In this instalment of Inside the Rope, David welcomes Jason Coggins, previous Head of Investment Research at Koda Capital. Jason delves into the nuances of building investment portfolios, the dynamics of public and private market investments, as well as the importance of choosing the right investment managers.

He underlines the crucial aspect of tailoring portfolios to meet client expectations, ensuring both technical robustness and effective organisational execution. Jason stresses the critical role of client involvement, the wealth of experience, and the synergy between client objectives and manager commitments to their own strategies.

Further, he explores the concept of the opportunistic investment segment, which encompasses strategies with a longer time horizon, advocating for a cautious and methodical approach to capital allocation to mitigate the risk associated with timing in investments. This approach also involves avoiding an over-concentration in sectors like commercial real estate, tapping into global partnerships for enriched investment perspectives, and acknowledging the implications of fund size on performance.

The conversation also covers the pivotal role of a manager’s historical performance and the strategic importance of risk diversification within a portfolio as a means to minimise potential losses and sustain returns.

In this enlightening episode, guest Michael discusses the current state and future predictions for the Australian real estate and investment markets, highlighting the challenges posed by projected population growth and supply chain issues. He details how an influx of one and a half million people is affecting housing supply, stimulating discussions among politicians and media alike.

Michael points out the increasing demand in industrial sectors due to the rise of e-commerce and logistics, with a parallel decline in traditional retail spaces, a trend exacerbated by the pandemic. He also touches on the unstable conditions of the office and retail property markets, recommending prudence due to the observed downturns, especially in the U.S.

Michael emphasises the importance of focusing on sectors with robust fundamentals, like residential and logistics, and the need for adaptability in a fluctuating market landscape. He talks about the importance of aligning investment strategies with the ever-changing market needs, such as sustainability and decarbonisation, especially during global upheavals. The conversation rounds off with insights on the necessity of aligning managerial interests and having ‘skin in the game’, offering listeners an understanding of the ongoing dynamics in Australian investment and real estate sectors.