What will prompt central banks to stop hiking interest rates altogether? Look to wages for the answer, says Pendal’s head of income strategies AMY XIE PATRICK

Excerpt:

“The US Fed is looking for inflation not only peaking but coming down very convincingly to its 2% target,” says our head of income strategies, Amy Xi Patrick in her latest fast podcast.

“Wage growth in Australia is only at around about 2.5% to 3%.

“The RBA is comfortable for it to go up to 3.5%, maybe even temporarily to 4%.”

“Wage growth in the US however, is hovering at about 5.5% to 6% percent, which is clearly not consistent with the 2% inflation rate. “

This means inflation will be stickier than the market expects.

Central banks may slow down hikes, but they will be hiking for longer next year than the market currently expects, says Amy.

Higher-quality fixed income assets will help offer some buffer for future volatility, says Amy.

Listen to Amy’s fast podcast to find out how.

--//--


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

Pendal is an independent, global asset manager. Find out more at pendalgroup.com

What will prompt central banks to stop hiking interest rates altogether? Look to wages for the answer, says Pendal’s head of income strategies AMY XIE PATRICK
Excerpt:
“The US Fed is looking for inflation not only peaking but coming down very convincingly to its 2% target,” says our head of income strategies, Amy Xi Patrick in her latest fast podcast.
“Wage growth in Australia is only at around about 2.5% to 3%.
“The RBA is comfortable for it to go up to 3.5%, maybe even temporarily to 4%.”
“Wage growth in the US however, is hovering at about 5.5% to 6% percent, which is clearly not consistent with the 2% inflation rate. “
This means inflation will be stickier than the market expects.
Central banks may slow down hikes, but they will be hiking for longer next year than the market currently expects, says Amy.
Higher-quality fixed income assets will help offer some buffer for future volatility, says Amy.
Listen to Amy’s fast podcast to find out how.
--//--
 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 an independent, global asset manager. <a href="https://www.pendalgroup.com/">Find out more at pendalgroup.com</a>

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

The signals that will bring rate hikes to an end

Investors have been getting used to good news on inflation.

But does the latest US data suggest we’re getting ahead of ourselves?

In this new fast podcast Pendal’s head of bond strategies TIM HEXT reviews the evidence and explains why he still thinks there's juice left in bonds.

--//--

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

Investors have been getting used to good news on inflation.
But does the latest US data suggest we’re getting ahead of ourselves?
In this new fast podcast Pendal’s head of bond strategies TIM HEXT reviews the evidence and explains why he still thinks there's juice left in bonds.
--//-- 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’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 <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: What the latest signals on inflation really mean

Reckon you’ve got 2024 figure out?

Stay on your toes, because markets could go in any direction this year, says Pendal’s head of income strategies AMY XIE PATRICK in our latest podcast.

In this edition Amy explains the risks that investors may not be considering and how she is preparing her income portfolios.

--//--

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

Reckon you’ve got 2024 figure out?
Stay on your toes, because markets could go in any direction this year, says Pendal’s head of income strategies AMY XIE PATRICK in our latest podcast.
In this edition Amy explains the risks that investors may not be considering and how she is preparing her income portfolios.
--//-- 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’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 <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>

Amy Xie Patrick: What to worry about in a turning-point year

Have investors missed the boat on bonds after they touched 5% in October?

No, says Pendal’s head of bond strategies Tim Hext. In this latest Pendal fast podcast he explains why.

"When I look across the spectrum of what you can buy in bonds, government bonds are around 4.5%, state government bonds 5.25% and bank debt around 6%.

"On term deposits, my question to investors would be: Okay, let's assume term deposits are at 5% and you're locking yourself into those with no liquidity.

"Where do you think on average they're going to be over the next five or 10 years?"

"I think most people would assume they're going to be a little bit lower, not higher; and that cash rates will come down rather than go up a lot more.

"And yet, right now you can lock in, for five or 10 years, rates above 5% in bonds.

"The other advantage of bonds is that they're liquid.

"You can sell them anytime. You're not locked up like you are in a term deposit.

"That's particularly important, that if you saw a sudden sharp sell-off in equities and you're wanting to buy them — but your money's locked up in term deposits." 

--//--

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

Have investors missed the boat on bonds after they touched 5% in October?
No, says Pendal’s head of bond strategies Tim Hext. In this latest Pendal fast podcast he explains why.
"When I look across the spectrum of what you can buy in bonds, government bonds are around 4.5%, state government bonds 5.25% and bank debt around 6%.
"On term deposits, my question to investors would be: Okay, let's assume term deposits are at 5% and you're locking yourself into those with no liquidity.
"Where do you think on average they're going to be over the next five or 10 years?"
"I think most people would assume they're going to be a little bit lower, not higher; and that cash rates will come down rather than go up a lot more.
"And yet, right now you can lock in, for five or 10 years, rates above 5% in bonds.
"The other advantage of bonds is that they're liquid.
"You can sell them anytime. You're not locked up like you are in a term deposit.
"That's particularly important, that if you saw a sudden sharp sell-off in equities and you're wanting to buy them — but your money's locked up in term deposits." 
--//-- 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’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 <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>

The signals that will bring rate hikes to an end

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The Point: Professional investing in Australia with Perpetual

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