Wayne Crispe of ANZ Private Bank looks at emerging investment opportunities arising from the current environment, in particular for income-driven and retirement-focused products.
Date: Jan 2011
That should lead investors to look at opportunities which potentially have higher returns going forward, he explained.
This means the outlook for Asian equities and certain stock markets should look quite attractive over the medium to long term.
There is also an opportunity for private banking clients to look at some private equity and infrastructure opportunities, added Crispe.
Income-driven and longer term products
According to Crispe, the ageing population in a lot of Asian economies will drive a demand for more income.
There will also be demand among private clients for more retirement products, he added – a trend expected to increase over the next five to 10 years.
This will focus on annuity-type products, said Crispe, explaining that this means those which return a regular pension-type payment.
There is also likely to be a demand for compulsory saving-type products to fund education for children, he added.
When looking at life cycles, he explained, individuals want to build their pool of wealth over the next 10 to 15 years with a defined objective, for example the education of children or retirement. Yet there hasn’t been much of this until now.
In line with this will come investment strategies and objectives for clients to implement to get the pool of capital to generate the returns they want.
In general, said Crispe, investors need to take a medium- to long-term view of such investments, given that nobody can predict the next downturn or crisis.
At the same time, however, markets recover more and more quickly from such situations – so along with volatility comes opportunities for people who have managed their finances appropriately to buy in periods of weakness.