Two court cases have laid the blame for poor SMSF documentation and investments at the feet of auditors. It’s not a ‘tick and flick’ exercise and there are lessons for SMSF trustees and professionals.
Tag Archives | investment strategy
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.
The recent fall in stock market prices worries many investors, but it is a normal part of exposure to shares. Nervous Investors need to understand how they think, set a plan and stick to it.
The financial concerns of those in or close to retirement are focussed on health and housing. Lower interest rates, rising healthcare costs and lifespan uncertainty legitimately compound those concerns.
The SMSF of a person who has lost mental capacity faces multiple risks including the fund’s control falling into wrong hands. These risks can be guarded against with a proper strategy in advance.
A lower volatility portfolio may be more aligned to a pension’s investment objectives, and a move from accumulation to pension is the time to review how superannuation is allocated.
Boom-bust cycles are inevitable and at some point, there will be a market correction although different to the GFC. Many of the signs of excess that normally precede severe and prolonged bear markets are not present yet.
Not all ETFs are created equally, and it’s worth looking under the bonnet. Among many possible differences, the domicile of the fund can have broader implications.
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?
The concept of thematics is gaining traction with investors as a way of tailoring a portfolio to suit the trends that resonate at an individual level, rather than accepting everything contained in an index.
Making a passive investment requires an active decision, and since index-based funds are structured using market prices, they build in influences of the active factor of price momentum.
It’s difficult for investors to find active fund managers that consistently outperform the market over multiple periods, and the claim that active managers do better in falling markets also lacks recent evidence.
The investment landscape might have changed dramatically over the last 25 years, but investors can still rely on many of the same principles from the past to make sound investment decisions in the present.
Are there investment opportunities out there that only small funds can capitalise on? Being small has some advantages over larger funds which can be used to stand out in an overcrowded industry.