Australian investors face increased challenges as local interest rates remain elevated while global rates potentially decline, according to asset consultancy Atchison. Principal Kev Toohey noted a significant shift away from the market conditions that shaped portfolios over the past decade. Atchison provides asset consulting services, helping clients manage and grow their investments through strategic advice and tailored solutions. The firm assists a diverse range of clients, including superannuation funds and other institutional investors, in navigating complex financial markets.
Toohey explained that higher rate volatility, uneven growth, and greater dispersion across regions mean that broad, passive exposure is becoming less effective. This divergence strengthens the argument for looking beyond Australia, given the local sharemarket’s high concentration by global standards. The consultancy suggests that Australian investors reduce their reliance on the concentrated domestic market and maintain a bias towards international equities.
According to Toohey, international equities offer broader earnings drivers and more effective diversification. However, he clarified that this shift does not necessitate a complete portfolio overhaul. Instead, investors should prioritise disciplined portfolio construction and be selective about the risks they undertake.
Toohey cautioned that real assets remain vulnerable amid ongoing rate uncertainty. He also noted that investment outcomes are increasingly determined by strategic allocation decisions rather than broad market trends. Investors need to focus on careful asset allocation in order to see returns, according to the report.
