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Quarterly Investment Update from the AAN Asset Management Investment Committee – Q4 2023

Contrasting predictions about recession or expansion, inflation or deflation, and the direction of interest rates continues.  With this in mind, markets are likely to remain unpredictable. Liquidity is very important in this environment, providing easy access to funds and the ability to seize new opportunities, should they arise.

Central banks remain firm against inflation. However, with inflation above central bank comfort zones, this is expected to keep rates higher-for-longer and dampen the current market expectations for an early start to a developed market easing.

The market shows glimmers of optimism and equity markets maintain an optimistic stance, hoping for rate cuts to prevent an economic downturn. Notably, earnings growth and balance sheet strength will remain a key focus and geopolitical risks continue to weigh heavily on the outlook for stocks.

Looking ahead, bottom-up research and consistent engagement will be crucial in identifying the best opportunities.


Some very good news for our AAN Asset Management model users

In our May update we discussed some changes to underlying models. While making those changes we had to opportunity to discuss rate cards with new managers and our incumbents, especially given the growth in the holdings in our AAN Core And AAN Growth options.

Key considerations in the creation of the models have always been best of breed holdings and cost reductions through scale.  We use our proprietary ‘Four Pillars’ philosophy when structuring portfolios and then negotiate favourable terms with the successful solutions.

As a product of building scale we can now announce model fee reductions in three of our models including our two largest.



After a challenging year in 2022, diversified portfolios experienced favourable returns. Despite ongoing uncertainty and further tightening from central banks, risk asset markets across the world saw substantial positive returns during the first quarter of 2023.

The major catalyst for volatility over the quarter stemmed from the banking sector, with the collapse of Silicon Valley Bank and Signature Bank in the US. Credit Suisse in Europe also collapsed, though this followed years of scandals, losses, and changes to the management team.

The material change to select portfolios this quarter was the addition of the Perpetual Focus Australian Share Fund to the Core, Growth, and Australian models. Other changes were limited to adjustments to benchmark allocations.


Shifting to a managed accounts business mindset

Praemium’s Chief Distribution Officer Martin Morris talks to Paul Forbes, CEO of the Australian Advice Network and RFS Advice about the journey to becoming a Managed Accounts focused advice firm. Martin and Paul talk about building a client value proposition, introducing clients to managed accounts, selecting models, business efficiencies and choosing the right technology partner. It’s a fascinating insight into a successful advice practice.

Praemium Podcasts – Shifting to a managed accounts business mindset

Investment update from the AAN Investment Committee

As many of you will note, the AAN Investment Committee have long maintained the policy of rebalancing models on a quarterly basis, and this was actioned last Friday. This process involves trimming positions that have performed well, topping up those that haven’t and as part of this rebalance a number of changes were made to the Core, Growth and Australian models, and we wanted to share those with you. 


Investor Letter

Dear Investor

2021 presented a year of ups and downs for most of us. The ups included a strong start for the Australian economy and markets, with Australia’s strong quarantine system buffering us from a new highly contagious Covid-19 variant labelled Delta.


A watched pot never boils

Slightly out of context but the quote points to watching something continually, can make it feel like it is never going to happen – in this case boil.
Investment markets can feel the same way.
The answer to the question, ‘is a correction coming?’ is ‘ALWAYS’.


Investor Letter

Over the last 40 years interest rates have largely been on a downward trajectory as governments separated central banks from political influence, and refocused them on broader objectives linked to employment, inflation, and currency stability.

Get In Touch

If you have any questions or you would like to speak with one of our Advisers, get in touch with us and we will get back to you as soon as possible.

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