Category Archive: Inflation Linked Bonds

Jun 20

Market Inflation Expectations…lower than RBA

The above chart shows the yields for Australian Government Bonds, both nominal bonds and indexed bonds, as at the end of last week (although you can adjust the pricing date to any trading day of 2016). A simple way to determine the market’s inflation expectations over different timeframes is to simply subtract the difference. If …

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Aug 26

Real Return funds…lacking real-ity?

What a fascinating investment world its been over the past few months. We’ve had concerns about Greece exiting the Euro, commodity price crashes, a Chinese sharemarket crash and now some of the biggest developed economy sharemarket declines since the dark days of the GFC. Volatility has been somewhat benign for a long time thanks to …

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Aug 28

What is the Risk Free asset?

This question is probably only important when establishing a base-line return expectation before we accept various type of investment risk. I guess we all know that technically there is no such thing as a Risk Free Asset but generally speaking it is widely believed that Cash is the risk free asset. Whilst I’m prepared to …

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May 20

Being a millionaire may not be enough for a comfortable retirement

Source: Delta Research & Advisory Pty Ltd The above chart shows the probability of running out of funds in retirement for someone who retires with $1,000,000 in today’s dollar and draws $55,080 each year (ASFA Retirement Standard for a comfortable retirement for a couple), growing at 3% inflation. It is assumed the funds are invested …

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Apr 16

Retirement Income Portfolios – poorly understood

One of the debates in the financial services media has been around the investment strategy of superannuation funds and whether they are holding too many equities. In the camp of too many equities is former Head of Treasury, Ken Henry, nd former Chairman of the Future Fund, David Murray; and opposing views have typically been …

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Jul 25

A Few Retirement Income Articles

I haven’t written too much on retirement income recently, well just a little bit. Anyway, before I write a whole lot more (my day job is currently focused on this area) I thought I’d post a couple of my older retirement income articles for those that may be interested…also can’t help but notice that Jeremy …

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Jun 12

Managing Inflation Risk…advisers have it wrong

Source: van Eyk Research The above poll was taken by van Eyk Research on their subscription website. In terms of the sample, it is large (848 responses) so may be statistically representative of van Eyk subscribers whom I can only assume is financial advisers, researchers, and maybe fund managers. As shown almost 1 in 2 …

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