Author's details

Date registered: January 28, 2012

Latest posts

  1. A Few Investment Selection Faux Pas — May 31, 2018
  2. From Asset Allocation to Risk Allocation — April 27, 2018
  3. Diversification … clearing up what it is and what it isn’t — March 14, 2018
  4. Designing the rules of the game … Investment Policy Statement (IPS) — January 14, 2018
  5. Beware the Benchmark Hugger … it might be you? — August 29, 2017

Most commented posts

  1. The disappearing credit spread…US now at pre-GFC levels — 6 comments
  2. A Must Read on “The Economic State of Australia” — 4 comments
  3. ASX200 to go through 5000!!! — 4 comments
  4. Asset Allocation that considers Asset Weighted Returns — 3 comments
  5. Euro Breakup…very painful indeed — 3 comments

Author's posts listings

May 31

A Few Investment Selection Faux Pas

Over the years having worked in consulting and research I have been sent countless portfolios for opinion. Virtually all portfolios have followed a pre-defined asset allocation aligned to a specific risk profile but occasionally that is where the alignment ends. This is because the investments selected bear little to no relationship with their desired characteristics …

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Apr 27

From Asset Allocation to Risk Allocation

Background After capital market forecasts and assessing investor objectives, the current method for portfolio construction starts with the asset allocation decision followed by investment selection. In the Australian financial planning industry, it widely accepted that the asset allocation decision is responsible for most of the portfolio performance variability, and it is, rightly or wrongly, regarded …

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Mar 14

Diversification … clearing up what it is and what it isn’t

Diversification is one of the central tenets of investment management and fundamental beliefs across the global financial planning industry. Its validity was set in stone by Harry Markowitz in his PhD dissertation and 1952 Journal of Finance article, Portfolio Selection, which demonstrated the effects of combining uncorrelated assets … i.e. improvement in the portfolio’s return …

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Jan 14

Designing the rules of the game … Investment Policy Statement (IPS)

The following article was published by Professional planner Magazine a couple of months ago and whilst can be found on their website by clicking here … the original article follows. Background One of the biggest trends in the financial planning today is the shift towards managed accounts. This is primarily an exercise in increasing efficiencies …

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Aug 29

Beware the Benchmark Hugger … it might be you?

Background For quite a few years now, many commentators and researchers have criticized active strategies that charge active fees to receive benchmark-like returns. If a portfolio looks a lot like the benchmark it is trying to outperform, it doesn’t mean there won’t be outperformance, but after taking fees into consideration it is much more difficult. …

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Aug 23

Good benchmarks, Bad benchmarks … and how to choose the right one

The following article was first published in the August Professional Planner magazine and can also be found on their website by clicking here … otherwise just read on … The management guru, Peter Drucker, is attributed with the phrase, “you can’t manage what you don’t measure” and whilst we know that is not completely true, …

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Aug 07

Four Stages of Investment Analysis

Professional Planner magazine published the following in their June Magazine and also on their website … you can also click here. Otherwise … read on … On the first Friday in May, the Chief Investment Officer of the Future Fund, Raphael Arndt, spoke about how they are refining their approach to their listed equities investment …

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Feb 13

Economic Growth & Sharemarket Returns … looking for relationships

Background According to (Elroy Dimson, 2010) the “conventional view Is that, over the long run, corporate earnings will constitute a roughly constant share of national income, and so dividends out to grow at a similar rate to the overall economy. This suggests that fast-growing economies will experience higher growth in real dividends, and hence higher …

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Nov 01

Melbourne Cup … Macquarie Quants take it up a notch

After a few tough years the Macquarie quant team have decided to upgrade their quantitative models. Looks like they’ve gone to a lot of effort so if they get it wrong again it might be quite fascinating to see how they respond. Anyway, for those who are interested … please click here for their quant-based …

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Oct 29

Global Economic Data…interactive chart

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