Investors should think about long-term strategies in 2015 whilst also ensuring they look to defensive assets to protect themselves against market volatility, says Prescott Securities.
Prescott Securities has released its annual Ten Best Investment Ideas report which highlights key trends investors should be mindful for in 2015, including looking for quality companies whilst also thinking about defensive strategies.
“This year is all about change and developing long-term outlooks that provide the best return for the future,” Prescott Securities senior economist Alan Hutchinson said.
“Good portfolio management should include a constant review and understanding of your investments so the objectives you set out to achieve are met and comply with your attitudes to risk.
“A quality company is able to increase shareholder value consistently year after year. Looking at a company’s prospects will determine if the value will continue to rise over time,” he said.
Mr Hutchinson also pointed out that investors should consider fixed interest and enhanced yield investments as defensive strategies for their portfolios.
“Fixed interest and enhanced yield investments are defensive assets that can protect investors during market volatility and are crucial to long-term financial health.
“Investors need an understanding of the risk if there are changes to interest rates, either in Australia or overseas,” Mr Hutchinson said.
Also within the firm's report, Prescott Securities said geopolitical risks will also continue to influence markets in 2015 and investors should take this into consideration when allocating assets.
“Planning for tough times can help position your finances to benefit and be structurally resilient.
“This includes aiming for appropriate asset allocation, investing conservatively and having cash available for such events,” he added.
Investment organisations are not learning from their past experience when it comes to improving investment committee practices and governanc...
Half of Australian investment management professionals believe the coronavirus pandemic will trigger unethical behaviour in the industry, ac...