Market highs


By Joyce Moullakis, The Australian


Investors are digesting the local bourse this week hitting a new high and market stalwarts including Wilson Asset Management’s Geoff Wilson warning of an end to the record bull market.

Platform provider Powerwrap reckons investors are now more actively looking at their investment options as official interest rates hover at record lows — and may be cut further — and the search for other sources of yield continues.

Powerwrap boss Will Davidson has strong views on a growing allocation by wealthy investors to alternative asset classes.

Investors that house funds on Powerwrap’s platform have an allocation of about 14 per cent to alternative asset classes including infrastructure, hedge funds, private equity and mezzanine debt.

Davidson expects that will continue to grow and top 20 per cent.

Powerwrap — which has $8.75bn in funds under administration — this week entered a platform agreement with Melbourne-based Wattle Partners Private Wealth.

Mr Davidson also highlights findings of the 2019 Powerwrap and Investment Trends High Net Worth Investor Report, which late last year found that wealthy investor expectations for capital growth in ASX companies were negative for just the second time on record.

The report found the number of high net worth investors in Australia rose for a third straight year to 490,000, with that group collectively controlling just over $2 trillion in investable assets.

That’s a huge number given Australia’s total pool of superannuation assets amounted to $2.9 trillion as at September 30.

Next up though investors will closely watch the February profit season for clues on company growth prospects.