|
A hard Brexit | More on withdrawal rates | Magellan
turns 10
Time flies! I can't believe it's 10 years since I
interviewed Hamish Douglass and Chris Mackay as they
launched the Magellan Global Fund and explained
their "edge" and how they planned to grow - watch
the video now and see how prophetic they were.
Then, read Michael
Mauboussin's latest paper about organisation
structure and investment performance - the best
things come in threes, it seems. We also
feature another look at portfolio deconstruction and
"safe" withdrawal rates, including a different,
simple
approach to the common 4% rule. Oxford's Kevin
O'Rourke argues Britain is heading for a "hard" Brexit. And we feature Mint Asset Management's Paul Richardson
explaining at Symposium 2016 why portfolios can
still reach their goals despite negative rates.
All the best for a great weekend's continuing
education - Graham
P.S.
Great presentation by Stephen Jennings at the
New Zealand Initiative last week! You may have read
some coverage. We'll publish the video next week so
you can "attend" it yourself.
|
LATEST... |
|
Markets
Deserting the battle for Britain
The UK is headed
for a "hard" Brexit - not just from the Union, but
from Europe's single market. It will cost the
country dearly.
Kevin O’Rourke, University of Oxford |
Opinion
|
|
Strategies
Inverted withdrawal rates and the sequence of
returns bonus
Decumulation requires a tradeoff between preserving
capital and obtaining income. A very simple "inverted withdraw rate"
approach may be a better approach than the
traditional 4% rule.
John Walton, University of Texas
|
0.50
CE
|
White Paper
|
|
Strategies
Reach portfolio goals despite negative interest
rates
Investors are slowly awakening to the threat that
negative interest rates globally pose to their
goals. Diversified funds need a higher mix of growth
assets and a TAA approach.
Paul Richardson, Mint Asset Management |
0.50
CE |
1 comment
|
Resources
|
|
Investing
Acorn to oak tree in 10 years
It's 10 years since the Forum interviewed Hamish
Douglass and Chris Mackay - as the firm launched the
now behemoth Magellan Global Fund - about why their
investment approach was better...
Hamish Douglass, Magellan Financial Group |
Opinion
|
|
Investing
Form follows function (org structure and investment
results)
New research has found that teams of three portfolio
managers deliver higher gains, adjusted for risk,
than single individuals
or teams of other sizes.
Michael Mauboussin, Credit Suisse
|
White Paper
|
|
Member comments
The Most Important Test to Give Your Fund Manager
We believe (and are testing the hypothesis through
further research sponsored by the US Government)
that decision making and managing risk vs. return
tradeoffs is a "muscle" - the more you exercise it
in the real world, the better you are...
Bernard Del Rey, Capital Preferences |
Comment
Rebalancing and compliance
Interesting article. However, you are correct in
that the challenge with many ideas and theories is
the practical application...
Kevin Wyld, Financial Simplicity |
Comment
Is there scope for using active managers?
Does the use of active managers invalidate modelling
based on broad market or index performance? Yogi
Berra strikes again : in theory active management
could mean the index is irrelevant, but, in
practice, this is rarely the case...
Tim Farrelly, farrelly's |
Comment
|
RECENTLY... |
|
QE and ZIRP have introduced massive distortions?
QE has caused massive investment distortions. Ditto
the ZIRP and NIRP policies of many central banks.
Beware - the chickens are coming home to roost! It
seems plausible, but...
Tim Farrelly, farrelly's |
Opinion
|
|
A comment on BREXIT
The reality is that Brexit will hurt everyone
involved more than was admitted during the campaign.
Investors should expect heightened volatility, not
only of stocks, but even of government bonds.
Dr Woody Brock, SED |
Opinion
|
|
How do you measure which retirement income strategy
is best?
The "best" retirement income strategy may be very
different depending on whether you measure based on
wealth, spending, probabilities of success,
magnitudes of failure, or utility functions that
weigh both the upside and downside risks.
Michael Kitces, Pinnacle Advisory Group
|
0.50
CE
| |
Research
|
|
Ride the cycle but structural weakness will come to
matter more
Investors need to be wary that without much needed
reform, structural weaknesses in many advanced and
developing economies will be the ultimate
determinant of longer-term returns.
Bevan Graham, AMP Capital NZ
|
0.50 CE
|
1 comment
|
Resources
* Rated
in the top 10 presentations by Symposium 2016
delegates
|
|
US elections have been good for long-term investors
As the battle for the White House heats up,
candidates are drawing attention to the challenges
facing the nation. But whatever the outcome of the
upcoming US Presidential election, we believe the
impact on markets will be about the same.
Capital Group |
Opinion
|
|
Member comments
Can advisers compete with Robo's?
In
theory, no. Fortunately, Yogi Berra's law applies.
"In theory, there is no difference between theory and
practice. In practice, there is."
Tim Farrelly, farrelly's |
Comment
Retirement resources that matter: Q+A
I'm not advocating that financial planners try to be
marriage counselors, doctors or psychologists but
there are benefits to understanding the whole client...
Dr Joanne Earl, Flinders University |
Comment
Cashflows - in and out
Thanks Michael, interesting article. However, you are
correct in that the challenge with many ideas and
theories is the practical application...
Mark Carroll, Morvest Financial Planning |
Comment
Rebalancing Software
Mark, the implementational challenges of rebalancing
are something that - fortunately - are very
conducive to technology solutions...
Michael Kitces, Pinnacle Advisory Group |
Comment
|
|
Keep up to
date - follow us @PortfolioForum
There's no need to wait until our weekly Forum
Fodder email to know what's new with
PortfolioConstruction Forum.
Just follow us on
Twitter to hear as soon as we release new articles
on
PortfolioConstruction.com.au and when
registration opens for our onstage programs.
|
|
Connect with me on LinkedIn
We also let my LinkedIn network know as soon as we
release new articles on
PortfolioConstruction.com.au
and when registration opens for our live programs.
If LinkedIn is more your thing than Twitter,
I'd
welcome you connecting. And of course, I'd welcome
having a offline direct conversation with you any
time.
|