6 October 2021

What are the major factors driving global equities investments right now? And which plays should investors be considering in this asset class? Here's a quick snapshot from Pendal's head of global equities, Ashley Pittard.

6 October 2021
What are the major factors driving global equities investments right now? And which plays should investors be considering in this asset class? Here's a quick snapshot from Pendal's head of global equities, Ashley Pittard.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

The Point: Professional investing in Australia with Perpetual

Pendal's Ashley Pittard: What's driving global equities right now

With rate cuts looking like they are coming to the end of the cycle, Pendal's head of government bond strategies Tim Hext provides his insights on the outlook for 2026.

"It is an unclear picture, but definitely the global rate cutting cycle - which was a feature of late 2024 and most of this year - is now over," explains Tim. 

He says rate cuts in Australia are highly unlikely at least for the next six to nine months based on the latest inflation data.

However, Tim is optimistic that inflation will not hit a level that is unsettling for the bond market.

"If you think back to last decade, we had inflation consistently slightly undershooting to 2% at the bottom of the RBA band, and we're going to see inflation consistently shooting above 3% for the first half of next year, but not at a level which will make things unsettled," he says. 

How does this rate uncertainty shape portfolio construction? Tim explains in this podcast.

--//--

Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

--//--

This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It’s been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.

The information in this podcast may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this podcast is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

With rate cuts looking like they are coming to the end of the cycle, Pendal's head of government bond strategies Tim Hext provides his insights on the outlook for 2026.
"It is an unclear picture, but definitely the global rate cutting cycle - which was a feature of late 2024 and most of this year - is now over," explains Tim.&nbsp;
He says rate cuts in Australia are highly unlikely at least for the next six to nine months based on the latest inflation data.
However, Tim is optimistic that inflation will not hit a level that is unsettling for the bond market.
"If you think back to last decade, we had inflation consistently slightly undershooting to 2% at the bottom of the RBA band, and we're going to see inflation consistently shooting above 3% for the first half of next year, but not at a level which will make things unsettled," he says.&nbsp;
How does this rate uncertainty shape portfolio construction? Tim explains in this podcast.
--//-- Find out more about Pendal's fixed income strategies at <a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds/">pend.al/fixedinterest</a>
Pendal is a global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>
--//--
This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It&rsquo;s been prepared without taking into account any recipient&rsquo;s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients&rsquo; individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in this podcast&nbsp;may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in&nbsp;this podcast&nbsp;is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.
Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.
For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website&nbsp;<a href="https://aus01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.pendalgroup.com%2F&amp;data=05%7C01%7CDavid.Higgins%40pendalgroup.com%7Cfdc46f1ca2c249af188908db566608e3%7C82bfe2773f1645a49ff4f40692b556b9%7C0%7C0%7C638198768471544474%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bo%2FK353stl%2BbgZg2TrxbQ2AY6%2FIRTSbtirIKerFH8Pc%3D&amp;reserved=0" data-auth="NotApplicable" data-safelink="true" data-linkindex="7">www.pendalgroup.com</a>

Tim Hext: Why 2026 could favour bond investors

What’s driving the rotation in equities around the globe at the moment?

Pendal portfolio manager Elise McKay points to the evolving flow of money. “The rise of passive, the rise of systematic trading have contributed to an increase of volatility in our market," Elise explains in our latest podcast.

“During the extreme market moves we saw last week, ETFs were accounting for 38% of market volumes compared to a historical average of around 28%.” 

With the market crowding into long-duration growth stocks, any sign of uncertainty in the economy or questions over the easing cycle help drive heavy rotation into cyclicals and financials.

How should investors approach this volatile period? Elise explains in this podcast.

--//--

Find out more about Pendal's Australian equities strategies here.

--//--

*Pendal has a position in the stocks mentioned in this podcast.

This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It’s been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.

The information in this podcast may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this podcast is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

What&rsquo;s driving the rotation in equities around the globe at the moment?
Pendal portfolio manager Elise McKay points to the evolving flow of money. &ldquo;The rise of passive, the rise of systematic trading have contributed to an increase of volatility in our market," Elise explains in our latest podcast.
&ldquo;During the extreme market moves we saw last week, ETFs were accounting for 38% of market volumes compared to a historical average of around 28%.&rdquo;&nbsp;
With the market crowding into long-duration growth stocks, any sign of uncertainty in the economy or questions over the easing cycle help drive heavy rotation into cyclicals and financials.
How should investors approach this volatile period? Elise explains in this podcast.
--//-- Find out more about <a href="https://pendalgroup.com/about/investment-capabilities/australian-equities">Pendal's Australian equities strategies here.</a>
--//--
*Pendal has a position in the stocks mentioned in this podcast.
This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It&rsquo;s been prepared without taking into account any recipient&rsquo;s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients&rsquo; individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in this podcast&nbsp;may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in&nbsp;this podcast&nbsp;is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.
Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.
For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website&nbsp;<a href="https://aus01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.pendalgroup.com%2F&amp;data=05%7C01%7CDavid.Higgins%40pendalgroup.com%7Cfdc46f1ca2c249af188908db566608e3%7C82bfe2773f1645a49ff4f40692b556b9%7C0%7C0%7C638198768471544474%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bo%2FK353stl%2BbgZg2TrxbQ2AY6%2FIRTSbtirIKerFH8Pc%3D&amp;reserved=0" data-auth="NotApplicable" data-safelink="true" data-linkindex="7">www.pendalgroup.com</a>

Elise McKay: What’s driving rotation in equities right now

As tariff news has died down, markets have come flying back in the last few months.

“But we do have a world now where the US tariff rate on average is around 18%,” observes Pendal’s head of government bonds Tim Hext.

“That is not a world we have seen for almost 100 years, not since World War II."

It’s an environment made for active investors, says Tim in this new short podcast.

It can take years to understand the full impact of trade tariffs, yet markets tend to be very short-term focused, he says.

"That does present a lot of opportunities for an active manager," says Tim.

"It gives does give us plenty of good opportunities to add value in active portfolios, and that's what we're doing at the moment."

--//--

Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

--//--

This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It’s been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients’ individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.

The information in this podcast may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.

Any projections contained in this podcast is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.

Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.

For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com

As tariff news has died down, markets have come flying back in the last few months.
&ldquo;But we do have a world now where the US tariff rate on average is around 18%,&rdquo; observes Pendal&rsquo;s head of government bonds Tim Hext.
&ldquo;That is not a world we have seen for almost 100 years, not since World War II."
It&rsquo;s an environment made for active investors, says Tim in this new short podcast.
It can take years to understand the full impact of trade tariffs, yet markets tend to be very short-term focused, he says.
"That does present a lot of opportunities for an active manager," says Tim.
"It gives does give us plenty of good opportunities to add value in active portfolios, and that's what we're doing at the moment."
--//-- Find out more about Pendal's fixed income strategies at <a href="https://www.pendalgroup.com/products/asset-class/australian-fixed-interest-funds/">pend.al/fixedinterest</a>
Pendal is a global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>
--//--
This podcast is for general information purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It&rsquo;s been prepared without taking into account any recipient&rsquo;s personal objectives, financial situation or needs. Because of this, recipients should, before acting on the information, consider its appropriateness having regard to their or their clients&rsquo; individual objectives, financial situation and needs. The information is not to be regarded as a securities recommendation.
The information in this podcast&nbsp;may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information in this presentation is complete and correct, to the maximum extent permitted by law neither Pendal nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information.
Any projections contained in&nbsp;this podcast&nbsp;is predictive and should not be relied upon when making an investment decision or recommendation. While we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections.
Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance.
For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website&nbsp;<a href="https://aus01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.pendalgroup.com%2F&amp;data=05%7C01%7CDavid.Higgins%40pendalgroup.com%7Cfdc46f1ca2c249af188908db566608e3%7C82bfe2773f1645a49ff4f40692b556b9%7C0%7C0%7C638198768471544474%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&amp;sdata=bo%2FK353stl%2BbgZg2TrxbQ2AY6%2FIRTSbtirIKerFH8Pc%3D&amp;reserved=0" data-auth="NotApplicable" data-safelink="true" data-linkindex="7">www.pendalgroup.com</a>

Pendal's Ashley Pittard: What's driving global equities right now

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