It doesn’t tell us what we need to know when investing with that manager.
As an investor, weaving through the large amount of available investment options can be time consuming and stressful. There is a lack of investor understanding about how funds are set up, structured and managed, which can leave people feeling vulnerable when they are trying to wade through the range of opportunities, particularly as some investments are emotively driven. It can feel like Dorothy when she first sees the Wizard of Oz without knowing what is really happening behind the curtain.
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?
Floating rate deposit products are new to the financial advice segment and their appeal is becoming apparent, enabling clients to automatically take advantage of interest rate rises, without having to roll over every 90 days.
While many financial products have come and gone, investment bonds have certainly stood the test of time. They first came onto the market in the early 1980’s and were very popular as a way to invest in a tax effective environment. With the advent of superannuation and other complex structures, investors started to favour alternate investments. But today, with the introduction of superannuation caps, work tests and the need for accessibility to funds, investment bonds are more popular than ever.
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…
The research house have long held an importance position in the Australian retail advice industry, however, emerging pressures may see an end to this trend, writes Greg Bright, publisher of InvestorStrategyNews.com.
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