A fundamental consideration in portfolio construction is to assess how a portfolio’s constituent assets interact with each other and contribute to the portfolio as a whole. Ideally, the mix of assets will allow the portfolio to weather a variety of market conditions in meeting its investment objectives.
Australians hold within their portfolios less than half as many bond allocations as their OECD peers. This proportion is even smaller – in the low single digits – for Australian self-managed super fund portfolios. Have we missed something? Or are our investment needs simply different to the rest of the world’s?
With cash rates at historical lows, investors continue the hunt for yield investments and has seen a lot of capital flowing into prime office, retail and industrial assets in the major markets. Investors are being attracted by the secure income of these assets, underpinned by long-term leases to quality tenants.
Focusing on traditional valuation measures such as PE or PB ratios may be a thing of the past, writes Damien McIntyre, director and head of retail distribution at Grant Samuel Funds Management. To produce superior risk-adjusted returns for clients, advisers need to turn their attention towards…
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