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Allocating to resources,
populism, investing on demographics and founders, &
active success
Tim kicks off Fodder
with an in-depth look at what allocation is
warranted to resources in an Australian equities
portfolio (less than the market cap). Dr Oliver
Hartwich warns of the consequences of mainsteam
politicians now resorting to populism ('if you can't
beat them...'). Watch
the top-10 rated Conference presentation by Fidelity
International's Alva Devoy on demographic layering
of equity investment decisions (and earn 0.50 CE
hours). India Avenue Investments' Mugunthan Siva
shows that companies led by founders are more likely
to outperform. And finally, Epoch Investment
Partners' Bill Priest explains the three key
ingredients to his long (50+ years) successful
active management track record.
All the best for a great weekend's continuing
education - Graham
P.S.
Mark your diary! Markets Summit 14 Feb 2017 &
Finology Summit 15 Feb 2017 - the winds of change.
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LATEST... |
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Markets/Strategies
How much should we have in resource stocks?
The Australian sharemarket’s high weight to resource
stocks is an accident of history and geography. A
lower than market cap weight to resource stocks in
portfolios seems much more sensible.
Tim Farrelly, farrelly's
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Research
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Markets
Wanted: A counter-populism strategy
The IMF is right to warn that populism poses a
serious threat to the global economy. What is really
worrying is It is no longer only populists of Donald
Trump's ilk who are delivering it.
Oliver Hartwich, The New Zealand Initiative
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Opinion
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Markets/Investing
Demographics does not mean dull
Demographic trends give a solid basis from which to
forecast beyond the usual two-year time horizon -
and demographic layering of equity investment decisions
can be a powerful structural growth tool as well as
a strong risk mitigator.
Alva Devoy, Fidelity International | 0.50 CE
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Resources
* Rated
in the top 10 presentations by Conference 2016
delegates
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Investing
Understanding "founder's mentality" to generate
outperformance
Only 1 in 10 listed companies globally achieved
sustainable, profitable growth over the decade. A
disproportionate number had a founder still running
the firm or who remains on the Board.
Mugunthan Siva, India Avenue Investment Management
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Opinion
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Investing
Active managers require three ingredients for
success
Active fund groups with the right combination of
culture, technology and philosophy enable investors
to protect and grow their capital in a complex
world.
Bill Priest, Epoch Investment Partners |
Resources
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Comment
Not sure I'm in the tent
If the goal of retirement is to live off most of
your wealth and avoid wastage... aren't you
restarting retiring every year and wanting to spend
the most you can? Hence it's perhaps not a zone you're
passing in and out of.
Doug Turek, Professional Wealth
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Comment
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RECENTLY... |
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Philosophy/Finology
This is not the time to stop thinking
While parts of the asset management industry appear
to be dumbing down, we must continue to educate
individuals on the differences between investment
and speculation.
Hamish Douglass, Magellan Financial Group |
Resources
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Markets
Forecasting US recessions - what works and what
doesn't
Broad analysis of generally effective indicators of
US recessions leads to the conclusion that recession
risks in the US are clearly continuing to rise. A
wide range of indicators confirm the message
although some doubts remain.
Chris Watling, Longview Economics
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Research
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Strategies
Using a bond tent to navigate the retirement danger
zone
Perhaps the best way to manage sequence of return
risk in the years leading up to retirement and
thereafter is simply to build up and then use a
reserve of bonds to weather the storm.
Michael Kitces, Pinnacle Advisory Group
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1 comment
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Research
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Strategies
Manager benchmarking is a pox on both investors and
markets
It seems sensible to make investment managers
accountable by requiring them to perform relative to
a benchmark. But this kind of motivation has a
perverse effect.
Ron Bird, University of Technology Sydney | 0.50 CE
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Resources
* Rated
in the top 10 presentations by Conference 2016
delegates
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Markets/Investing
Do you own enough global small caps?
A satellite allocation to global small caps can
increase portfolio efficiency over the long term.
Lazard Asset Management
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White Paper
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Not their fault
Surely we can't blame central banks for the lack of
fiscal stimulus?
Tim Farrelly, farrelly's
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Comment
The failure to understand rebalancing
Of course, to rebalance to the same mix one must
sell relative winners since last rebalancing and buy
relative losers. In any case, I'm not saying there's
something wrong with rebalancing...
Michael Edesess, EDHEC-Risk Institute
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Comment
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