News

Why have we seen such under performance in an industry which charges fees to manage more than 500 strategies (many managers have multiple branded strategies), against an index with 200 stocks?

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Aust 170819

Introducing a code of ethics, minimum educational standards, and standardised continuing professional development, FASEA is a positive for the advice industry in its intent. It supports what the public, regulators and government is demanding: delivery of a homogenous, well-regulated and qualified industry, one where the interests of clients are paramount.

When regulation is introduced it sometimes need to be tweaked to be sensible at the same time continuing to draw a line on an outcome that is necessary.

Adjusting the timelines for the completion of the FASEA requirements is sensible in order to maintain the strength of our industry.

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Aust 270719

A great article from James Dunn in the AFR. We believe you augment returns through ESG disciplines. If you construct a portfolio on these principles, you are mitigating risk, and therefore, by mitigating risk, you should be enhancing returns.

Increasingly, a focus on ESG/SRI will be a key factor in picking up on, and minimising, financial risks to companies, and it is ultimately why ESG/SRI will become a mainstream investment methodology.

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AFR 250719

We have written a lot over our concerns on LICs through The Australian over the years and as recently as a month ago (refer).

This is a very good article by AFR journalist John Kehoe looking at the huge growth in LICs. The demand for these products is being exacerbated by a regulatory “loophole” being exploited by some advisers who are being paid lucrative commissions to sell risky listed investment companies to retail investors and self-managed superannuation funds.

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AFR 200719

Over the past four years, I have watched as investing in environmental, social and governance (ESG) as a strategy has gone from being a niche issue to one that now attracts high levels of interest.

Four years ago, the hot topic in the northern hemisphere was funds management fees, or MERs. I would say that issue took three years to become an issue of the same magnitude in Australia.

I have no doubt ESG will ­become as big an issue in Australia.

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Aust 130719

It’s all about one thing at the moment…Interest Rates!

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Aust 060719

US financial investment publication Barron’s and The Australian’s business magazine The Deal present Australia’s comprehensive list of financial advisers. The Top 50 Financial Advisers in Australia is based on an exhaustive, national survey. This list offers clients and advisers a unique guide to the leading practitioners in the sector. This package is a joint project between The Australian and Barron’s.

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The Australian list is compiled in partnership with the New-York based Barron’s investment publication which has for many years produced the top advisers list for the US.

Regular contributors to The Australian’s Wealth section, such as Will Hamilton of Hamilton Wealth Management and Douglas Turek of Professional Wealth, who are also well-known investment commentators, have become veterans of the list.

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Aust 210619

Active ETFs don’t allow for different share classes within a single product making fee discounts harder to process.

www.financialstandard.com.au 

17th June 2019, Volume 17 Number 11

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FS 200619

With the Reserve Bank cutting the official cash rate by 25 basis points to 1.25 per cent, and another interest rate cut looking ­imminent, asset allocation again becomes a very important focus. The aim is to balance risk with income and capital appreciation.

As another aspect of the yield story, the Future Fund, together with many other industry funds, holds high levels of illiquid investments — in many cases more than 30 per cent. (Illiquidity means there may be difficulty in buying or selling the asset quickly). There is no doubt this has had a positive effect on returns.

I have also been a strong proponent of illiquid investments for the right clients. They are those who both understand what they are investing in, and who also have tolerance for illiquid investments. (We have worked closely with our asset allocation consultants, Heuristic Investment Services, to ensure we have con­structed asset allocation bands that ensure risk and return is ­balanced.)

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Aust 180619