Allocation Switch is an asset allocation strategy that follows the profits instead of following the market, which arguably helps limit downside in the event of a market crash.
When markets deliver lower returns, investors need to save more, learn about investments and stay the course to achieve their retirement goals. Diversification is an effective way to weather uncertain times.
Subordinated debt issues are a less risky investment than capital notes and hybrids, but each transaction is different and not riskless. The current issue of NAB Subordinated Notes is just one example.
Almost every day, there is a new and exciting fintech announcement of the next big thing. Some checks improve the chances of finding the financial services winners.
When combining family and financial matters, what starts out well can turn ugly. Not only should such dealings be properly documented, but also conducted in strict accordance with those documents.
According to S&P, the majority of active managers continue to underperform their benchmarks. However there are sectors where active styles perform well, and many managers justify their fees.
Infrastructure assets are viewed as ‘bond proxies’ because they are supposed to have predictable cash flows, but investors should delve deeper into the regulatory risks, especially in a post-Brexit, post-Trump world.
We are seeing rapid one-day movements in some large stocks of 10% to 20%, especially those that were ‘priced for perfection’. What is causing this, and does it present a threat or an opportunity in a portfolio?
The ‘lower for longer’ mantra has become common, but investors can assess current market conditions to achieve decent returns after inflation, without taking on extreme levels of risk.
There are many ways to hedge against volatility, but often at a cost to the overall return of the portfolio. At what point is a smooth journey worth the impact on the destination?
The modern investor has access to many products but the level of financial literacy struggles to keep pace leading to confusion and conflicted goals. This study shows the types of conversations investors should have with advisers.
Instead of just looking at the historical returns of a Listed Investment Company (LIC), investors should also factor in risk measures such as beta, standard deviation and the Sharpe Ratio when assessing a LIC.
Almost every hybrid has a unique structure, and some of the conversion terms, especially following a ‘loss absorption’ event, are as ugly as a cane toad. Billions have been issued recently as investors search for income.