The above chart shows the 6 month daily correlation between Hedged Global Shares and four Australian bond funds… Tyndall Australian Bond UBS International Bond Macquarie Diversified Fixed Interest Principal Global Strategic Income Fund Each fund is different. Tyndall is invested in high grade Australian bonds, UBS International in high grade global bonds, Macquarie is 60% …
Monthly Archive: August 2009
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Aug 21
World Government Bonds perform best over last 5 years
The above table shows the returns for various subclasses of fixed interest from the perspective of the Australian investor (i.e. in Austrlaian dollars) through to the end of June 2009. As can be seen, the World Government Bond index hedged to Australian dollars has been the winner over the last 3 and 5 years. High …
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Aug 06
Yield Curve looking Good…is it too good?
As the above chart shows, the Australian government yield curve has been steepening ever since the end of last year. This yield curve is a good indicator of the future strength of the AUstralian economy. As it shows, during June of 2008 the curve was negative (i.e. sloping downwards) and worst case scenario, is that …
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Aug 03
Apples and Oranges of Volatility
My latest IFA educational article can be found here. Recently I met with a fund manager who was showing me how his direct property fund had lower volatility than the listed property index. Given the infrequency of direct property valuation, volatility measures, like standard deviation, should probably be ignored. My latest article published in IFA …
Aug 03
Alpha does not equal Outperformance
An article I wrote earlier in the year for IFA magazine can now be found here. Basically the article shows how it is possible to outperform and index but display no skill (or alpha); and vice versa…i.e. underperform an index and show skill (or alpha). Send article as PDF
Aug 03
Another blow for active managers
Following the APRA report from a few weeks ago, late last week Standard and Poors published a paper that wasn’t too flattering of the active side of the Australian funds management industry. The paper can be found here. Their analysis had the following conclusions: Over 5 years, the benchmarks outperformed the majority of active managers …