing meant a tilt toward fixed income – bonds and cash. For more cautious allocators, it also included real assets like gold. These assets were expected to provide protection when equities fell. But that assumption has been increasingly challenged in an environment where market correlations behave differently than they once did. So why do some still cling to 'old gold' strategies? Perhaps out of habit. Or inertia. But markets don't reward nostalgia. Let's be clear: this isn't about abandoning fundamentals but adapting them. Today's sophisticated investors aren't just diversifying for returns – they're building portfolios that can withstand, and prevail across, market shocks. In this contemporary context, the old 60/40 portfolio no longer provides a compass for uncertain times but rather, is quickly becoming a relic of the past. Private credit: a modern defensive asset Consider this: Australia's private credit market is now worth over $205 billion, with commercial real estate credit accounting for $85 billion and growing rapidly. The shift is structural, not cyclical. Banks are retreating from mid-market lending due to increasing capital and regulatory constraints. Private lenders – disciplined, agile, and secured by real property assets – are stepping in. Private credit offers a distinct risk-return profile. In real estate private credit, loans are commonly structured with floating interest rates, aligning returns with the cash rate. This alignment provides a natural hedge, unlike traditional fixed income securities like government bonds, which typically decline in value when interest rates increase. It also helps smooth returns over time, providing downside protection that equities can't offer. If defensive investing is about protecting capital, generating income, and reducing volatility, then the approach to achieving these goals must evolve to reflect today's market realities. Housing fundamentals provide strong tailwinds The strength of any credit investment lies in both the borrower and the underlying asset. That's why Australia's persistent housing undersupply and constrained development finance are creating a favourable environment for well-structured real estate private credit. The National Housing Finance and Investment Corporation (NHFIC) projects a shortfall of over 100,000 homes by 2027. Meanwhile, construction costs remain elevated, and banks are pulling back from development lending. This convergence of demand and funding shortfall creates a unique opportunity for investors to support high-quality projects while earning attractive returns. Zagga has long focused on the Eastern Seaboard – especially NSW and Victoria – where underlying demand for housing remains robust, driven by immigration, infrastructure investment, and strong economic fundamentals. The result? A compelling investment case. Private credit, especially in Australia's resilient property market, now offers investors an alternative to both fixed income and share markets – one that yields returns multiple percentage points above the official cash rate, with less volatility and lower correlation. The future of portfolio construction As global uncertainty endures and central banks walk a tightrope between tightening and easing interest rates, public markets remain volatile. The traditional 60/40 portfolio is no longer sufficient; the focus must shift from chasing growth to building resilience. Alternative, uncorrelated asset classes can enhance diversification, support capital preservation, and provide income across market cycles. Investors must not just prioritise growth, but incorporate alternative, uncorrelated asset classes, that provide consistency in returns, and income, across cycles. We have already seen a shift in institutional behaviour, with Australian super funds and global wealth managers now increasing allocations to private credit for precisely this reason. The goal isn't just to beat benchmarks – it's to preserve capital, generate consistent income, and build resilience against shocks. We expect to see sophisticated investors embrace more diversified portfolio. One that may be more 25/25/25/25 than 60/40. That is, 25 per cent spread equally across equities, fixed income, alternatives and private markets – to balance risk, enhance returns and build resilience in a structurally different market environment. In this formula, private credit delivers income that floats with inflation; diversification from public markets; and when well-executed, it sits atop high-quality real assets with clear exit strategies. Private credit isn't the answer to every question. But for investors looking to modernise their defensive allocations, it may be time to rethink some of those "old gold" ideas and embrace strategies fit for today's market realities. The views, information, or opinions expressed in this article are solely those of the author and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article. This article was developed in collaboration with Zagga, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Yahoo
4 days ago
- Business
- Yahoo
Prosus eyes five-fold growth of its $6.5 billion India portfolio
(Reuters) -Dutch technology investor Prosus has set a target to grow the value of its Indian portfolio five-fold from the current $6.5 billion through synergies and using AI to boost productivity, the company said in a presentation to investors on Wednesday. The region is home to some of the biggest ventures in its portfolio, including the food delivery platform Swiggy, and payment facilitator PayU India. The company did not provide a specific timeline for the growth target. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
5 days ago
- Business
- The Independent
You just retired (or are about to). Now what?
If there's a single group of people who are likely to be experiencing the most consternation over recent market events, it's those who have just retired or who are on the cusp of hanging it up. But as with most things in life, the key for new- and near-retirees making it through this period with their sanity intact is to focus on what they can control. Assess spending rate People who have just retired or are about to do so are vulnerable to sequence-of-returns risk, which means that a bad market shows up early in retirement. And this imperils your portfolio's ability to last throughout your retirement years. Retirees who are pulling cash flows from their portfolios can address that risk by adjusting spending down to ensure that more of their portfolios are in place to recover when the market eventually does. In our retirement income research, we found that tweaks like forgoing an inflation adjustment following a bear market help ensure that spending lasts over a 30-year period. If you haven't yet retired, assess your planned in-retirement spending and identify where you could make cutbacks if needed. Pull cash flows from safer assets Ideally, you can pull portfolio cash flows from safer assets and leave your stock positions undisturbed. That's the general logic behind the Bucket approach to portfolio construction. In good years for the stock market, harvest appreciated equity assets for income. In bad ones, don't touch stocks but instead source cash flows from high-quality bonds or cash. Using that logic, you may even want to reinvest income distributions back into securities that have recently lost value rather than spending them. Play the long game with Social Security If pulling too much from a portfolio during down markets is a bad idea, filing for Social Security might look compelling. But it could be a mistake to let what we hope will be a short-lived downturn steer you away from the lifetime benefits of delayed Social Security. Delayed filing can be particularly impactful if you're the higher earner in your family and you have a younger spouse who will receive that higher benefit for her lifetime. In our retirement income research, we found that the benefits of delaying filing until age 70 are greatest if you have other funds to draw from until then. And they're obviously more valuable for people with above-average life expectancies, in that they stand to receive that inflation-protected income for longer. If you need funds and have to choose between filing for Social Security and pulling from a depressed equity portfolio, consider filing for Social Security and then doing a ' withdrawal of benefits ' within a year of when you initially filed. Revisit inflation protection Inflation is a key risk for retiree portfolios, because the income you receive from your safe investments is going to buy you less as you age. Many retirees focus exclusively on nominal bonds and underrate the value of inflation-protected bonds, but most of the better target-date series stake about a fourth of the bond positions in short-term Treasury Inflation-Protected Securities for people who have just retired. Another strategy is to build a laddered portfolio of TIPS that will mature and supply you with living expenses throughout your retirement. Investigate tax-saving strategies Finally, one small silver lining in market volatility is the opportunity to save on taxes. The early-retirement years are an excellent time to convert traditional IRA balances to Roth. The reason is that without income from work and because you won't be subject to required minimum distributions until you're 73, your income and, in turn, the taxes that you'll owe on conversions will be lower. ____ This article was provided to The Associated Press by Morningstar. For more personal finance content, go to
