Over the past four years since COVID, alternative investing has undergone a noteworthy expansion, particularly within private portfolios. This blog aims to delve into the democratisation of access for investors and the evolving role of alternative assets in diversified portfolios.
There are reasons to expect a better second half of 2024 for the economy: Income tax cuts will take effect from 1 July 2024, the prospect for interest rate cuts, rising real wages and a positive wealth effect for households from housing and the strength in the stock market.
As we approach the end of the interest rate rising cycle, we are seeing various indicators stabilise, including building materials, supplies, and stock. This is a positive sign that the market is adjusting, and we are closely monitoring these trends.
For Zagga, the year has begun, much like it ended, with a spate of activity. It was very pleasing, during the final quarter of 2023, to see several extended loans discharging, offering an opportunity for investors to re-cycle their money into fresher opportunities. We look forward to this trend continuing through 2024, as the industry implements solves for the various factors that caused these delays.
Cost pressures, labour costs and the interest rate hiking cycle have been headwinds to the sector in 2023. For 2024, with cost pressures easing and the labour market problems abating, the sector is poised for a stronger 2024 and 2025.
“It’s going to be a tough first half of 2024, I think, for the economy. But when we get to the second half, the tax cuts that we’re hearing so much about, will come through. If we get interest rate cuts and inflations under control, then the second half of 2024 will be a better year for the economy. And we could even have a pretty strong outlook for 2025.”
In today’s multifaceted investment landscape, sophisticated investors are seeking alternative investment opportunities which provide a more attractive return for risk proposition with lower volatility than what is currently available in the public markets.
2023 ended with a clear and marked slowdown… The key issues early in 2024 will be the extent of the fall in inflation – if it falls earlier and more aggressively than the RBA is currently forecasting, the start of the interest rate cutting cycle will be brought forward to the first half of the year.
At Zagga, we are pleased to have successfully navigated the turbulent waters of the past 12 months… We close 2023 with a sense that economic and market conditions overall will start to improve, with some sunlight now peeking through the clouds… We look forward to the continued support of all of our stakeholders as we sail into 2024. We are ready for whatever the conditions might be.
Zagga explains the mechanics of this alternative asset class, which can serve as a defensive investment option for income-focussed investors.
We would like to acknowledge the Traditional Custodians of the lands, seas, and communities in which we provide our services. We would also like to pay our respects to the Elders past, present and emerging, and the continuing cultural influence they have on Australia.
Zagga Market Pty Limited (Australian Credit Licence 490904) ACN 611 662 401 acts as the Servicer of loans acting on behalf of the credit provider, Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786, trustee of the Zagga Investments Lending Trust
All portfolio numbers quoted correct as at 31 January 2025.
*Average investor return across the active portfolio as at 31 January 2025.
**Target return is after expenses and any applicable management fees for the year ending 30 June 2024. OCR = Australian Reserve Bank Official Cash Rate.
Past performance is not a reliable indicator of future performance and investments are subject to investment risk, fees and costs. Returns are not guaranteed.
Prospective investors wishing to invest in a Zagga direct investment or a Zagga Fund should fully consider the Information Memorandum, ZFF Fact Sheet and/or ZWF Brochure, available from Zagga, before applying to invest. Investments are subject to risks.
Articles on this website have been prepared by Zagga Investments Pty Limited (AFSL 492354) ACN 615 154 786 (Zagga) for information purposes only. It doesn’t take into account your objectives, financial situation or needs, nor is it intended as a substitute for any accounting, tax or other professional advice, consultation or service. Nothing in this article shall be construed as a solicitation to buy or sell any financial product, or to engage in or refrain from engaging in any transaction.
Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Economic conditions may change.
Any analysis provided in this article is based on information obtained from sources believed to be reliable but Zagga does not make any representation or warranty that it is accurate, complete or up to date. Zagga accepts no obligation to correct or update the information or opinions in it. Any opinions expressed in this article are of the author and is subject to change without notice. Readers are reminded to exercise caution and use their own judgment when interpreting and applying the information contained in this article No member of Zagga accepts any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of such information.
