The Royal Commission focusses heavily on poor incentives amid a sea of damnation and exhaustively-documented case studies, but does not provide answers, especially on the vexed issue of best interests.
Tag Archives | risk management
Alternative assets can enhance retirement portfolios through diversification, but their use requires skilled navigation and a willingness to compromise on liquidity to allow assets to realise their long-term potential.
Not all business use their capital in the most productive way, and investors need to recognise when companies are struggling to generate cash flows to pay off debts when due.
The benefit of setting investment objectives is most apparent in times of market turmoil, but at any time, defining a preference for maximum returns or minimum risk will help to achieve the right outcome.
In contrast to the way institutions make investment decisions, family offices and high net worth investors display high levels of engagement and often have their unique non-financial objectives to satisfy.
Howard Marks is best known in the global investment community for his ‘Oaktree Memos’ to clients which detail investment strategies and economic insights. Here are some extracts from his latest memo, Risk Revisited Again.
Part 2 focusses on the criticisms that are often levelled at hedge funds and how to manage these disadvantages to your level of tolerance. The challenge for the hedge fund industry is to deliver more retail-targetted products.
Investing in hedge funds is one of the more polarising topics in the investment world, with strongly-held views at each end of the spectrum. Part 1 of this two-part series looks at the advantages of these ‘alternatives’.
It’s too easy to think the future will be a simple extrapolation of the recent past. Just because inflation has been well under control in recent years doesn’t mean we should ignore the inflation risks.
SMSFs take on more risk than they probably realise by investing assets mostly in Australian cash and equities. Diversifying investments within a risk tolerance could reduce losses if local markets sour.
The FSI makes some important recommendations which would improve the super industry if implemented. However, the trade-off between return and risk is largely left untouched – it’s an important opportunity missed.
One benefit of ETFs for investors is their tradability – being able to buy or sell at any time through the ASX just like an ordinary share. But this leads many investors to mistakenly evaluate their liquidity in the same way.
Road cycling has an enthusiastic following among the corporate set, particularly within the investment community. Investing and cycling have much in common, especially after sitting in the saddle for a few days.
Following from the article “Our industry has a problem”, Cuffelinks interviewed Tim Hodgson, the author of the study into investment industry intermediaries. He doesn’t like much of what he sees.
While diversification makes sense in theory, how did it hold up during the global financial crisis? Follow the crisis through the lens of correlations and diversification.
Follow diversification’s past, present and future in this three-part series. Part one takes us from Shakespeare’s Merchant of Venice to the classic strategic asset allocation pie chart used throughout the investing world today.