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Latest insights
  • 26 Aug 2016
    Life & general insurers face higher asset risk charges on a sovereign downgrade
    S&P's outlook negative on Australia's sovereign rating is of potential concern for insurance companies that are required to follow APRA's Life and General Insurance Capital (LAGIC) Standards. Any downgrade of the Australian major banks and state governments would have potentially significant consequences for Life and General Insurers under existing legislation.
  • 22 Aug 2016
    Finding sustainable income in an investment world turned upside down
    In a world where income is increasingly scarce, investors—particularly retirees—are faced with the challenge of how to earn a sustainable income without placing capital at risk. Traditional ‘high yield’ assets and equity sectors are expensive, both historically and compared with the relevant overall market. In our view, the risk of reversal is high. As a result, we believe that careful selection of stocks is required, based on in-depth research and focused on sustainability of dividends, rather than following the herd into crowded trades.
  • 9 Aug 2016
    3% is the new 5% for the Australian cash rate
    When the interest rate cycle turns and the RBA starts raising rates, it may be tempting to expect a return to ‘normal’ interest rates. However, we expect that 3% is likely to be the ceiling level for the Australian cash rate as opposed to the ‘normal’ 5% level we saw through the 1990s and 2000s as what was once deemed expansionary policy becomes contractionary.
Latest insights
  • 26 Aug 2016
    Life & general insurers face higher asset risk charges on a sovereign downgrade
    S&P's outlook negative on Australia's sovereign rating is of potential concern for insurance companies that are required to follow APRA's Life and General Insurance Capital (LAGIC) Standards. Any downgrade of the Australian major banks and state governments would have potentially significant consequences for Life and General Insurers under existing legislation.
  • 22 Aug 2016
    Finding sustainable income in an investment world turned upside down
    In a world where income is increasingly scarce, investors—particularly retirees—are faced with the challenge of how to earn a sustainable income without placing capital at risk. Traditional ‘high yield’ assets and equity sectors are expensive, both historically and compared with the relevant overall market. In our view, the risk of reversal is high. As a result, we believe that careful selection of stocks is required, based on in-depth research and focused on sustainability of dividends, rather than following the herd into crowded trades.
  • 9 Aug 2016
    3% is the new 5% for the Australian cash rate
    When the interest rate cycle turns and the RBA starts raising rates, it may be tempting to expect a return to ‘normal’ interest rates. However, we expect that 3% is likely to be the ceiling level for the Australian cash rate as opposed to the ‘normal’ 5% level we saw through the 1990s and 2000s as what was once deemed expansionary policy becomes contractionary.
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