Platypus, Altius wary of stocks, bonds; Australian Unity likes office property

Simon Bonouvrie, portfolio manager of Platypus Asset Management, an Bill Bovingdon, chief investment officer of Altius Asset Management, are wary of volatile stock and bond markets.

“Markets are reacting day to day off macroeconomic headlines,” says Bonouvrie, whose firm manages $1 billion in Australian stocks. “It’s prudent to run a defensive portfolio.”

Bonouvrie likes Commonwealth Bank of Australia Ltd., National Australia Bank Ltd., Rio Tinto Group, BHP Billiton Ltd., Newcrest Mining Ltd. and Regis Resources Ltd.

Bovingdon, whose $150-million fixed income fund will soon double, likes cash, 10-year Australian government bonds, semi-government bonds, corporate bonds and mortgages.

“The Australian bond curve is so far below cash that it’s hard to get excited by it,” he says.

Mark Pitt, general manager of property, mortgages and capital markets at Australian Unity, likes the office property market in Sydney and Melbourne.

“There is less volatility in commercial property values,” says Pitt, who helps manage $1.9 billion in direct property investments and $700 million in mortgages.

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Geopolitical risks rewire asset allocation ‘operating system’: GIC

Some investors are “missing the point” of geopolitical risks by equating them to the disruptions from conflicts and wars, according to GIC chief economist Prakash Kannan, but in reality, geopolitical risk is no longer episodic or peripheral. This means investors need to think harder about inflation and country composition in their portfolio.

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