October’s share market plunge confirms the view that traditional investment methodologies have their limitations and can be a very unsettling way to protect and grow your wealth. Here we argue that the long-established “endowment model approach” should be embraced for those in charge of their own destiny. Show More
A rising tide lifts all boats, and the ten-year bull market has made it more important to be in the boat than to be sailing it well. Simon Doyle at Schroders cautions that while Asset Allocation hasn’t mattered in recent years… it will be critical now that the tide is... Show More
We sat down with Simon Doyle, Head of Fixed Income & Multi-Asset at Schroders, and asked him how he would allocate a million dollars today. In his responses to this tough question he made it clear that it’s not a good time to be building a big position in equities. Show More
With challenges for equity markets rising, even a defensively positioned balance fund, with just 45-50% equity exposure could struggle to deliver positive returns, warns Simon Doyle, Head of Fixed Income & Multi-Asset at Schroders, who emphasises that true flexibility in asset allocation will be critical ahead. Show More
In this note, we look at what the Bogle Model currently forecasts for average equity returns in the US and Australia over the next decade. Show More
After what has been a very long run of strong market returns, it is only natural that investors’ attention starts to move toward when that run might end, and as each day passes, we move closer to the end of the cycle. This kind of sentiment understandably makes investors somewhat... Show More
The recent Lehman anniversary had market commentators everywhere asking how far away the next crash might be, leading to sleepless nights for investors of all stripes. There are however proven strategies available for these troubled times. Show More
Using a party as an analogy for the current equity market, we think this ten-year ‘party’ is about to finish. While we don’t know what time the lights are going back on, what we do know is that the music is getting louder and the people are getting crazier. Show More
Scott Haslem started his career in 1991 as an economist working alongside the likes of Glenn Stevens and Bernie Fraser at the RBA. Today he is the Chief Investment Officer of Crestone Wealth Management, a firm that oversees ~$16 billion of assets on behalf of wealthy individuals and not for... Show More
What exactly is a defensive asset? The answer to this depends very much on who you ask. For some people the priority is liquidity so just holding cash might make sense. For others, it means they have very limited performance volatility so perhaps you could consider a term deposit. And... Show More
April nineteen sixty eight. Fifty years ago. It was perhaps the first mainstream introduction to fictional Artificial Intelligence (AI) when we met ‘HAL 9000’, the supercomputer controlling the spacecraft Discovery in Arthur C Clarke and Stanley Kubrick’s confounding sci-fi epic 2001: A Space Odyssey. HAL was an early exercise in... Show More
Once upon a time, the high yield bond market was for speculative companies and investors. Today, the market is where Virgin, Netflix and Hertz raise capital from institutional investors. In this short interview, Vivek Bommi from Neuberger Berman discusses how perception is still catching up with reality in this fast... Show More
In the scramble for customers, some fund managers and superannuation providers are taking on additional risk, investing in a range of assets and deeming them ‘cash’ when clearly they are not. Show More
While absolute valuation has limited use for timing cyclical bull and bear markets, it does provide insights into market sensitivities to challenging (or indeed positive) economic environments. Added to that, relative valuation can be particularly insightful – especially as a key building block for allocating between asset classes and geographies.... Show More
As investors, we are all looking for an edge in earning outsized returns. Here I identify 3 simple portfolio management principles that are essential in any investor’s toolkit, and briefly outline how they can all be brought together into a simple cohesive strategy. Show More
The ‘balanced’ portfolio has become an institution in the financial world. Equities and bonds are the main ingredients and the ‘mix’ determines the categories of balanced funds commonly used. Here we discuss this approach, and look at another option. Show More
Schroders Australia has completed its third broker insights survey, diving into how brokers are investing. Volatility has pushed the need to protect capital to the top of the priority list. Show More
Recently Deloitte Access Economics published “The Corporate Bond Report 2018 – Australia’s growing appetite for corporate bonds” which FIIG Securities commissioned to shine a spotlight on how the corporate bond market performed and the potential it offered to Australian investors. Show More
The investment landscape has changed dramatically in recent years. Deleveraging has become an ongoing theme; central banks have played a significant role in guiding the economy and extreme swings in investor sentiment have all contributed to market volatility. All this will likely continue to impact the reliability of future investment... Show More
This week it's Commodities, specifically an aggregate view of commodities and a look at valuations. Commodities as an asset class rose from relative obscurity to become a popular addition to portfolios by the more innovative asset allocators in the last 10-15 years. Although the "commodities supercycle" perhaps overstated some of... Show More
