We are often warned by investment managers that past performance is not an indicator of future returns, but Towers Watson goes even further: past returns are not even a reliable indicator of past returns.
Nobel Laureate Harry Markowitz gave us the foundation of modern portfolio management in 1952, but he is now working on providing online retail financial advice and asset selection according to risk profiles.
Most financial plans focus on the amount of money required for a comfortable retirement, but knowing the variability of that outcome might change your mind on how much is enough.
The Federal Government should run balanced budgets over the economic cycle, otherwise uncertainties build up and costs are imposed because the bills still have to be paid somehow.
A look at history shows government deficit years and fiscal tightening have generally been good years for stockmarket returns. 2013-4 will most probably be a deficit year, as is 2012-3.
Sir Alex Ferguson is the most successful football manager of all time, but for many years he struggled at Manchester United. Here are some leadership lessons he demonstrated as his teams went on to win 38 trophies.
Harry Markowitz, the 1990 Nobel Laureate and Pensions & Investments Magazine’s ‘Man of the Century’, explains his views on risks and returns and how he arrived at his Modern Portfolio Theory and Efficient Frontier.
Two linked factors explain and justify our concern for rank relative to our peers, one largely psychological and sociological, and the other primarily economic. But what are the risks of performance anxiety?
Accountancy practices have been a poor second cousin to financial planning businesses in terms of sale price and merger and acquisition activity. Here’s why that might change soon.
Anyone responsible for product design and pricing in the superannuation industry needs an understanding of the revised Australian Prudential Standards on bank liquidity. Some creative solutions may be needed.
APRA has given a clearer definition of the term ‘financial institution’, and it may be broad enough to catch a wide range of client-authorised activity, including Separately Managed Accounts.
Research now backs up the anecdotal claims that SMSF trustee confidence in the superannuation system is declining. The proposed Council with its independence and long term view will help address this.
The recent superannuation reforms were just tinkering around the edges of Australia’s retirement savings system challenges. We need far more radical policy changes if our nation is to survive its demographic time bomb.
Social impact investing is an emerging new asset class that provides opportunities for investors to generate both a financial and a social return.
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