EP84: The rise of policy‑driven markets - Macquarie Asset Management

In this episode of the Portfolio Construction Podcast, Paul O'Connor is joined by Brett Lewthwaite to unpack how deglobalisation, rising policy intervention, and AI are combining to create a more volatile, policy‑driven market and to discuss why portfolios may not be positioned for it. Tune in to hear a discussion on: How the shift towards national self‑reliance is increasing market instability and reinforcing the need for a more active portfolio approach Why policy awareness is becoming as important as fundamentals, as governments and central banks play a larger role in shaping rates and market outcomes How AI may be acting as both a deflationary force and a source of disruption, increasing uncertainty around business models, valuations, and long‑term returns Why many portfolios still reflect a low‑rate, low‑volatility environment and Brett's perspectives on how this is viewed in current market conditions

In this episode of the Portfolio Construction Podcast, Paul O'Connor is joined by Josh Scoville, Global Head of Research at Hines, to explore how global real estate markets are evolving and why property cycles are starting to turn after the 2025 low. Drawing on Hines' global research and frontline experience, the conversation examines how macro shifts, geopolitics and sector dynamics are reshaping real estate outcomes globally. Tune in to learn: Why global real estate is emerging from a period of repricing and low activity, and why 2026 is shaping up as an important vintage for investors How industrial and living sectors are leading real estate returns, with performance now driven by income growth and active asset management rather than simply valuation uplift How deglobalisation and geopolitical tension are increasing the importance of local asset selection, while risk management is best addressed through global diversification How liquidity and currency risk are managed in an evergreen global real estate portfolio, without compromising long‑term returns Disclaimer: The information provided is general information and is not indicative of future results. Outcomes may vary depending on strategy and market conditions.

In this episode of the Portfolio Construction Podcast, Paul O'Connor is joined by Mike McCorry, Chief Investment Officer of BlackRock Australia, to unpack how AI is becoming a dominant force shaping markets, and the risks this is creating for investors. Tune in to learn: Why the performance of a small group of AI‑heavy mega‑cap companies is now driving a disproportionate share of market returns and volatility Why AI is fundamentally different from past technology cycles, requiring massive upfront investment in data centres, chips, energy and grid infrastructure How the gap between AI spending now and profits later is raising debt levels and making market outcomes more sensitive How this environment strengthens the case for active, selective decision‑making, as concentration, timing risk and uncertainty make broad exposure less reliable   Important Information: This material has been created with the co-operation of BlackRock Investment Management (Australia) Limited (BIMAL) ABN 13 006 165 975, AFSL 230 523 on [13/03/2026]. Comments made by BIMAL employees here represent BIMAL's views only. This material provides general advice only and does not take into account your individual objectives, financial situation, needs or circumstances. Before making any investment decision, you should obtain financial advice tailored to you having regard to your individual objectives, financial situation, needs and circumstances. Refer to BIMAL's Financial Services Guide at blackrock.com/au for more information. This material is not a financial product recommendation or an offer or solicitation with respect to the purchase or sale of any financial product in any jurisdiction.

In this episode of the Portfolio Construction Podcast, Paul O'Connor is joined by Jacob Mitchell, CIO and founder of Antipodes, to explore how pragmatic value investing can cut through market hype. Tune in to learn: What pragmatic value really looks like in today's market and how to use industry‑level insights to help avoid value and growth traps Why AI adopters, not AI hype stocks, can offer more sustainable long‑term opportunties and how to tell the difference Why Europe stands out, with resilient industrial companies and banks growing their margins at attractive valuations Why gold has strengthened, supported by tighter industry discipline, better operations and rising demand as countries diversify away from US‑dollar reserves Why relying on a handful of large, highly priced companies increases benchmark risk, and how active strategies can help navigate uncertainty

In this episode, Paul O'Connor sits down with Matthew Webb, co-founder of Scarcity Partners, to unpack private equity's next frontier: GP staking. Discover how shifting from funds to backing managers is rewriting the growth game. Tune in to learn: Why backing businesses and leaders, not just individual funds, gives you exposure across all their investments, bypasses the J curve, and can unlock greater growth potential Why the right strategic partnerships drive scale, and how to seize this opportunity in the Australian market Disciplined due diligence: How Scarcity Partners' multi‑stage process and deep relationship building surfaces the best managers How private markets could make up 10% of Australian wealth portfolios and why GP staking can help position you for early advantage*   Want to deepen your understanding of private market due diligence? Discover insights from 12 industry thought leaders and their five-stage approach to refining the process. Download now.      Disclaimer: Information provided is general information and not indicative of future results. *Depending on strategy and market conditions.

In this episode of the Portfolio Construction Podcast, Paul O'Connor is joined by Max Swango, Managing Director and Global Head of Client Portfolio Management at Invesco Real Estate. Together, they unpack the forces reshaping global property portfolios - from retail's resurgence and shifting office dynamics to the rising demand for residential assets. The conversation explores strategies to diversify across property sectors and the realities of investing in fast-growing sectors like data centres. Get insight on: The shift in property portfolios: office exposure plunges while industrial real estate and residential property dominate Why retail property offers short-term upside, residential drives medium-term growth, and targeted office assets remain a smart long-term play The risks and opportunities in data centres, and why a cautious approach is essential The expanding role of private markets and alternatives in institutional portfolios, and why property continues to be a core allocation   Curious about the bigger picture? Netwealth's latest private market reports dive deeper into the rise of private real estate and niche lending, showing how global investment professionals, from Lipman Burgon to Evidentia, are making private real estate a cornerstone allocation in client portfolios. For more insights, download the reports now.

In this episode of the Netwealth Portfolio Construction Podcast, Paul O'Connor is joined by Helen Mason, Portfolio Manager at Schroders Investment Management Australia. Helen explores the real story behind Australia's credit markets and where change sparks new opportunities for advisers and investors. Get insight on: How APRA's phase-out of hybrids and the shift to Tier 2 capital are changing liquidity, pricing, risk, and yield in Australian credit markets Why credit is now preferred over equities for stable income, lower volatility, and capital preservation How Australia's strong economy, bond yields, and rate cuts are creating new opportunities in fixed income and credit The rise of private credit and commercial real estate lending, and the importance of liquidity, diversification, and regulatory scrutiny for robust portfolios

In this episode of the Netwealth Portfolio Construction Podcast, Paul O'Connor is joined by Jay Sivapalan, Head of Australian Fixed Interest at Janus Henderson Investors. Jay shares his perspective on how shifting geopolitical and macroeconomic forces are reshaping investment strategies. The conversation explores: How China's leadership in renewable energy, shipbuilding, and electric vehicles is opening fresh investment opportunities The race for technological dominance, particularly in AI, and its impact in transforming industries, reshaping supply chains, and redefining global trade and security Australia's need to diversify its export mix, pointing to opportunities in services, education, tourism How active management in fixed interest is unlocking high-yield opportunities across government, corporate, and infrastructure debt The importance of long-term thinking and understanding how policy and regulatory factors influence portfolio performance

In this episode of the Netwealth Portfolio Construction podcast, Paul O'Connor is joined by Eric Almeraz from APIS Capital Advisors, Eric offers a window into the world of global small caps, where 90% of listed companies live. Eric shares his thoughts on: How to spot value and avoid traps in a universe of 19,000 stocks, many of which they think are under-researched and mispriced. Why small caps are a goldmine for shorting, with themes like Chinese renewables and broken growth stories - companies that are over-earning or benefiting from temporary booms. What makes a contrarian view profitable, and how APIS used deep research to uncover a multi-year opportunity in overlooked tech. How regulation is reshaping industries, with real-world examples. Why AI isn't just hype, discover how AI is impacting investment strategies.

When over 50% of a portfolio's offshore assets are USD-denominated, currency risk isn't just a theoretical issue—it can be a real drag on performance. In episode 75 of the Portfolio Construction Podcast Series, Paul O'Connor (Netwealth Head of Investment Management & Research) speaks with Tom Averill, Managing Director of Rochford Capital, about how investors can more effectively manage USD exposure—especially with the AUD near the low end of its long-term range. They discuss why traditional hedging tools often fall short, how the Rochford Leveraged Long AUD Fund provides targeted FX exposure through OTC derivatives, and why this can be a more accurate, scalable, and tax-efficient solution than switching between hedged and unhedged funds. Also covered: the macroeconomic outlook for the Australian dollar, implications of the US credit downgrade, the growing structural role of China, and how geopolitical shifts are reshaping global currency dynamics.   To learn more about today's guest and Netwealth, visit: 👉 Super Accelerator (for super): https://www.netwealth.com.au/web/personal/super-and-smsf/super-accelerator-plus/?utm_source=pc 👉 Wealth Accelerator (for investment accounts): https://www.netwealth.com.au/web/personal/investment-solutions/wealth-accelerator/?utm_source=pc 👉 Compare Funds & Models tool to view investments: https://www.netwealth.com.au/nw/Fund/CompareFundsAndModels?utm_source=pc   Timestamps:  00:00 – Intro & context: AUD volatility, USD exposure, and the case for smarter hedging 01:45 – Meet Tom Averill: Background in FX, macro strategy, and launching Rochford Capital 05:10 – Institutional hedging explained: Why hedging behaviour differs across asset classes 08:00 – Is the AUD undervalued?: Long-term range, fair value metrics, and capital flows 11:40 – US downgrade & structural debt risk: What rising deficits mean for USD confidence 15:30 – Global dynamics: China's slowdown, US retrenchment, and implications for AUD 18:25 – The Rochford fund mechanics: 3x leveraged AUD exposure via OTC derivatives—not futures 23:05 – Precision and efficiency: Why the fund helps avoid CGT events and hedging inefficiencies 26:50 – Cash management & execution: Managing liquidity, carry, and cost through institutional relationships 30:40 – Portfolio applications: How direct investors and advisers are using the fund for targeted hedging 35:10 – AUD/USD outlook: Interest rate differentials and the case for longer-term AUD strength 38:15 – Key takeaways: Where the fund fits in portfolio construction and risk management   Disclaimer: Netwealth Superannuation Services Pty Ltd issues Netwealth Super Accelerator. Netwealth Investments Limited issues the Netwealth Wealth Accelerator Multi-Asset Portfolio Service. Information contained within this podcast is of general nature only. Consider whether the products are appropriate for you and seek advice where required. To help you decide, read the PDS or IDPS Guide and TMD available at https://www.netwealth.com.au/