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.
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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.
Family offices and institutional asset allocators select their fund managers based on different factors, and it influences the quality and outcomes of their decisions.
A recent analysis of SMSF asset allocation shows a movement away from direct equities as trustees struggle to find value in the large caps, and the continuing popularity of cash despite low rates.
Cash gives options over future lower prices, and it avoids the risk of permanent capital loss. But it comes with another risk, the loss of purchasing power, and is not a good long-term investment.
The method chosen to determine the amount of pension payments from superannuation should influence the allocation towards the volatility of growth or income-based assets.
It’s a dilemma for fund managers to make divestment decisions on behalf of investors based on philosophical grounds. Does it reflect the investors’ beliefs and will it adversely impact returns?