With the industry upheaval following the global financial crisis (GFC), increasing fee pressures and new legislation, multi-manager funds have evolved for a new reality and advisers are taking a fresh look. For fund managers now there is a greater focus on new investment strategies and absolute returns that meet the clients’ objective.
Australian government and corporate bonds are a significantly underutilised investment vehicle within the Australian financial advice industry. There are considerable opportunities to increase their use, but investors need to better understand the risks associated with fixed income investing before they can go down this path with confidence
The fractional property investing model gives you the tools to offer your clients all the benefits of a prudent investment strategy within the property asset class with a reasonable acquisition cost and ongoing holding costs.
The web, regulation and our increasingly self-directed consumer market have forced the advice industry to evolve or die. As a result, the quintessential “risky” or risk adviser is being replaced by a new, savvier species – the Risk Professional. And they know that a risk discussion that goes deeper than just insurance is key to their survival.
The long-term case for investing in emerging markets is well established and these markets still offer attractive returns. However, emerging market investing can be a volatile experience. Emerging market equities have climbed in the last two decades, but not without going through periods of sharp decline.
As of July 31, the current ASX bull market had been running for 784 days. Volatility had almost subsided and that twitch most people developed during the GFC had finally disappeared. Consistent good market returns had made some people excited. Other people started becoming extremely nervous.
It’s almost impossible to consider investing in an asset class without touching on the subject and relative merits of active versus passive products. Ultimately, there is no ‘right’ answer, as it will depend on each investor’s own circumstances.
There is no comprehensive data available in respect of asset allocation for the whole Australian superannuation industry.
However for default superannuation funds, default investment strategies have consistently had about half of the assets invested in equities with about 10 per cent invested in property.
La Trobe Financial’s Christopher Andrews discusses why sequencing risk is set to become the biggest hurdle faced by Australian retirees
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