News

STOCKHEAD & THE AUSTRALIAN
As investors adapt to a changing market environment, resilience has become a central focus of portfolio construction. Ongoing geopolitical tensions, heightened volatility, rising rates and persistent inflationary pressures are driving greater attention toward assets capable of providing downside protection. Compounding the pressure is the rising correlation between traditional bonds and equities, with investors recognising that traditional portfolio construction may no longer be fit-for-purpose.

DEAL STREET ASIA
Geopolitical concerns and broader macro uncertainties are driving some major allocators to recalibrate their portfolios, including reducing what has traditionally been significant exposure to the US.

COMMO
Australian real estate private credit is attracting attention and capital from the ASEAN region as investors seek reliable income and increased diversification amidst global headwinds, according to the latest whitepaper research from specialist real estate private credit investment manager, Zagga.

NEWSFLASH ASIA
ASEAN investors are increasingly turning to Australian real estate private credit as a means of securing reliable income and diversification amidst global economic uncertainties. This trend is highlighted in a new whitepaper by Zagga, a specialist in real estate private credit investment. The research reveals that 49% of ASEAN investors intend to boost their exposure to private credit, a figure that is 10% higher than the global average.

SELF MANAGED SUPER
Private credit portfolio allocations remain popular among SMSF members, but a fund manager operating in the space has recognised more education is required for all investors interested in the asset class.

Zagga has noted SMSFs and high net worth individuals account for over 50 per cent of its assets under management, but also recognised more educational work is required to ensure individuals properly understand the risks and opportunities these types of investments present.

INTERNATIONAL FINANCING REVIEW
Some parts of Australia’s real estate sector may struggle to attract funding as private credit lenders become increasingly selective amid tougher market conditions and heightened regulatory scrutiny.

Real estate now makes up approximately half of the private credit lending market of around A$200bn (US$138bn) in Australia according to the Australian Securities and Investments Commission’s estimates and looks like it is headed for its first period of genuine credit differentiation with industry sources divided over whether the higher construction costs, forced revaluations and changes in underwriting will cause a slowdown in some real estate projects or just significant repricing of risk.

ADVISER VOICE
The rapid growth of Australia’s private credit sector has outpaced investor understanding of the asset class, creating a gap between rising participation and a deeper appreciation of the risks, opportunities, and structural differences that distinguish high-quality strategies from the rest of the market, according to real estate private credit investment manager, Zagga.

STOCKHEAD & THE AUSTRALIAN
The Federal Budget may have done something decades of market volatility couldn’t – make Australian property investors think twice about chasing growth.

For decades, the Australian investor playbook has been remarkably simple.

But according to Zagga CEO and Co-Founder, Alan Greenstein, whose firm specialises in funding residential property projects through private capital, the Federal Budget may have introduced something the market has not seen in a very long time.