Watching the market react to economic data is really about watching the human beings that constitute the market react with fear and optimism to normally mixed messages. 2006 is shaping up to be the year of volatility...

Tony Rumble

A week ago, we updated you on what the world is doing with gold, and reported predictions of gold reaching $US500/oz by Christmas. In fact, it's happened much sooner...

Tony Rumble

In a move that can only be taken as a massive victory for hedge funds and their major promoters, the global investment banks, the Australian Stock Exchange has announced changes to the rules requiring disclosure of the identity of brokers behind buy and sell transactions...

Tony Rumble

A recent study out of the US takes a shot at what you may believe about dollar cost averaging, one of the sacred cows of investment…

Deirdre Keown, PortfolioConstruction Forum

Advisers that turned up to last week's FPA Conference on the Gold Coast were treated to a debate that is at the leading edge of a massive turning point in the investment management industry...

Tony Rumble

Emerging markets have been out of favour with mainstream investors since the series of financial shocks in the late 1990s that culminated with the default by Russia on its sovereign bonds in 1997. So what has changed since then, to bring emerging market debt back into favour (with a number of new products being released that provide exposure to emerging market debt)?

Tony Rumble

With the Aussie stock market at or near record highs over the last few months, investors are increasingly confused about what type of equity portfolios they should be designing for their clients. Defensive stocks have made way for a profound switch to cyclicals (with resource stocks predominant). But as global inflation worries raise questions about the longevity and depth of the resource boom, style is again becoming a key direct investing issue...

Tony Rumble

As we took the Global Energy and Commodities Investing Forum around the country, one of the hot discussion points was total return investing and portfolio construction...

Tony Rumble

Last week, Delphi Corp, one of the key players in the US auto parts industry, defaulted on its bond payment obligations. The loss from Delphi has adversely impacted at least two CDOs known to Australian investors: Deutsche Bank's Nexus 3 and Macquarie's Generator Income Notes...

Tony Rumble

Infrastructure funds develop and hold infrastructure assets - which are increasingly becoming available for private sector ownership as Governments privatise public sector assets as part of budget deficit reduction programs...

Tony Rumble

One of the most frequent questions we're asked by advisers considering an IPO for a new listed product is "Will this product list at a discount?" The question applies to ordinary shares as well as listed alternative assets, and listed structured products. No doubt, the concern stems from the rash of listed investment companies (LICs) listed at the end of 2003, some of which continue to trade at a discount to their net asset value today...

Tony Rumble

Dealer groups wishing to differentiate themselves and strive to achieve greater alpha in client’s portfolios face a dilemma. To move "beyond the vanilla," there are a number of practical issues to sort out before properly embarking on an expanded approved list...

Gary Mitchell

As the great Australian icon Norman May used to say, the economic news this week is all about "Gold, Gold, Gold". Sure, Nugget May was talking about our Aussie Olympic athletes, but in the context of the market there's definitely some important guidance here for Aussie investors...

Tony Rumble

Private equity offers the promise of occasional outstanding returns – but with the significant risk that some private equity investments will end with no return. To encourage investment, there are a range of significant tax concessions available for investors accessing private equity through Pooled Development Funds (PDFs)…

Tony Rumble

In each You Asked For It, we ask the public research houses to respond to topical portfolio construction questions of the day. This fortnight, it’s hedge funds. Are they an asset class? Should they be classified as growth investments, defensive, both or neither? Seven research houses responded…

Leeanne Bland

At this week’s PortfolioConstruction Conference, HFA Chief Investment Strategist Jonathan Pain will present a compelling review of the prospects for world equity markets – in fact, he'll present twice, firstly the case for a global equities bull market, and then the contrasting case for a global equities bear market…

Deirdre Keown, PortfolioConstruction Forum

A common question from the many advisers who implement direct equities through model equity portfolios is how to justify putting a client into the underlying shares which may have risen steeply since the inception of the portfolio, or since its last rebalance…

Tony Rumble

Since their introduction to – and initial acceptance by – the Australian financial planning industry, hedge funds have probably not delivered the returns promised. This article explores other reasons why hedge fund returns may have been lower than expected., the market conditions needed to generate returns, the current environment for hedge funds, and the outlook for sector...

Angela Ashton

Thank you for your kind comments, at the International Monetary Conference in Beijing recently, regarding the state of the investment industry and the benefits of investing in skilled managers who actively seek absolute returns through a combination of diversified strategies. I particularly appreciated your comments as follows…

Peter Coates

Hybrids have been successfully issued since the early 1990’s, however, due to recent accounting changes, these types of products are no longer being issued. Their replacement, the Step Up Preference Share, has a problematic investment profile with high levels of equity risk, and is potentially unsuitable for inclusion in the fixed interest portfolio…

Tony Rumble

What is an ETF, what are the key performance and cost differentiators compared to actively managed equity funds, and how can they be integrated into a portfolio?

Tony Rumble

In a core and satellite approach to portfolio construction, some of the benefits of including low cost, index-tracking products such as exchange traded funds (ETFs) in the “core” of a portfolio...

Tony Rumble

Private equity firms understandably advocate the hands-on style that distinguishes them from other traditional portfolio investors. But does this active ownership really produce superior performance, ask McKinsey principal Joachim Heel and director Conor Kehoe ask in an article published in the McKinsey Quarterly

Janene Bone

Global investors are continuing to pour money into emerging market bond funds, with year-to-date inflows passing the US$3 billion mark during the second half of May…

Christine Long

After enjoying strong above-average returns from the Australian sharemarket over the past two calendar years, the Australian equity market provided negative returns in both March and April 2005 – the first time in over two years we’ve seen consecutive months of negative returns. So which fund managers can be expected to outperform in falling markets?

Leeanne Bland

Distressed debt is one asset type beloved of hedge funds. There are four distinct types of distressed debt, and each carries unique risks and rewards, says Mercer Investment Consulting, warning that this event-driven style is not as homogenous as the definition indicates…

Deirdre Keown, PortfolioConstruction Forum

As the numbers of hedge funds on offer increases, the lines between hedge funds and traditional asset managers are fading. More traditional managers are establishing a presence in the market, writes Mercer Investment Consulting in its latest Hedge Funds newsletter…

Leeanne Bland

Rising interest rates and a resurgence in oil prices proved difficult headwinds for Australian superannuation funds in the March quarter, according to research released by Intech today…

Leeanne Bland

In giving evidence to the Parliamentary Joint Committee on Corporations and Financial Services inquiry into Commonwealth Regulation of Property Investment Advice, the FPA expressed its concerns about the lack of effective regulation for property investment advice…

Leeanne Bland

A few years back, Roger Gibson offered a very simple four-part matrix to help advisers determine what they believe about investing. Some commentators are now rethinking one quadrant which they used to reject out of hand...

Bob Veres, Inside Information

Strong financial performance can be directly linked to good corporate responsibility, according to new research by AMP Capital Investors. The research breaks new ground - although extensive research in this area has been carried out in North America and Europe very little has been undertaken in Australia…

Leeanne Bland