Cash is often seen as the residual, ‘uninvested’ part of a diversified portfolio, but it should form a prudent and wise amount of ballast, especially when enhanced cash improves returns.
Tag Archives | asset allocation
Inevitably, with each new development in this cycle, investors as what they can do to prepare for a recession. Our answer: revisit asset allocation, diversify, and review active risks in your portfolio.
A global asset allocator is positioned defensively to preserve the wealth of his clients. He has some strong comments on stocks, the investment industry and avoiding the pressures of short termism.
Nobody revalues their own home each day in the way they revalue listed equities, but does that mean the value is constant? The daily unit price is calculated in some super funds using unlisted asset valuations.
Modelling different and complex objectives in an asset allocation is difficult because the goals are often contradictory, but a new technique puts a risk score on each possible strategy.
Government bonds do not feature in most retail portfolios, but they carry defensive qualities with income to offset the higher risks in other asset allocations. Are they always worth including?
In some markets, the sheer volume of money flows into both good and bad companies, but when tougher conditions inevitably come, it’s the quality earnings that sustain.
There are enough negative factors in play to suggest great caution with asset allocation in portfolios, as a wonderful run of results for investors came to an end in 2018. Here are four common factors in market collapses.
An efficient diversified portfolio might include unfamiliar assets with short-term volatility. It’s important to focus on a comfort level to attain the long-term benefits of diversification in a portfolio.
APRA’s letter to super funds highlights concerns about ‘cash’ investments. A lack of understanding might haunt investors when the next downturn comes as too many people forsake protection for yield.
SMSFs have long lagged institutional superannuation funds in allocating to global equities, but SMSFs trustees increasingly realise the best opportunities lie overseas, and they use managed funds as the vehicle.
It’s surprising how different Australian superannuation is to other developed countries, when asset management is a global industry. Why are we different and which counties have it right?
The value of the age pension as a life-long annuity should be taken into account when choosing the optimal asset allocation for retirement investments to avoid being overweight defensive assets.
A deep dive beneath the headline numbers shows exactly which funds and shares SMSFs invest in, confirming that the average allocation to global shares is higher than many claim.
Sticking to a value-driven investment strategy is difficult in a market fuelled by hope and buoyant expectations. At what point should investors forego the equity market rally to prepare for a possible correction?
The 2016 Investment Trends High Net Worth Investor Report analyses the use of financial advice and a surprisingly steady asset allocation despite changing market forces.