With the global economic recovery expected to broaden and policy settings still very supportive we detail our third quarter strategic asset allocation.

We think Sydney Airport’s (SYD) $8.25 cash takeover proposal, from an IFM Investors-led consortium of infrastructure specialists, has room to move higher. The IFM bid benefits from its industry member super fund members having deep pockets, rich asset level experience, and arguably one of the lowest costs of capital in the market.

Wilsons has added further depth to its Private Wealth team with the exciting addition of Ted Richards. He will be spearheading the expansion of our client service offering with his expertise in technology, marketing and business development.

In Australia, property prices have surged over the last year, increasing by 13.5% in the year to May. This situation is not isolated to Australia. House prices across most developed nations have been rising.

Wilsons is pleased to announce the appointment of Sir Ralph Norris and Jeremy Williamson as non-executive directors to the company’s board, effective immediately.

We remain constructive on the A$’s 6 to 12- month prospects, with the prospect of further global re-opening and an above-trend growth environment, typically bearish for the US$ and bullish for commodity-driven/risk on currencies such as the A$. 

The insurance sector has been hit hard since early 2020, underperforming the market by almost 25%. A combination of stock and industry concerns, against a difficult claims environment, has weighed on equity prices. Two-thirds of major players in 2020 were forced to raise common equity capital in response.

After a sharp sell-off in the first quarter bond yields have surprised the consensus by falling in Q2. The US bond market has led the decline, although the Australian bond market has seen a similar pattern.