Insights

The following was produced and published as part of Livewire’s The Pitch on 5 June 2024.

These three investment ideas are designed to anchor your portfolio, generate outsized yield, and profit from deep discounts.

Prior to 2022, fixed income was an asset class that was associated with income and defensive-oriented characteristics, but did not offer much yield. Ultra-low interest rates, a low (but not negative growth) economic environment, and relatively few geopolitical flare-ups created the perfect environment to take risks. Until the world changes, why should you change your investment philosophy too?

But that environment is now well in the rear-view mirror. Now, income opportunities are as interesting as growth opportunities, rates are higher, and the geopolitical black swan is now more prevalent than ever. In addition, the opportunity in private markets (e.g. direct lending) is now as interesting as the opportunity in public markets (e.g. corporate bonds).

And as Teiki Benveniste, Head of Australia, Ares Asia Wealth Management Solutions points out in the latest episode of The Pitch, investing in both private and public markets is not just complementary – it is both valuable and sensible.