MLC looks offshore for growth amid inflation, energy pressures

InvestorDaily

Rising inflation, energy policy pressures and limited domestic growth are pushing MLC overseas, with global listed infrastructure emerging as a key opportunity. Domestic energy positioning and the realities of inflation in Australia are prompting MLC to focus on global growth opportunities, according to portfolio manager Anthony Golowenko. Speaking to Investor Daily, the firm’s managed account strategy lead said that while there are opportunities in Australia, these risks are pushing the firm to look increasingly offshore into both developed and emerging markets.

“There’s a range of profitable companies in Australia, and there’s a range of businesses that generate really strong cash flows. [But] we don’t see a whole lot of growth, particularly in that larger cap space,” Golowenko said. With the Reserve Bank of Australia (RBA) expected to lift rates at least once or twice more this year, he added that while this could weigh on growth, it could support the Australian dollar, making global investing more attractive on a hedged AUD basis. As of 22 April, the Australian dollar is trading at 72 US cents after surging to a four-year high over the past week. His comments follow the International Monetary Fund’s (IMF) recent warning that Australia faces slower growth and hotter inflation from Iran war-driven energy shocks.

The rest of this article can be found at investordaily.com.au.