The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. With growth likely to be close to trend, inflation close to target and the global outlook remaining somewhat uncertain, the Board judged this setting of monetary policy to be appropriate. This was the final …
Category Archive: Investment Strategy
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Aug 02
A Need for Style Indices and/or more Style Biased Passive Funds
According to Morningstar, the best performing Australian equities fund over the last 10 years is the Dimensional Australia Value Trust. In this competition of winners, where only the biggest or best have survived, the Dimensional fund has outperformed 44 other funds, including those value giants, Perpetual, Tyndall and Investors Mutual and and different styled behemoths …
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Jul 20
Great to know these guys are paid a fortune
Strategists June 2011 forecasts for the S&P/ASX 200 Deutsche Bank 6250 UBS 5800 Citigroup 5500 Goldman Sachs 5375 Macquarie 5068 JP Morgan 5000 Morgan Stanley 5027* Credit Suisse 5000* Merrill Lynch 4500* Average 5302 points Source: AFR 1 July 2010. *December 2010 forecasts – no June 11 forecasts provided With such variance amongst the so-called …
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Jul 20
Latest Article for Publication – Guaranteeing Investment Success
I have just submitted an article, on behalf of my employer, to the Australian version of the Journal of Financial Advice. Its a fairly simple message….advisers could better look after their client’s financial needs and goals by increasing their focus on their client’s cash flow needs as opposed to the focus on investment strategy. I know …
Jun 22
A look at risks in pension portfolios
I know I haven’t been posting too much lately and I know with this post I am just repeating myself. My latest article for IFA magazine was published this week and for those who don’t subscribe and are interested in reading it…it can be found here. More posts with some interesting analysis to follow! …
May 28
A simple look at pension portfolio construction
An article that should appear in IFA magazine over the coming weeks the article can be found here. Basically, its a simple look at how traditional investment risks are exacerbated by the pension drawdown situation and it has a simple recommendation to combat these risks (timing, volatility, and high inflation)…yep…inflation linked annuities. Send article …
Apr 16
Is it over for Agribusiness MIS?
Without a doubt, this has been the worst investment sector I have ever seen. Apart from the overall dismal performance track record of this sector, a few years ago now we had the disaster of Saxby Bridge and their agri-boiler room sales tactics, and in the last 12 months we’ve had the collapse of Timbercorp, Great Southern and …
Mar 25
APRA Releases June 09 Super Performance
APRA yesterday released their June 2009 performance analysis of super funds and no surprises to see the Industry Super Fund MTAA at the bottom of the pile. with a return of -23.3%. MTAA was the previous number one fund over numerous years but with significant exposure to unlisted asset classes of private equity, property, and …
Mar 21
Asset bubbles
There has been a lot of talk about asset bubbles around the world despite the Global Financial Crisis still being with us. I thought I’d provide a list off the top of my head and perhaps this represents a list of where most downside investment risk resides… Australian Residential Property…see Business Spectator article here Gold…see …
Jul 08
Mutual Fund Theorem – Ignored by most financial advisers
According to John Campbell, Professor of Finance at Harvard, “academic finance has had a remarkable impact on many financial services. Yet, financial planners offering portfolio advice to long-term investors have received curiously little guidance from academic financial economists”. A case in point is the Mutual Fund Theorem, which was developed by Nobel Laureate, James Tobin …