2019-05-01 Money Australia

(Steven Felgate) #1


Healthcare a safe haven


iven steady demand for
healthcare, the sector is more
immune to an economic downturn
than others. People have no choice
but to spend on healthcare prod-
ucts, such as medicines, hearing aids and hospitals,
even during an economic downturn. But some
companies are safer investments than others, with
more established ones generally less risky than
small biotechs just establishing operations. Many
larger companies boast strong export earnings
that will insulate them from a domestic slowdown.
Some enjoy lucrative contracts with governments
worldwide to supply services or products.

CSL is undoubtedly one of the top picks

  • over the past 10 years shares have risen
    an average 22% each year (as at March
    28). ResMed is another high-flyer and its
    shares have increased an average of
    20% a year in the past 10 years.
    Investors should generally be cau-
    tious about earlier-stage biotechs, as
    they can take years to be make big prof-
    its, and many will fail. Any sign that a
    medicine doesn’t work or that a company
    can’t get a patent to protect its drug can
    cause a sharp drop in its fortunes.
    Michael Kodari, chief executive, Kodari Securities

The VanEck Vectors FTSE Inter-
national Property (Hedged) ETF
has listed on the ASX with trading
code REIT. VanEck managing di-
rector Arian Neiron says the ETF
offers a diversified international
listed property exposure at a low-
cost while protecting against cur-
rency volatility. REIT is hedged
to Australian dollars so returns
from the fund, including income
payments, are relatively unaffect-
ed by currency fluctuations.

The Vanguard Global Multi-factor
Active ETF (Managed Fund) is open
for investment, trading with the code
VGMF. Vanguard investment product
strategy manager Rachel White says
globally she has seen good adoption of
this strategy, with the blending of factors
(value, momentum and quality) helping
to smooth returns, reduce downside risk
and provide diversification benefits.

Over the next year eInvest will
partner with local and global
investment managers to deliver
ETF solutions to retail investors.
Managing director Camilla Love
says the expansion will give
investors choice, flexibility and
transparency of independent pro-
fessionally managed strategies
that would otherwise be available
to institutional investors.

of Australians feel pressured to keep up
appearances and maintain a certain lifestyle,
according to Mortgage Choice and CoreData’s
Financial Fitness report. It’s a bigger problem
for younger people as that number surged to
almost 50% among respondents aged 30
years and younger. Only 20% of people
aged between 51 and 60 felt the
same pressures.


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