182 articles from
- Advice
- Alternatives
- Analysis
- Asset Allocation
- Asset management
- Compliance
- Daily Market Update
- Deeper Thought
- Defensive assets
- Economics
- Economics
- Education
- Equities
- ESG
- finance
- Fixed Income
- Focus
- Growth assets
- In Practice
- Industry
- Intel
- Investing 101
- Launches
- Legislation
- M&A
- Marketing
- Markets
- News
- Opinion
- Opportunities
- People
- Regulation
- Regulation
- Retirement
- Retirement
- SMSF
- Strategy
- Super
- Sustainability
- Technology
- Transactions
- Value proposition
A starter for yen: Ruffer
The Bank of Japan has been marching to a different beat than other central banks. While the Federal Reserve, ECB and Bank of England hurried to ramp up rates in a battle against inflation, a deflationary mist lingered over Japan. Until now…
The disorder of the Phoenix: A Ruffer story
Hatry’s downfall certainly provides a cautionary tale of the dangers of financial excess and the depths individuals will plumb in seeking to avoid exposure and catastrophe.
New generative AI is a boon for fundamental fund managers: Kollo
ChatGPT presents an inflection point in the quantitative investment journey, writes Michael Kollo, one that doesn’t need the presence of machine learning scientists or investment in costly data acquisition.
Alternative investments go mainstream and reshape the retirement paradigm
Up until recently, alternative investments were only really open to institutional investors, but with these now available at a wholesale and retail level the retirement strategy game has changed.
Central banks face a no-win situation: Ruffer
They can either tighten policy to squash inflation or ease to prevent financial contagion, but there’s no right answer for central banks according to Ruffer’s Duncan MacInnes.
Strong start to 2023 continues">
Strong start to 2023 continues
The Australian shares benchmark gained 60.1 points, or 0.8 per cent, on Monday to reach its highest level in nine months, at 7,388.2 points. The S&P/ASX 200 has had a good start to 2023, racking up a 6.4 per cent gain so far. The broader All Ordinaries index added 64.9 points, or 0.9 per cent, to 7,605, to be […]
The great pending advice transaction
Transaction has become a dirty word in financial services yet trust and strong professional relationships can be built on regular transactions over time, according to Bell Direct CEO Arnie Selvarajah.
Thinking in narratives and why stories matter
Stories help investors deal with uncertainty and imperfect knowledge. But contagious narratives which come to dominate can over-inflate expectations – and therefore prices – until a new one challenges and eventually replaces it.
Companies ditch IPO route, opening up new channels for investors
It’s a perfect storm: Companies are staying private for longer and finding “myriad” ways to raise capital outside the traditional IPO route, while investors are becoming attracted to the investment opportunities they present.
Pounding the Table for Small-Caps
We think small-cap investors are well-advised to follow the investment maxim, “Look to be fearful when others are greedy and greedy when others are fearful.”
Higher inflation, recession more likely: Franklin Templeton
Late July news of the Federal Reserve (Fed) increasing interest rates another 0.75% and a second negative quarter of economic growth (GDP) has created an uncertain environment for investors.
Midyear Outlook: Income arrives in many shapes and sizes
Income arrives in many shapes and sizes The first half of 2022 has been challenging for investors across all asset classes, and the uncertainties plaguing markets remain—particularly with regard to inflation, interest rates and the possibility of recession. Stephen Dover, Chief Market Strategist, Franklin Templeton Investment Institute says: “As we look toward the […]
Invesco Inclusive: Getting REAL
With inflation emerging from a long slumber to become a giant bugbear once more for the global economy and investment markets, investors are intensifying their focus on the search for assets that can offer some protection against inflation.
The income conundrum
The combination of rising global interest rates and increasing recession fears has complicated the current investing environment.
Turbulence ahead
After months of fretting about soaring inflation, markets are now fully in recession-fear mode.
Headwinds and tailwinds – beneficiaries of new EM landscape
Recent market events have shaken us all and, although the long-term investment outlook for emerging market equities remains positive, we thought it pertinent to revise our outlook in the shorter term.
China: Separating myth from reality
Here, I focus on five myths about China’s economy and its financial system. In offering more realistic assessments, my hope is to help investors better judge the opportunities and risks of investing in China.
The gathering storm
China’s bid for global power, climate change and the transition away from fossil fuels are three of the defining megatrends of our time.
Ruffer releases its 2022 Review
The 2022 Ruffer Review explores how turbulence lies ahead for investors as inflation volatility is set to be the biggest challenge for investors in a generation. Also discussed are risk and its repercussions, shifts in global politics and Great Power relations, a warming planet and shifting energy mix, as well as financial disruption and regime […]
The Bear Is Back—Now What?
Authors Chuck Royce, Chairman, Portfolio Manager, Royce Investment Partners Chris Clark, Chief Executive Officer, Co-Chief Investment Officer, Royce Investment Partners, Francis Gannon, Co-Chief Investment Officer, Managing Director, Royce Investment Partners, Royce Investment Partners 2021 was a year of decelerating optimism for many small-cap investors as performance momentum slowed as the weeks passed by between April […]
The investment case for Australian private debt
Inflationary pressures have been building globally for the past year, as seen in higher food, energy and transport costs. This is most evident in the US where pandemic-driven supply chain issues and prices for rental accommodation, used cars and some foods helped to push the January headline inflation reading to an annualised rate of 7.5%, […]
The perils of yesterday’s logic
Reimagining portfolios for tomorrow’s reality Increasing inflation volatility represents the greatest challenge to investors for a generation. A new regime and the collapse of the financial market status quo requires us to reimagine portfolios. No longer can we rely on yesterday’s logic. “Inflation is the endgame. Just brace for inflation volatility first.” Do we still […]
CRE debt continues to perform during periods of rising rates
With our long period of near-zero interest rates seemingly at an end, every investor’s attention turns to the balance of their portfolio. Conventional wisdom is that now is the time to rethink exposure to real estate investments because rising interest rates are a drag on property values and rising inflation benefits other asset classes. There […]
Negative real yields positive for gold
Sentiment is shifting in the discussion about the outlook for gold. The view that the gold price will continue to weaken, as it has done for much of this year, has given way to more positive forecasts. The reason is rising inflation, and the fact that inflation-adjusted bond yields are in negative territory – a […]
Solving for 2022
“The previous cycle was the longest in history and it ended only due to the exogenous shock of the pandemic”. This is one of the key takeaways from global multi-asset Neuberger Berman’s latest outlook paper titled ‘Solving for 2022’. The events of 2020 and 2021 have naturally pushed the memories of 2019 further away, but for […]
Less-travelled paths to alpha in structured credit
For most of 2021, global credit investors have been basking in the goldilocks environment of accommodative Fed policy, generous fiscal stimulus, and a rather strong economic recovery, despite some COVID-19 bumps along the way. The strong performance of credit risk assets has elevated valuation levels. As the prospects of Federal Reserve tapering, higher inflation, peak […]
How investing in the SDGs mixes good causes with great returns
The UN’s Sustainable Development Goals have captured investors’ imagination as a means of helping society while also capturing decent returns. And they’re gaining in popularity, with billions in inflows into strategies that follow them in the six years since their launch. The 17 goals are unique, as it is the first time in history that […]
An alternative source of income
Where commercial real estate (CRE) debt fits in a defensive portfolio with an income focus The problem with bonds Times are tough for investors or advisers looking to add value through a defensive portfolio. Defensive, or income assets, aim to provide income rather than capital growth. They generally carry a lower investment risk than shares […]
Syndication and fractional investing offer ‘free lunch’
In the 1950s American economist Harry Markowitz opined that diversification was the only “free lunch” in investing: a reference to the role of the tactic in protecting returns and building wealth for no additional financial outlay. The Nobel Laureate may have changed his mind after witnessing the hedonistic vibe of the 1980s, when business lunches […]
Resilience when it counts
When the going gets tough. As a financial adviser responsible for allocating your clients’ capital, COVID-19 presented sudden and unexpected challenges for most asset classes. Risk assets took an alarming hit but rebounded strongly, while defensive assets were mixed, with bonds performing weakly and cash not worth mentioning. Wherever your clients were invested at the […]
The case for investing in the real estate debt sector
Interest rates and hence yields from most classes of investment, have experienced significant compression. This is true of cash, fixed interest and equities. Elevated listed equity market valuations have further compounded the problem as investors also seek downside protection or at least volatility buffers. Private debt has the benefit of both, yield, and downside protection. […]
Five reasons fixed income still matters
Investors face a very uncertain environment today, with the COVID-19 pandemic still playing out, geopolitical tensions and a global economy characterised by low growth and high debt. It’s a good time for investors to remind themselves that diversification is an investment principle that never goes out of style, and that the among the most effective […]
Alceon Debt Income Fund rated ‘Superior’ by SQM
Alceon Group’s Debt Income Fund, which targets high, risk-adjusted returns from real estate lending, has been awarded a ‘Superior’ high investment grade rating in a new report by SQM Research, an independent investment research house. SQM says the commercial banks have reduced their exposure to real estate development and commercial real estate in recent years, providing […]
Trilogy Industrial Property Trust growth highlights soaring demand
Specialist property-based fund manager, Trilogy Funds, added another two properties to its industrial portfolio in June and July, with a third scheduled to settle in August, highlighting the soaring demand and underlying strength of industrial property across Australia. As part of the growing Trilogy Industrial Property Trust the fund manager finalised the purchase of a […]
Are you pricing water risk?
Devastating floods, unseasonal hurricanes, excessive droughts, megafires, and more demonstrate how extreme water risk is global now. From an investor’s perspective, the economic implications of risks related to water are significant and should be a consideration when investing. By 2030, the global population will likely exceed nine billion and the world will require 40% more […]
Risk-adjusted equity returns critical: Evergreen Ratings
Evergreen Ratings recently awarded the Alceon High Conviction Absolute Return Fund a “Commended” rating for its “tried and tested processes, with risk considerations at its core.” They suggest that fund manager Alceon Liquid Strategies (ALS) has a strong track record of consistently delivering above-average equity returns with low volatility. It demonstrated this capacity with positive […]
Australian ‘attention bias’ obscuring EM opportunities
Over the past month, Australians have been reminded that the COVID-19 pandemic is still keeping the country in check. Like many other countries around the globe, the lockdowns have wrought havoc on local business and more broadly, the global economy. Given the urgency and immediacy of the recent outbreaks and lockdowns, it’s perhaps not surprising […]
Asian Equities on the right side of disruption
Covid-19 continues to wreak havoc in some parts of Asia, resulting in humanitarian losses that will potentially have a deep and lasting impact on societal values and governance structures. The pandemic has highlighted wide gaps in public health and social security infrastructure that became matters of life and death in some countries. We believe the […]
Cryptocurrency emerging as hedge against looming inflation
As the Covid-19 pandemic continues to rattle global economies, cryptocurrency — and its most popular “coins,” Bitcoin and Ethereum — has proven to be an enticing asset for a flood of both new and experienced, opportunistic investors. 2021 has seen many highly regarded financial institutions enter the fray, with suggestions that the next-generation asset class may be emerging as […]
Getting real on rates
Inflation has been among the most popular terms across news headlines, research reports and economic forecasts. Whilst the loudest voices tend to dominate in the conversation, inflation is far from a certainty but global asset manager Eaton Vance suggest ‘it’s not an unlikely scenario’ and must be considered. Emerging markets bonds have been increasing in […]
Inflation and stretched valuations shine light on precious metals
With inflation running at its highest level in decades and the global economy getting hotter than anticipated, investors are wondering what to do. Bonds offer slim returns. As inflation has jolted higher, and central banks keep interest rates low, the real returns on bonds in rich countries have hovered below zero. Shares seem little […]
Robotics and automation stocks defy the tech sell-off
After an impressive rise in 2020, tech stocks have been hit by selling pressure so far this year. One tech sector that has defied the recent trend is robotics and automation. The ETFS ROBO Global Robotics and Automation ETF (ROBO) is up more than 4.9 per cent in the first five months of the year, […]
Hedge funds expect 7% crypto allocation by 2026
The wave of institutional adoption of cryptocurrency assets has been on the rise since the start of 2021. Leading banks and financial institutions have started to offer services in digital assets to the public. Several hedge fund billionaires including Ray Dalio and Stanley Druckenmiller have unveiled their crypto positions. Although the number of prominent names […]
Everyone is losing their mind over the wrong inflation signals
Everyone is losing their minds over inflation signals that don’t matter. It is hard to pick up a paper or piece of market commentary at the moment that doesn’t point to some piece of ‘evidence’ that inflation is here and roaring. We have been doing a lot of reading recently around the topic in the […]
Despite continued growth, tech remains underweight in portfolios
Technology has been the best performing sector for 10 years. And it has outperformed for the correct reason: it makes more money. The past decade, the tech sector saw its profits – as measured by earnings per share (EPS) – swell more than any other sector. Making matters better for tech, the rate of profit […]
Medical devices the next frontier of growth
Move over supermarkets, utilities and gold bullion. When it comes to defensive exposures, there’s nothing more compelling than medical device providers that prevent deaths from chronic diseases in rapidly ageing populations. According to global Sydney-based specialist equities manager Cordis Asset Management, chronic conditions such as cardiovascular and respiratory failure and diabetes account for 80 per […]
Is Team Australia tightening too fast?
When COVID-19 found its way to Australia the health advice was to mandate social distancing by closing businesses deemed non-essential and restricting people’s movement. The economic consequences were tragic – both at the aggregate level and because certain industries and occupations were far more heavily impeded. A broad and bold policy response was required, and […]
Market beta vs. active alpha – looking for a compromise
Passive management is often considered an economical way to get market exposure, with good risk diversification and few surprises beyond what the market delivers. However, indexing also means any return is limited to benchmark performance. What if there was a compromise? Read article.
Looking for the long-term ‘reopening beneficiaries’
As the COVID recovery gathers momentum, it is interesting to consider which sectors and companies are benefiting from the short-term boost of temporary stimulus measures and which present long-term opportunities as global growth recovers. We have identified three themes that frame our thinking about the long-term prospects of Australian small cap stocks: adding to high […]
Crypto the next big trend in financial planning
There are a plethora of reasons for advisers to dismiss Bitcoin and other crypto assets as a worthy holding in clients’ investment portfolios. For one, they’re for the most part unregulated. To say they’re volatile is an understatement. Let’s not forget the serious fraud and theft concerns that accompany it. But crypto is here to […]
Passive flows creating an opportunity for active managers
An illustration of why an active long-short approach to the global listed infrastructure (GLI) sector makes sense. ESG funds have gained in popularity in 2020, sometimes with a material impact on underlying holdings. This has impacted GLI stocks recently, with the iShares Clean Energy ETF buying 1%-6% of companies’ floats in a matter of weeks, leading to […]
GameStop saga invites scrutiny of brokerage practices
Groups of amateur investors that gather on social media forums such as Reddit have organized to buy stocks and options in companies with high short interest like GameStop, AMC Entertainment and Blackberry, among others. The buying activity drove the stocks up sharply over the last several weeks and resulted in a massive short squeeze with […]
Internet of finance to disrupt 2021 with new business models
In 1943, the president of IBM, Tom Watson, famously remarked that he saw a worldwide market for “maybe five computers”. Bringing that forecast up to date, IDC, a global technology research firm, predicts that by the time we reach 2025 the planet will host 56 billion connected devices. The internet of things (IoT) is not […]
Zen and the Art of Financial Advice
How do you know you need advice? Seeking advice can be a challenging endeavour for most people. It is not so much that advice is hard to find, but more so that the abundance of information out there offers so much but under it may lie hidden intentions but more on this later. Here are […]
Global credit set for cyclical recovery
Global credit will see a cyclical recovery in 2021 This year has certainly been one for the record books, leaving many to speculate what 2021 may bring. Given the expectations for a vaccine and the tremendous policy responses at work, Brian L. Kloss, Portfolio Manager at Brandywine Global, a global investment manager, believes there is […]
‘Potential hazards’ for passive bond strategies
Active management will be essential for fixed income investors looking to navigate fixed income markets in the months and years ahead As investors continue to grapple with the US election outcome, the economy, coronavirus developments, and other unknowns, the one certainty is that the ability to navigate the fixed-income markets will be critically important in […]
Superhero, Robinhood…..Sharesies?
The Kiwi counterpart of US online direct investment platform Robinhood is sounding out the Australian market for possible expansion. Brooke Roberts, co-founder of the Wellington-based Sharesies, said the firm was recruiting an Australian country manager. “We are looking at launching Sharesies in Australia,” she said. “But at the moment we’re working on a product that […]
Blackmore Capital puts ESG in action
Environmental (E), Social (S), and Governance (G) analyses consider a multitude of issues within the E, S, G pillars. For example, MSCI, one of the mainstream ESG data and rating providers, scores companies using ten themes and 37 different factors across E, S, and G categories. However, while these scores can provide useful information about […]
Bottom-up stock selection more important than ever
In a recent podcast, Aidan Farrell, Director of Global Small Cap Equities at Eaton Vance discusses investment opportunities presented by the global small-cap sector for Australian investors. He highlights: The MSCI World Small Cap Index captures small cap representation across 23 Developed Markets countries. With 4,203 constituents, the index covers approximately 14% of the free […]
Property is back in vogue – is debt the better play?
The investment grade (IG) REIT sector is certainly one of the worst affected by the COVID-19 pandemic. Across the June quarter, only 77% of revenues (rent etc.) were collected, with the retail sector collecting just 58% of contracted revenues. Net tangible asset values (NTAs) across the market declined 5.2%, driven lower predominantly by devaluations in […]
Pfizer’s Coronavirus vaccine – a closer look
A major milestone for Pfizer On 9 November 2020, Pfizer announced that its vaccine candidate, developed in collaboration with BioNTech, was more than 90 per cent effective in preventing COVID-19 in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis. After discussion with the US Food and Drug Administration (FDA), Pfizer […]
Impact investment in demand, but short supply
By now, people know what impact investing is and according to RIAA, impact assets under management in Australia have grown to about $19B at the start of 2020; up 250% in the past 24 months. Those are decent numbers, but there’s every indication we’ve barely scratched the surface of impact investing’s potential. The growth is […]
Vaccine ready – are we there yet?
This is an edited version of the full article, which is available here. The article pre-dated the US Election. Executive summary Societies and governments around the world are looking at a COVID-19 vaccine as the panacea that will enable the world to recover, reconnect and regain our way of life. Since the genetic code […]
The race for a COVID-19 vaccine – are we there yet?
Executive summary Societies and governments around the world are looking at a COVID-19 vaccine as the panacea that will enable the world to recover, reconnect and regain our way of life. Since the genetic code for COVID-19 was unlocked, researchers have set out in an unprecedented and coordinated effort to make a vaccine available on […]
Shining brightly – The true value of gold and how to use it
Gold has an almost mythical quality to it but assessing its true investment value doesn’t need to be shrouded in mystery. Some investors may still shy away from an asset viewed as difficult to accurately price or predict, but perhaps they are focused on the wrong metrics. Understanding the true value of gold is more […]
Income targeting in a Retirement Portfolio
Given the Retirement Income Panel’s work over the past year, super funds need no more motivation to answer the critical question: how can funds deliver an adequate pension to retired fund members? The question, however, can’t be answered without determining what an ‘adequate’ pension is. This ResearchBite considers how a hypothetical fund creating an income-targeted […]
Why the Budget was an ‘F’!
Aussie fund manager gives Budget an ‘F’ for FAIL The head of the Australian wealth and superannuation manager Nucleus Wealth, Damien Klassen, has drawn a pointed analysis of the Morrison/Frydenberg budget strategy. “The budget misses the mark big time by focusing on the supply side of the economic equation when in fact the biggest issue […]
Is it truly sustainable?
“Sustainable” is a trendy word nowadays. It is thrown around in marketing campaigns like a decorative pillow, which looks good, but most of the time feels flat. Companies and brands claim their products are ‘sustainable’ for the buzz and the hype, playing on our generation’s environmental consciousness and demand for products and services that won’t […]
To syndicate or not to syndicate?
If you are looking for one word to describe 2020, ‘volatility’ would seem to fit the bill. Every aspect of our lives, whether it be financially, socially, or work, has been like a roller-coaster ride. Into lockdown, out of lockdown. Often isolated from family or close friends. And then coping with investment markets that have […]
Water utilities – dull but dependable?
I want to discuss a water utility, which may sound as dull as dishwater – but we global real assets investors have never been averse to safe, predictable, and yes, boring companies. The type of company that pays a dividend that is as dependable as a birthday cheque from Grandma. We have specialist in-house capability […]
SDGs 10 years on – approach with caution
2020 marks the fifth anniversary of the establishment of the United Nations’ special development goals, or SDGs. The UN created 17 SDGs to address the global challenges society and corporates face, such as those related to poverty, inequality, climate change, environmental degradation, peace and justice. The SDGs were designed as a blueprint to achieve a […]
Integrity Life raises $43 million
Integrity Life secured $43 million in their recent series B round of funding. There was a strong interest in the raise, that took place before and during COVID-19. Given the instability of the global economy, this significant investment is being viewed by the market as further endorsement of the importance of Integrity’s digital-led positioning. The […]
Opportunities in Australian credit
Many investors may be wondering whether there is any value left in domestic fixed-income markets. While outright yields may look tight on a historical basis, we contend that spread sectors still provide attractive risk-adjusted returns relative to cash and government bonds. Indeed, there still exist a number of compelling risk/return opportunities for active managers to […]
Governance: Raising the bar
Governance is the pillar of environmental, social and governance (ESG) principles that investors have been actively considering for the longest period of time. This is not surprising, as in some ways, it could be said that governance is probably the most important aspect of ESG. An organisation’s board’s role is to appoint the CEO and […]
Stonehorn: fear = opportunity
They say that the first year of a new business is the hardest. Although there were moments when it felt like it might be, it hasn’t turned out that way for Sam Lecornu, Duke Lo and John Lam, partners in new Hong Kong-based Asian fund manager Stonehorn Global Partners. From a standing start in June […]
The Post-COVID economic factors to consider
For obvious reasons, everyone is focused now on the pandemic, the mitigation policies being put in place to control it and the huge monetary, fiscal and medical implications. But there are other external factors worth discussing for the impact they could have on the world’s major economies. The first one is inventory levels. Over the […]
Earnings volatility creates opportunity
The rollercoaster in global equity markets during the first half of the year is now behind us, and although the market has rebounded, many industries still remain affected by COVID-19. With an upcoming US election creating further uncertainty and a dull economic outlook, many investors and advisers are currently thinking – where to from here? […]
Building Climate Aware Portfolios
With climate change being increasingly recognised as a systemic risk, the investment community is becoming more focused on supporting the transition to a net-zero-emissions economy and establishing sound transition plans The announcement by Cbus Super is the most recent example. Last month, the $54 billion building and construction industry superfund launched a new Climate Change […]
Market rules. There are no rules
Investment markets are in the eye of the storm. The initial storm danger came as COVID-19 hit, decimating jobs and smashing demand.
ESG ratings under scrutiny
In the wake of the pandemic, investors have continued to pile money into variously labelled ESG/sustainable funds. Are they doing what they say?
Is it time to seek ESG improvers?
The popularity of ESG strategies means the world may be running out of appropriately priced investment opportunities in the sector. In this paper, Amundi writes that it may be time to look for companies that are seeking to improve their business practices but aren’t yet ‘ESG leaders’.
The cost of transition
Systematic investment group Parametric, offer a case study into the most important issue missed by institutional investors when they seek to change investment strategy; tax.
The power of engagement
Investing to improve lives is the mantra of Martin Currie, one of the world leaders in ESG investing. This annual report reviews the year that was highlighting seismic moves in society amidst the pandemic and flagging its extensive engagement on governance, meeting 178 companies.
The path to recovery
According to global asset manager Franklin Templeton there is no historical comparison for the magnitude of aggregate demand that is currently being destroyed . So how do we recover? Through a combination of co-ordinated policy responses and China likely leading the way.
An introduction to ETFs
A short summary sheet for clients and advisers, outlining the many types and options in the fast growing sector.
Eaton Vance
Gender diversity delivers benefits: ESG consulting group, Calvert, undertook extensive research into the impacts of female leadership in large companies. According to the analysis, boards with more than four women outperformed those with less.
Q2 Global Outlook
The COVID-19 recovery is looking more U than V-shaped as hoped, according to Western Asset Management. That said, lockdowns will act only as a disruption to a strong US recovery, with the group favouring consumer names across Europe and the US.
Drummond Property Consultants: Caution amidst headwinds
Since our 2020 Strategic Asset Allocation (SAA) review in June, we have remained modestly underweight the SAA reflecting concern about prospects for the asset class in the current environment. Recently, we reduced this exposure further, as our conviction has built that real estate will underperform the broader equity market over the medium term. Below, we […]
Eaton Vance Monthly Market Monitor
Embracing technology to improve profitability Net Wealth released their latest Adviser Tech white paper, once again exposing the slow adoption of technology in by financial advisers around the country. The report details the many new outsourcing and digital applications available to make advisers jobs easier, yet the industry remains hamstrung by the requirements of other […]
Seven Lessons After Seven Years of Building Robos in Asia
Let’s face it: most people find wealth management mysterious, tedious and something best done some other day.
The Modern Slavery Act – further sharpening the focus on “S” in ESG
The recent slavery scandal surrounding the fast fashion brand Boohoo has further intensified the focus on the “S” element within ESG factors. The “S” pillar has been gaining prominence since the start of the pandemic, with increased attention on how companies treat their workers.
The rise of restoration of oil and gas
A focus on oil and gas abandonment and implications for the ASX.
DNR Capital: “Quality companies poised to win”
Market risks appear more balanced, quality companies poised to win market share.
Social housing – A potential for good returns while helping those in need
A nascent asset class is emerging on the back of the roll out of the National Disability Insurance Scheme (NDIS). NDIS is a welfare support scheme of the Australian Government that funds costs associated with disability.
Green bonds in focus as ESG becomes entrenched
For much of the investment industry, committing to ESG (Environmental, Social and Governance) has become a recently-adopted core belief. A concept that was brought into focus 15 years ago at the 2005 Who Cares Wins conference, which examined its role in asset management and financial research, ESG has now become entrenched across the industry. Although there are still widely varying degrees of commitment to ESG, investing today in assets that adhere to these principles comfortably exceeds $US30 trillion – and is growing rapidly.
How is your porridge?
Too hot, too cold or, just right? It is suggested that this fairy tale has two moral issues, firstly, the sense of entitlement as Goldilocks freely samples the bears’ home and contents and secondly, question of what is ‘just right’.
Two of Australia’s largest funds name new CIOs
Australia’s Future Fund has named Sue Brake to take on the role of acting Chief Investment Officer at the $205 billion sovereign wealth fund. The fund promoted its former CIO, Raphael Arndt, to the role of Chief Executive Officer. Arndt has served as the Future Fund’s CIO since 2014, delivering exceptional returns, having joined in 2008.
6 benchmark busters; AU vs. US
It has been one volatile year to say the least. Both the Australian and US markets traded in volatile conditions with many asset classes and more importantly sectors delivering poor returns. From rising geopolitical trade tensions between the USA and China to an unprecedented pandemic that spread over multiple countries and brought the global economy to its knees, investors were dealt an unpredictable hand.
The sun shines on M&A activity in renewables
Mergers and acquisitions have come to a grinding halt this year. But activity in the renewable energy sector is heating up with a number of deals. According to Bloomberg data, in the wider market, Australia’s deal activity dropped to $13.8 billion in the first quarter of 2020, a 32 per cent drop from the 12 […]
What if?
Portfolio construction is a function of possibilities. Equity versus fixed income is the obvious; equity the potential of capital growth, and fixed income the promise of low-yet-secure returns. You can test returns based on evidence from whatever historic time frame you care to choose to prove the point. Click and drag the forecast, QED, quod […]
Adviser Profile: Matthew Scholten
Matthew Scholten is the executive chair of Scholten Collins McKissock in Melbourne. He is a Certified Financial Planner and has qualifications from the Australian Insurance Institute (AIA), the SMSF Association and the Association of Superannuation Funds of Australia (ASFA). Scholten became a member of the Inside Network in May 2020, seeking to create better outcomes […]
The future of big retail
The pandemic lockdown has forced businesses to rethink modes of distribution and introduce automation in response to an increase in online shopping for essential items. Qube and Goodman Group have welcomed the opportunity to expand operations with some of Australia’s biggest retailers. Integrated port and logistics provider Qube is at the forefront of driving automation […]
Banking sector outlook worsens
The recent flow of banking industry data suggests that things will get worse before they get better, and investors may want to hit pause on any plans they have to increase their bank shareholdings. The latest Australian Bureau of Statistics data shows that demand for consumer and business loans is falling, and in remarks this […]
SMSF operating costs get a reality check
Clients who have put off establishing a self-managed super fund due to the assumed high costs may be put at ease after the Australian Taxation Office released the median cost of an SMSF which is significantly lower than earlier reported figures. The ATO’s 2017-18 Statistical Overview of SMSFs shows the median operating expense of SMSFs […]
UniSuper appoints chief risk officer
The $85 billion industry fund for the higher education and research sector has finally filled the position of chief risk officer with the appointment of Andrew Raftis after Ruby Yadav resigned in December 2019. Raftis has over 20 years in compliance roles internationally including chief risk officer at AXA Asia Pacific, chief internal auditor of […]
A change in script on emerging markets
A lot of us spend an inordinate amount of time reading through erudite commentators on anything related to markets. ‘Stay informed’ is a common headline logo. Does this collective wisdom improve investment decisions? The current equity rally has a fountain of opinion on why and what it means. Wordplay is part of the fun: FOMA, […]
Is big picture small beer?
Great debates on longer term economic trends and the impact on financial markets are often a go-to conversation with investors. Few call up to ask what is the discount rate or cash flow yield, but many have opinions on issue such as debt and globalisation. The latter is a tough topic as globalisation is a […]
Suncorp names chief information officer
Former Commonwealth Bank executive Adam Bennett has been appointed as Suncorp’s chief information officer. He was previously at Commonwealth Bank for over 15 years and was most recently group executive business and private banking, executive general manager of local business banking and chief information officer for the bank’s retail and business banking divisions. He will […]
Finding the value in waste
A new take on environmental, social and governance (ESG) investing has emerged with the launch of a fund tackling sustainable opportunities in the water and waste management sectors. Fidelity International recently launched the Fidelity Sustainable Water and Waste Fund in Australia. In what is an under-researched sector, the fund seeks to deliver strong risk-adjusted returns […]
JB Hi-Fi expects big profit jump in FY20
JB Hi-Fi (ASX: JBH) has given another update to the market. It’s expecting a big profit jump in FY20. About the company JB Hi-Fi is one of Australia’s largest device and home appliance retailers with its network of The Good Guys and JB Hi-Fi stores. JB Hi-Fi was established in 1974 by Mr. John Barbuto (JB), […]
Upcoming webinars and virtual round tables
As working from home has become the new normal for most people, there are still many opportunities for advisers and investors to cut through the noise and hear insights from some of the best investment managers and research teams from a range of webinars and virtual roundtables being hosted online every day. Mirae Asset – […]
It’s gotta be bonds?
The toughest asset sector in an investment portfolio is the fixed income. Putting aside the difficulties in convincing an investor to have an allocation to fixed income when the conversation is sprinkled with mind-numbing terms such as duration, curves, and spreads, the even greater problem is low yields. Blind Freddie (rubbery etymology, with likely reference […]
Magellan’s next generation ETF is a ‘potential game changer’
Magellan Financial Group has done some back office re-engineering to develop what it claims is the next generation of active exchange traded funds – a “one unit” product that allows investors to transact through off-market applications and through the Australian Securities Exchange. Magellan subsidiary Airlie Funds Management has listed the Airlie Australian Share Fund on […]
Pandemic calls forth another capital raising
It seems that every day another ASX listed company is announcing a capital raising with mixed results. Most recently, Vicinity Centres revealed a $1.4 billion capital raising and an analyst is telling investors to subscribe. The shopping centre landlord successfully completed the $1.2 billion institutional raise after announcing it on Monday. A non-underwritten security purchase […]
Australian Super picks executive
Australian Super has appointed former Coles executive Sarah Adams as group executive, strategy, brand and reputation. She joins from Bushfire Recovery Victoria where she was executive director of communications and stakeholder relations. Prior to that, she was general manager of corporate affairs at Coles and held senior leadership positions within the Federal Government. First Sentier […]
How financial institutions could connect with customers in crisis
As the world undergoes potentially the greatest economic calamity since the 1930s, Australians of all ages are experiencing anxiety and fear about their financial wellbeing In fact, the great majority of Australians do not have a relationship with a financial adviser. According to the latest research by AMP, the advice gap is wide and getting […]
REITs: victims of fashion
A dedicated allocation to ASX listed REITs is largely an Australian idiosyncrasy as a legacy from the high weight and structural elements of the property trust sector in its heyday. The 2009 financial crisis should have put paid to the role REITs had in portfolios given their distribution cuts and capital raisings at the time. […]
Webinars and virtual roundtables you don’t want to miss
As working from home has become the new normal for most people, there are still many opportunities for advisers and investors to cut through the noise and hear insights from some of the best investment managers and research teams from a range of webinars and virtual roundtables being hosted online every day. Netwealth – Are […]
Spread is your value factor
Low interest rates justify high equity PE’s, and that is particularly so for long duration, high growth equities. So goes the story. It’s worked in recent years and therefore the evidence is there to support the pattern. A simpler argument is that low rates push investors into asset classes that can provide relatively higher returns, […]
BNK chief executive steps down
BNK Banking Corporation’s chief executive Simon Lyons has stepped down after over four years in the role. Lyons was chief executive of Goldfields Money prior to its renaming at BNK. The company’s deputy chair Don Koch has been appointed as interim chief executive while a search for a permanent replacement is undertaken. Koch has over […]
SMSF auditors in hot water
SMSF auditors have been put on notice after the Tax Practitioners Board (TPB) found several tax practitioners falsifying self-managed superannuation fund annual returns. Seventy-four tax practitioners have been identified after lodging 2017 and 2018 SMSF annual returns with an incorrect or fraudulently recorded SMSF Auditor Number (SAN). The review comes after the Australian Taxation Office […]
War vs. COVID-19
The scale of the human, social and economic costs wrought by COVID-19 has prompted some politicians to compare it with war. Although this might create some good political spin, which is always attractive to politicians, it is not correct. The differences between COVID-19 and actual war are many and varied. In truth, the only thing […]
Industry funds reign supreme
Sunsuper, QSuper and UniSuper are among the top funds announced at the annual Chant West Super Fund Awards. The $75 billion Sunsuper won Super Fund of the Year, Best Fund: Member Services, and Corporate Solutions Fund of the year. Geoff Peck head of client development at Chant West says: “SunSuper is a very strong all-round […]
CBA exec joins Insurance Council of Australia
Commonwealth Bank executive Andrew Hall has joined the Insurance Council of Australia (ICA) as its new chief executive. Hall was previously Commonwealth Bank’s executive general manager for corporate affairs for over seven years and before that was director of corporate and public affairs at Woolworths for over six years. Hall will take over from outgoing […]
Upcoming webinars and virtual roundtables
As working from home has become the new normal for most people, there are still many opportunities for advisers and investors to cut through the noise and hear insights from some of the best investment managers and research teams from a range of webinars and virtual roundtables being hosted online every day. BetaShares – Navigating […]
Small caps to remain attractive for investors
Following the March equity market correction due to the COVID-19 pandemic, global equity markets rebounded sharply in April, with the small cap sector outperforming. Although the short-term outlook remains uncertain, the market recovery was spurred on by several factors. Many companies were deeply oversold, with valuations having fallen significantly. Governments and central banks have responded […]
Scrubbing up the application of ESG
Amongst the headline noise on virus affected financial conditions, it is surprising that ESG seems to have gained an even stronger foothold.
Aussie tech stocks shine
If clients are seeking advice on where opportunities are in the Australia share market, they should not overlook a group of Australian technology stocks that withstood the pandemic and have strong growth prospects. Macquarie Securities analysts reveal that some technology stocks have continued to grow throughout the COVID-19 crisis as the disruption has accelerated the […]
Suncorp’s chief banking and wealth departs after three months
Lee Hatton has departed Suncorp as its chief executive of banking and wealth after just three months in the job. Hatton acknowledges that her departure is due to the impacts of the commute from Sydney to Brisbane on her family.Bruce Rush has been appointed as acting chief executive of banking and wealth until a permanent […]
Hybrids are back, and paying higher yields
The hybrid securities market felt the brunt of the COVID-19 crisis in March, when two issues were withdrawn and another issuer deferred redemptions. But last week Macquarie Bank relaunched its hybrid offer, offering a substantially higher margin than the rate on offer a few months ago. Macquarie Bank Capital Notes 2 was originally launched on […]
ETF Securities: FANGs defy rocky market
In hindsight, March 2nd, 2020, as the world started to get to grips with the scale of the global health emergency that was unfolding in the form of the Covid-19 pandemic, was an inauspicious time to launch a new investment product. In fact, the S&P/ASX 200 Index is down 19% since that day – after […]
Is risk management the new black?
After years of ever-increasing focus on returns to the extent that even fixed income allocations got caught in the vortex, there is a sobering reassessment of the risk profile across a portfolio.
Upcoming webinars you don’t want to miss
As working from home has become the new normal for most people, there are still many opportunities for advisers and investors to cut through the noise and hear insights from some of the best investment managers and research teams from a range of webinars being hosted online every day. Netwealth – Making sense of the […]
Examining Pushpay as a small cap holding
Pushpay (ASX: PPH) has just reported its 2020 financial year result. Is it the best small-cap to buy at this share price? What is Pushpay? It is a New Zealand based donation systems and software business for religious, not-for-profits and education providers in the US, Canada, Australia and New Zealand. Pushpay is used by over 7000 churches worldwide. […]
Advisers inundated with early release super enquiries
Strongly divided views about the wisdom of using the early release from superannuation have prompted large numbers of fund members to seek the advice of financial planners. Losing insurance cover, reducing retirement benefits and crystallising losses are the main issues commentators have highlighted. According to AMP’s technical adviser support team, early release of super was […]
Westpac creates new division, appoints CEO
Westpac has announced a new specialist businesses division and has appointed Jason Yetton as chief executive of the division. The specialist business division has been created to simplify the Australian and New Zealand banking businesses. This will include wealth platforms, superannuation and retirement products, investment, general and life insurance, auto finance and Westpac Pacific. Yetton […]
No quick turnaround on bank dividends
Investors hoping that the big banks will restore their dividends sooner rather than later are likely to be disappointed, as the earnings pressure on the banking sector will continue into the 2020/21 financial year. The banks’ March-half earnings (December-half in Commonwealth Bank’s case) fell by an average of 33 per cent, driven by big increases […]
Stress testing supply chains
Our underlying companies in the Legg Mason Martin Currie Global Long Term Unconstrained Fund have shown resilience in terms of balance sheet strength and relative share price performance. However, given the unprecedented nature of the exogenous shock, and the recessionary environment we are going through near term, we have identified a limited number of risks, […]
Purposeful engagement is more effective than shareholder activism
Shareholder activist groups are diverting company management’s time and energy towards narrow environmental and social causes. We explore why active ownership and purposeful engagement can achieve a better outcome for all stakeholders.
Industry battles over early super release
The superannuation industry is deeply divided over whether the government’s decision to change the super early release rules is really in the interest of the super fund members.
The measure allows Australians to apply via myGov for access of up to $10,000 of their superannuation from April this year and an additional $10,000 from July 1 2020 for another three months.
Assessing the impact on Australian small caps
The COVID-19 global pandemic is unfolding quite differently to all other major market events seen through history. Governments globally are facing a delicate balancing act between trying to minimise the health impact of the virus, whilst managing the severe disruption to their economies. The sudden and sharp shock facing the global economy appears without precedence.
Not even normal for a crash
Stock markets have crashed, we can be confident of that. History suggests there is no quick recovery from crashes like these, which means lasting consequences for investors.
A 10-point plan to avoid recession
The world economy is teetering on a knife edge: the Chinese and Indian economies were slowing even before the COVID-19 Coronavirus, and as Australia was recovering from one of its worst bushfires.
Forget more compulsory super
The Grattan Institute has released its submission to the government’s retirement incomes review, a review called in anticipation of five annual increases in compulsory superannuation contributions, scheduled to begin in July 2021.
Restore tax in the super pension phase
The government’s retirement income review is being told our current tax and benefit treatment of retirement incomes is a mess.
Choosing a brand for the future
As a business evolves, one of the issues it must deal with is whether its branding adequately reflects product and service expansion over time. This is a question we have had to address at SuperAA (Superannuation Advisers Australia), a business that was launched in 2013 with the aim of offering SMSF audit services and technical support to accounting firms.
The rise of renters by choice
The private rental sector has expanded at more than twice the rate of the increase in Australian households in the last two decades. This increasingly diverse form of tenure now houses about one in four of us.
Changing ETF landscape in 2020
The ETF landscape continues to rapidly expand beyond the replication of major stock market indices such as the S&P/ASX 200 and S&P 500. Today’s investor can choose ETFs across different sectors, based on certain themes or even offering alternative weighting schemes, like yield or value, captured by the phrase smart beta.
Scrutiny will lead to improved outcomes
Over the last few weeks there has been a heightened level of debate concerning Listed Investment Companies (LICs) and Listed Investment Trusts (LITs). As always, industry experts have presented thoughtful, considered positions following ASIC’s analysis provided to Treasury on LIC performance.
We need to modernise how we measure national wealth
I recently tried an experiment. I changed several light bulbs, and since one required a little rewiring, I sent my wife (also known as the majority shareholder) a bill for $110.50 (plus GST). In return, she sent me a bill of $457.98 for her preparation in late December of a sumptuous meal, plus her work managing all social connections associated with the holidays.
A crisis of underinsurance threatens to scar rural Australia permanently
Australia is in the midst of a bushfire crisis that will affect local communities for years, if not permanently, due to a national crisis of underinsurance.
The price of staying at home
Regardless of where they live, investors have a significant opportunity to diversify their equity portfolio outside of their home market.
Limiting cash payments to $10,000 is more dangerous than you might think
We are used to being able to pay for things with legal tender. Other than in special circumstances, refusing to accept cash can have legal consequences.
The great wealth transfer: the risks and opportunities for advice firms
Australia, like the rest of the developed world, is on the verge of the largest intergenerational wealth transfer in history. It’s estimated more than $3 trillion will change hands over the next 10 to 20 years as the Baby Boomer generation pass on their wealth to others.
We’re delaying major life events and our retirement income system hasn’t caught up
Asked to conduct an independent review of Australia’s retirement income system, the panel appointed by treasurer Josh Frydenberg reported on Friday that it was all tied up with the family home.
The robbery of the century
It has been called “the robbery of the century”. Martin Shields and Nicholas Diable, two British investment bankers, are on trial in Germany for helping structure a massive tax evasion scheme, known as cum-ex trading, that has siphoned up to €55 billion (about US$60 billion or A$90 billion) from European public funds.
Does monetary policy work any more?
In its latest quarterly statement on monetary policy, the Reserve Bank of Australia declared its preparedness to “ease monetary policy further if needed”.
Six positive catalysts that could surprise investors
Over the last year, 10-year German Bund yields have gradually declined. Investor sentiment deteriorated over the course of this period as the US-China trade dispute dragged on, taking global growth down with it.
The rise and fall and rise again of businesses serving more than just their shareholders
What’s the purpose of a business? For a long time, the textbook answer to that question has been purely “to make as much money as possible for its shareholders”. But business leaders – who often themselves get huge payouts from this model – are beginning to challenge this orthodoxy.
Markets may be expecting too much of central banks
The third quarter capped the best year-to-date return for the Bloomberg Barclays US Aggregate Bond Index since the first nine months of 2002. Although bond prices may continue to advance, we anticipate lower returns may accompany a rise in volatility in coming quarters.
Failing to pass on the full rate cut needn’t mean banks are profiteering
The unwillingness of the major (and other) banks to immediately cut their headline mortgage rates by as much as the Reserve Bank cuts its cash rate always attracts bad press, as well as condemnation from treasurers and prime ministers.
Super guarantee debate goes another round
The debate about whether compulsory employer superannuation contributions should be increased from the current level of 9.5 per cent is constantly simmering, waiting for the next opportunity to boil over.
In Australia, inequality is almost all about housing
Compared with the rest of the world, income inequality is not particularly high in Australia, nor is it getting much worse. The real problem is housing inequality.
Talk about an index fund bubble is very passive-aggressive
If you’ve seen the movie The Big Short you will remember Christian Bale’s quirky character Michael Burry – the manager of the Scion Capital hedge fund who realises the US mortgage-backed security market is a massive bubble. He goes on to make a fortune by betting on its crash.
Why now is the right time for value
The past two years have seen poor performance for value style indices and typical value managers globally, and stronger performance for momentum, growth and quality factors. There have been recent comments in the market that value is broken or that this could be the death of value.
CIPR is an opportunity not a chore
Superannuation funds need to get on the front foot and respond to the strategic challenge of developing good retirement solutions now. Although superannuation funds can follow the Government’s legislative timetable to develop a Comprehensive Income Product for Retirement (CIPR) by 1 July 2022, that’s hardly an optimal outcome for fund members who have retired or are making retirement plans now.
The end of shareholder capitalism
Capitalism’s days may be numbered – at least judging by recent polls. A majority of millennials reject the economic system, while 55 per cent of women aged 18 to 54 say they prefer socialism. More Democrats now have a positive view of socialism than capitalism.
Developing a Trumptweet investment strategy
On August 1, President Trump sent four tweets about China. With tweet three, which talked about additional tariffs on US$300 billion of goods exported from China to the US, Trump rocked markets by publicly escalating trade war rhetoric.
Proceed with caution in emerging markets
Investing in emerging markets is a bit like making a soufflé: it’s a courageous undertaking fraught with the risk of things not working out as hoped. EM economies may be buffeted by political strife, currency crises, and other upheavals, leaving investors a bit deflated.
Will business and consumer confidence converge?
Global consumer and business confidence have diverged, a trend that started in 2018. It is otherwise pretty rare, only occurring two other times over the last 30-plus years.
Equity income opportunities in focus
The global Purchasing Managers’ Index (PMI) has been in decline since 2017. Combined with the heightened risk of a prolonged US-China trade war; this has caused global interest rates to decline and for the US Federal Reserve to halt any further tightening of monetary policy.
There is a problem with retirement incomes but it isn’t the super guarantee
There is a case for not proceeding with, or at least further deferring, the legislated increase in employers’ compulsory superannuation contributions from 9.5 per cent to 12 per cent.
Home ownership is no longer a one-way street
More than in many countries, in Australia home ownership has traditionally been seen as a journey, with most of us aspiring to own a home and pay down a mortgage by the time we retire.
Phony competition inducing consumer paralysis
Do you think you are paying more than you should for energy, banking, insurance, internet and phone services? You are not alone, and you are probably right.
Help wanted, advice needed… digital wealth to the rescue
Fewer people in Australia are likely to get financial advice in the wake of the Hayne Royal Commission – the inevitable consequence of implementing the final report’s wide-ranging recommendations.
The greening of China
I recently returned from a research trip to China and was struck by how seriously environmental issues are now being taken by government and town planners. As China continues to develop, environmental issues are increasingly front and centre in what is described in the country as a “war” against pollution.
Taking ESG beyond impact investing
For fixed-income investors, understanding environmental, social and governance (ESG) factors – as they are financially material to performance – has proven to be critical in assessing an issuer’s fundamental quality.
New Zealand’s search for an alternative to GDP
Last week’s wellbeing budget in New Zealand was based on the Livings Standards Framework (LSF), a set of wellbeing measures that include cultural identity, environment, income and consumption, and social connections. But these provide no overall index of the nation’s performance.
What Tversky and Kahneman could have told Shorten
The Australian Labor Party’s 2019 election campaign showed a depth and breadth of economic policies rare for an opposition party to present. Its policy agenda was boldly extensive. But in developing these policies over the past five years, it seems Labor’s economic minds overlooked some fundamental principles of behavioural economics.
First home buyer assistance plan: handle with care
The Coalition has put forward a scheme to help first home buyers get into homes, under which the government will underwrite a loan of 15 per cent of the value of the home, to be treated as part of their deposit, taking a deposit of 5 per cent up to 20 per cent.
Developing an alternative GDP
As the federal election approaches, we’re expected to drown in slogans like “lower taxes”, “wage growth”, “franking credit reform” or “negative gearing reforms”. These mostly assume voters are as obsessed as the politicians with economic and financial issues, rather than, say, the kind of Australia they want their grandchildren to live in. There’s no doubt […]