1. Trend to global investing still has much further to go

    Recently, I attended the Eureka Report Around the World of Investing Forum. The overwhelming impression was that global investing is very new to many Australians.

    Dominic McCormick | 05-12-14 | 1 comment | More
  2. A better class of bubble

    Only the most die-hard peak-oil proponents, or other gold-bugs, will fail to acknowledge that the commodity bubble has burst. Is it a positive, or negative, for financial markets?

    Louis-Vincent Gave, GaveKal | 04-12-14 | More
  3. Lessons form the last 40 yrs

    Looking back over the last 40 years, it is clear that, in the next 20 years, successful asset owners and managers are going to listen to Einstein and stop making things too simple.

    Alan Brown | 03-12-14 | More
  4. Does a diversification strategy fit with a planner's fiduciary duty?

    It is not beyond the realms of possibility that the "prudent person" approach to playing it as safe as possible in portfolio construction might undergo a significant shift.

    Tony Vidler, Strictly Business | 02-12-14 | More
  5. The return of currency wars

    The right policies are the opposite of those pursued by the world's major economies. No wonder global growth keeps disappointing. In a sense, we are all Japanese now.

    Nouriel Roubini | 01-12-14 | More
  6. Evaluating active managers

    Statistics rarely tell the story clearly. With trial and error, I found that looking at three dimensions of performance assisted my interpretation.

    Don Ezra, Russell Investments | 27-11-14 | More
  7. Bad yen falling

    Japan is not going to stop QE next year or the year after or the year after that. This is not Zimbabwe printing money. Japan is important to the global economy - what they do affects everything.

    John Mauldin, Mauldin Economics | 26-11-14 | More
  8. Japan's election and the yen

    By calling an election now, Abe is betting that a further big fall in the yen - and a consequent further rise in the Nikkei - is no certainty. He may well be right.

    Louis-Vincent Gave, GaveKal | 25-11-14 | More
  9. The return of the US dollar

    The US dollar rally could contribute to the "rebalancing" that has long eluded the world economy. But that is far from guaranteed given the related risks of financial instability.

    Mohamed El-Erian | 24-11-14 | More
  10. Yin & Yang of retirement income

    This white paper serves up a retirement income planning "buffet" - reviewing the two main opposing philosophies and the range of strategies that span the divide.

    Angela Ashton, PortfolioConstruction Forum | 21-11-14 | 2 comments | More
  11. Are low-vol stocks over crowded?

    Ten years ago, hardly anyone talked about low-volatility investing. Now there's growing concern it is becoming an overcrowded trade. There are four arguments against this.

    David Blitz & Pim van Vliet, Robeco | 20-11-14 | More
  12. Academy Spring Seminar 2014 - Resources Kit

    PortfolioConstruction Forum Academy Spring Seminar 2014 features three sessions. This Resources Kit contains the materials for preparing for the Seminar. After the Seminar, it will also contain the presentations for each session.

    19-11-14 | 44 comments | More
  13. Now you can, should you?

    The world's biggest inaccessible stock market is finally opening to foreigners. Those with strong convictions about the rise of the Chinese consumer may want to take a hard look.

    Thomas Gatley, GaveKal | 18-11-14 | More
  14. China A shares emerging?

    Despite strong returns, it's still hard for investors to think positively about China A shares as an investment. The key is to envisage what the world will look like in 10 to 15 years.

    Dominic McCormick | 17-11-14 | 3 comments | More
  15. Revisiting sequence of returns risk

    In managing sequence of returns risk, we may not be giving simple rebalancing nearly the credit it deserves to accomplish similar or better than more complex approaches.

    Michael Kitces | 13-11-14 | 0.75 CE | 1 comment | More
  16. Gridlock itself is not the problem

    Gridlock may be perfectly acceptable in Washington these days - but Europe, like Japan, now badly needs strong political leadership.

    Anatole Kaletsky | 12-11-14 | More
  17. Why are bond yields so low?

    The answer seems obvious. But more complicated forces are at work that have reduced real interest rates far below historic norms and may keep them very low for many years.

    Robert Gay | 11-11-14 | More
  18. IS is irrelevant - Libya is relevant

    The media continues to obsess about IS - but the far more investment-relevant development in the Middle East is the sudden return of Libyan crude to the market.

    Marko Papic, BCA Research | 10-11-14 | More
  19. Celebrity central bankers

    There are good reasons why central bankers receive so much media. But the bubble around their pronouncements grossly exaggerates their economic significance.

    Kenneth Rogoff | 10-11-14 | More
  20. Is this why clients question fees?

    A recent survey found "an alarming 60 percent of clients did not know or were unable to answer if they were on track to meet their defined goals". Can yours?

    Tony Vidler, Strictly Business | 07-11-14 | More
  21. Low beta anomaly - mispricing or risk?

    I don't dispute low vol stocks outperform highly vol stocks. But volatility does not explain all of an asset's risk.

    Michael Furey | 07-11-14 | 1 comment | More
  22. Taking a gamble with negative interest rates

    The taboo that savers have to be compensated for handing money to a financial institution has been broken, with the ECB's negative rates finally being passed on to retail clients.

    Oliver Hartwich, The New Zealand Initiative | 06-11-14 | More
  23. Deflation: Boom Or bust?

    It has been my contention for a while that capitalism is returning to its 19th century deflationary roots. Indeed, the evidence has become overwhelming.

    Charles Gave, GaveKal | 05-11-14 | More
  24. Single-engine global economy

    The global economy is like a jetliner that needs all of its engines operational to take off. Unfortunately, only one of its four engines is functioning properly.

    Nouriel Roubini | 03-11-14 | More
  25. 4 takeouts from the recent volatility

    Last week's volatility surprised many. How should portfolios be positioned? And what does this recent bout of volatility tell us about the economy and financial markets?

    Russ Koesterich, BlackRock | 29-10-14 | More
  26. Sharpe on retirement income planning

    One of the originators of CAPM, Sharpe was awarded the Nobel Prize in economics. I sat down with him to discuss retirement income planning.

    Robert Huebscher, Advisor Perspectives | 28-10-14 | More
  27. Phrases that should be banished from retirement planning

    Perhaps the most crucial change in our retirement planning language is simply to rename "retirement".

    Michael Kitces | 27-10-14 | More
  28. Capitalism inequality & Piketty

    Thomas Piketty's "Capital in the Twenty‐First Century" is certainly the economics book of the year. We have been asked numerous times to appraise his ideas.

    Woody Brock | 24-10-14 | More
  29. The inequality trifecta

    Most countries face a trio of inequalities - of income, wealth, and opportunity. Beyond the moral, social, and political implications lies a serious economic concern.

    Mohamed El-Erian | 24-10-14 | 1 comment | More
  30. The German word for this

    The German word for what we saw in markets this week is Torschlusspanik. Literally "gate-shut-panic", it describes the nasty crush when everyone rushes at once for an exit.

    GaveKal | 17-10-14 | More
  31. China's Gordian policy knot

    China has about five years to lay the groundwork for the transition to a new monetary policy framework with a currency that is sufficiently flexible.

    Robert Gay | 16-10-14 | More
  32. Down the retirement risk zone with gun

    This particularly relevant review of literature on sequencing risk considers the impact of Australia's age pension on retirement spending strategies.

    Angela Ashton, PortfolioConstruction Forum | 15-10-14 | More
  33. US rate signal may be broken

    Relying on Fed tightening to predict the next serious sharemarket weakness may be very dangerous. Perhaps this time really IS different.

    Dominic McCormick | 14-10-14 | More
  34. Market volatility - has it turned?

    Earlier this year, volatility across a whole range of key global assets reached major multi-year lows. But, equity volatility, we expect, has passed it's low for this cycle.

    Chris Watling | 13-10-14 | More
  35. Retirement risk, rising equity glidepaths and valuation-based asset allocation

    The dynamic duo (Kitces and Pfau) are back in their search for the ultimate truth about retirement income planning and how to structure portfolios to minimise drawdowns.

    Angela Ashton, PortfolioConstruction Forum | 03-10-14 | More
  36. Hearing echoes of 1987

    Today is much less reminiscent of 2007, when global equity prices were at similar levels to today, than of 1987. But it seems too early for investors to panic, or even reduce risk.

    Anatole Kaletsky | 02-10-14 | 1 comment | More
  37. Markets' rational complacency

    An increasingly obvious paradox has emerged in global financial markets this year. While geopolitical risks have multiplied, markets remain buoyant, if not downright bubbly.

    Nouriel Roubini | 01-10-14 | More
  38. The future value proposition for financial planning

    Investment management has long been the backbone of financial planning. But is it the future for financial advisers? I think not.

    Tony Vidler, Strictly Business | 29-09-14 | 2 comments | More
  39. 2014 Conference - Webcast

    This Resources Kit is a deluge of videos, podcasts, and papers for all sessions of the jam-packed Conference 2014 program so you can "attend" even if you weren't part of the 600 plus audience.

    19-09-14 | More
  40. A return to valuation-driven markets

    Over the next year or two, asset prices will no longer be driven by economic stats and monetary policy. Three major rotations are likely to continue and gather pace.

    Anatole Kaletsky | 17-09-14 | More
  41. Finding smart beta in the factor zoo

    This paper argues that to make choices regarding smart betas we must first assess whether they're robust. Luckily, it concludes, most so-called factors can be ignored.

    Angela Ashton, PortfolioConstruction Forum | 16-09-14 | More
  42. Slick LICs

    IPOs of LICs continue. But LICs have unique challenges and complexities that make them a complicated investment decision - which is certainly not the way they are marketed.

    Dominic McCormick | 14-09-14 | 10 comments | More
  43. A 'surprise on forward guidance?

    Speculation is building that the Fed will surprise financial markets with a new framework for forward guidance, perhaps as soon as the FOMC meeting on 16/17 September.

    Robert Gay | 12-09-14 | More
  44. The UK now faces years of volatility

    If Scotland does vote for independence, it's hard to come up with a positive scenario for British assets.

    Anatole Kaletsky | 08-09-14 | More
  45. Monetary policy is no threat to markets

    A big correction in equities, if it hits in the next year or two, is unlikely to be caused by monetary policy expectations.

    Anatole Kaletsky | 04-09-14 | More
  46. The crisis in retirement planning

    Robert Merton, 1997 Nobel Prize winner, has recently penned an article about his views on retirement planning. There are some interesting take aways for Australian practitioners.

    Angela Ashton, PortfolioConstruction Forum | 03-09-14 | 1 comment | More
  47. The exaggerated death of inflation

    Modern central banking has worked wonders to bring down inflation. Today, high inflation seems remote. But inflation is only dormant, it is certainly not dead.

    Kenneth Rogoff | 02-09-14 | More
  48. Ramblings about unconstrained debt funds

    Unconstrained debt strategies are flavour of the month, and likely to be very popular amongst investors for several reasons. But where do such funds fit in a portfolio?

    Michael Furey | 02-09-14 | More
  49. The Zen of risk parity and Richard Nixon's surprise benefit

    What do Richard Nixon, novel "Zen and the Art of Motorcycle Maintenance", and Bridgewater Associates have to do with risk parity investing and Conference 2014?

    Greg Bright, Investor Strategy News | 01-09-14 | More
  50. Making the right call on Term Deposits

    Are Term Deposits the most boring subject in finance? Actually, they're anything but. The Australian TD market is an area where it is easy to add demonstrable value for clients.

    Tim Farrelly | 01-09-14 | More
  51. 5 key takeouts: Conference 2014 Finology Forum (where investing meets investors)

    As the first day of our annual Conference program, we hosted the Finology Forum. Our particular focus of finology was as it applies to the giving of investment advice.

    Angela Ashton, PortfolioConstruction Forum | 27-08-14 | More
  52. 2014 Conference Finology Forum - CPD Quiz

    The one-day Conference Finology Forum 2014 program (within the overall three-day Conference program) featured leading investment thinkers from around the world presenting on how to more effectively help investors manage their expectations and investment portfolios. This CPD Quiz is for delegates to complete, to receive CPD accreditation.

    26-08-14 | More
  53. A practical measure of Alpha Potential

    Alpha Potential is gaining traction as a tool to identify opportunities for active management, enhancing the value proposition afforded to active managers.

    Andrew Kophamel and Ben Wang, Aberdeen Asset Management | 17-08-14 | More
  54. Settling in

    People often ask me about my outlook for the US housing market. The outlook is improving - and that's constructive for consumer spending, confidence and jobs.

    Mark Kiesel, PIMCO | 15-08-14 | More
  55. Backgrounder: Reconnecting risk & return

    The last decade has seen a disconnect between investment risk and return vs what we're taught should be the case. What is the long-term relationship? Can it be beaten?

    PortfolioConstruction Forum | 15-08-14 | More
  56. Breaking the risk on/risk off cycle

    A dynamic risk management approach can protect a portfolio again sequencing risk, providing reliable investment returns over the cycle.

    Plato Milliman | 14-08-14 | More
  57. Implementing an absolute risk and return approach to portfolio construction

    This paper reviews the principles, practices, risk management requirements and implementation steps needed to build absolute return focused portfolios.

    Nick Griffiths, Pengana Capital | 13-08-14 | More
  58. Building a robust portfolio for future unknowns

    To ensure risk is genuinely well diversified takes a sophisticated forward-looking scenario-analysis process to combine quantitative rigor with qualitative insights of extreme stresses it might face.

    Mark Foster & Chris Nichols, Standard Life Investments | 12-08-14 | More
  59. Evaluating the Australian bond market through a global lens

    This paper explores the thesis that capturing the traditional relationship of fixed income in the total client portfolio will require more untraditional approaches going forward.

    Chris Siniakov & Andrew Canobi, Franklin Templeton Investments | 12-08-14 | More
  60. Are you hanging your clients' investment aspirations on six stocks?

    Six stocks make up just under half of the Australian equity market. This research paper examines the impact of this on investors' returns, and whether it is responsible investing.

    Olivia Engel | 12-08-14 | More
  61. The quest for returns in the new world paradigm

    This paper explores a different approach to asset allocation and alternative returns sources to reduce the reliance on traditional asset classes and drive returns.

    David Griffith, BlackRock | 11-08-14 | More
  62. Volatility overlay – reconnecting risk and return for equities

    This research paper discusses (in simple terms) how to reconnect the concept of Risk and Return via the practical application of volatility derivatives to portfolios.

    Triple3 Partners | 11-08-14 | More
  63. Understanding private equity's outperformance in difficult times

    This paper explores the opportunities within private equity and private debt and examines their role in providing downside protection for investors.

    Dr Stephan Schäli & Florian Demleitner, Partners Group | 11-08-14 | More
  64. Broader horizons: The evolving high-yield landscape

    Over the past 40 years, the high-yield landscape has grown exponentially. Knowing the key risks and emerging opportunities can help map a path forward.

    Gershon Distenfeld & Ashish Shah, AllianceBernstein | 11-08-14 | More
  65. The future is flexible - why, when, whence?

    Uncertainty about the timing of future interest rate rises poses challenges to fixed income investors. This paper identifies options available in managing portfolios in such an environment.

    Nick Gartside, JP Morgan Asset Management | 11-08-14 | More
  66. Shiller CAPE - terrible but valuable

    After two decades of elevated earnings and PEs - and two bear markets but also three bull markets - many are questioning whether Shiller CAPE is all that predictive.

    Michael Kitces | 08-08-14 | More
  67. The global obsession with US data

    Since 2010, there has been an almost perfect correlation between the strength of the US economy and stock markets outside the US. But this is set to diminish.

    Anatole Kaletsky | 07-08-14 | More
  68. Life after zero

    Risk assets are grinding higher and volatility is extraordinarily low - and monetary stimulus is still plentiful. What does life after zero (rates) look like?

    BlackRock Investment Institute | 07-08-14 | More
  69. Opportunities and challenges in a less US-centric world

    We've come to accept a world where the US drives what happens in the global economy and markets. But that's changing - with significant implications for portfolios.

    Dominic McCormick | 05-08-14 | More
  70. Russia's Eurasian vision

    The escalating conflict in Ukraine has focused attention on a fundamental question: What are the Kremlin's long-term objectives?

    Nouriel Roubini | 04-08-14 | More
  71. Summer essays

    Investing can and often is intellectually compelling. But it should not be driven by excitement, as it is for many individuals.

    Jeremy Grantham, GMO | 31-07-14 | More
  72. Booming until it hurts?

    Those who warn of grave dangers if speculative price increases are allowed to continue are right, even if they can't prove there is cause for concern.

    Robert J. Shiller | 30-07-14 | More
  73. The case for a structural equity bull market

    Are equities at the end of a five-year cyclical bounce or the start of a 15-year structural breakout? History suggests two contradictory answers.

    Anatole Kaletsky | 29-07-14 | More
  74. Clients don't want an adviser - they want a planner

    New research found 78% of consumers care about being comfortable in the future - that alone tells us where the future is for advisers.

    Tony Vidler, Strictly Business | 28-07-14 | More
  75. Market cap-weighted bond indices - always tough to beat

    It is not surprising that bond managers have significant difficulty in outperforming a market cap-weighted benchmark.

    Michael Furey | 28-07-14 | More
  76. Behavioural finance vs standard finance

    This paper is a great introduction to why behavioural finance is quickly becoming recognised as a field that can add real value to the wealth management industry.

    Angela Ashton, PortfolioConstruction Forum | 26-07-14 | More
  77. Investing in communicating about investing

    As investment professionals, we live investing every day. We spend excessive time reporting and not enough 'rapporting.'

    Prof Jack Gray, UTS | 21-07-14 | 1 comment | More
  78. Evidence for the stability of risk tolerance

    The GFC was the first crisis where good risk profiling tools were in place for a wide range of investors. Two papers look at whether risk tolerances altered materially through it.

    Angela Ashton, PortfolioConstruction Forum | 11-07-14 | More
  79. Geopolitical risk - Implications for portfolio construction

    Do geopolitical events involving potential or actual military conflict really matter in the constructing of investment portfolios?

    Dominic McCormick | 08-07-14 | More
  80. Gouging the Gauchos

    The recent US supreme court ruling that Argentina's hold-out creditors have the right to be paid in full is a dangerous decision for all countries for two reasons.

    Nouriel Roubini | 07-07-14 | More
  81. A warning to bond bears

    Are we at the start of a long-term bond bear market? Here are three factors that I expect to keep bond yields lower for longer, and five important implications for investors.

    Curt Custard, UBS Global Asset Management | 01-07-14 | More
  82. 2014 Symposium - CPD Quiz

    Symposium NZ 2014 facilitated debate on the three pillars of portfolio construction – markets, strategies and investing - to help delegates build better quality portfolios. This CPD Quiz is for delegates to complete, to receive Structured CPD Hours.

    30-06-14 | More
  83. Rethinking the Sino-American relationship

    The upcoming US/China 6th Strategic & Economic Dialogue is an opportunity for serious reconsideration of the relationship between the world's two most powerful countries.

    Stephen Roach | 27-06-14 | More
  84. The lesson of Sarajevo

    The assassination of Archduke Ferdinand in Sarajevo 100 yrs ago tomorrow lit the fuse to WW1. There are many points of modern relevance in the catastrophe.

    Anatole Kaletsky | 26-06-14 | More
  85. Show me the alpha

    This paper examines the oft-considered subject of hedge fund returns, finding far greater dispersion than for traditional fund managers.

    Angela Ashton, PortfolioConstruction Forum | 25-06-14 | 3 comments | More
  86. Don't save 10% of income (spend just 50% of every raise)

    The staple of retirement planning - save a percentage of income - makes it surprisingly difficult to ever reach retirement. The alternative is much easier and more successful.

    Michael Kitces | 20-06-14 | More
  87. Rates are going up - so don't buy fixed interest?

    Everyone knows bond rates are going up - so why would you buy fixed interest? Actually, there are three really good reasons.

    Tim Farrelly | 18-06-14 | More
  88. Academy Winter Seminar 2014 - Resources Kit

    PortfolioConstruction Forum Academy Winter Seminar 2014 featured four sessions: Risk, return & relating; Statistics, lies, and investment performance analysis; How safe are safe withdrawal rates in retirement?; and, Communicating and learning with and from clients.

    18-06-14 | 31 comments | More
  89. Sunnis on the march

    The Islamist surge through central Iraq has the potential to upset the plans of investors who've convinced themselves that volatility is in the past.

    Charles Gave, GaveKal | 16-06-14 | More
  90. The good guys and the bad guys in the cradle of civilisation

    What we are witnessing in Iraq is a war within Islam. Will it mutate into a broader regional war thereby threatening oil supplies?

    Jonathan Pain | 14-06-14 | 5 comments | More
  91. Dare to be great - the challenge of being different

    Investing differently gives no certainty of great results (increasing the odds of being wrong as well as right). But it is a necessary but not sufficient ingredient for great performance.

    Dominic McCormick | 10-06-14 | More
  92. The 4% non-solution

    Moving to a twenty-first-century currency system would make it far simpler to move to a twenty-first-century central-banking regime as well.

    Kenneth Rogoff | 10-06-14 | More
  93. An Uber bubble awaits

    Last week's most important financial event was not US payroll data, the ECB, or the rapprochement with Putin. It was the pricing of Uber, at 60 times rumoured revenues.

    Anatole Kaletsky | 09-06-14 | More
  94. Home price beliefs in Australia

    Are we any good at estimating the values of our homes? Surprisingly, on average we are, according to a RBA study. It also found a link to weightings of risky assets in portfolios.

    Angela Ashton, PortfolioConstruction Forum | 05-06-14 | More
  95. Tomorrow is not a game changer

    Tomorrow we expect to see the latest Band-Aid solution being applied to the eurozone. Forgive me if I don't roll out the barrel. As I see it, there are four key problems.

    Charles Gave, GaveKal | 04-06-14 | More
  96. Fureyous: How often should we rebalance portfolios?

    Across the industry, portfolio rebalancing is the norm - with little agreement on the optimal frequency. So I experimented to find out which frequency is best.

    Michael Furey | 03-06-14 | 2 comments | More
  97. The Great Backlash

    Today's backlash against trade and globalisation should be viewed in the context of what, as we know from experience, could come next.

    Nouriel Roubini | 02-06-14 | More
  98. Behaviour in the spotlight

    NZ FMA new CEO, Rob Everett, gave an interesting briefing by way of introduction. It contained a very strong warning for the short term, and an intriguing line of thinking for the longer term. Both focused on behaviour.

    Tony Vidler, Strictly Business | 02-06-14 | More
  99. 2014 Symposium - Resources Kit

    This Resources Kit is a deluge of videos, podcasts, and papers for all sessions of the jam-packed Symposium 2014 program so you can "attend" even if you weren't part of the 200-strong audience.

    30-05-14 | More
  100. Drumroll to the ECB meeting

    Markets are pricing in expectations that the ECB will have to be very aggressive next week if it is to turn back the tide of European deceleration. It's reminiscent of October 1987.

    Louis-Vincent Gave, GaveKal | 29-05-14 | More
  101. Kyle Bass: The looming crises in Asia

    Nobody is more outspokenly bearish on Japan than Kyle Bass. He recently reiterated doubts about Japan's chances of averting a debt crisis, and cast doubt on China's economy.

    Robert Huebscher, Advisor Perspectives | 27-05-14 | More
  102. Changes in retirement and the retirement spending smile

    Most research assumes retirees maintain a consistent standard of living. A new study disproves this, implying we may be overestimating funds needed to retire by up to 20%.

    Michael Kitces | 26-05-14 | More
  103. Investing in global bonds - a smarter way

    If you were lending somebody money, would you lend them more money just because they had more debt? If you are investing according to a debt-weighted benchmark, that is exactly what you are doing.

    Graham Ansell, ANZ NZ Investments | 14-05-14 | More
  104. Moving forward with the normalisation of yields

    Faced with the prospect of rising yields, some investors are cutting bond allocations. But the bond market can offer compensation against rising rates.

    Scott Mather, David Fisher & Michael Story, PIMCO | 14-05-14 | More
  105. Removing central bank stimulus - implications for fixed interest

    Understanding what is going on under the bonnet at central banks is key to understanding what will drive markets – and therefore how to best position portfolios.

    Christian Hawkesby, Harbour Asset Management | 14-05-14 | More
  106. Valuations matter: Implications for portfolio risk and return outcomes

    While it is well established that equity valuations impact medium-term equity returns. It is less well known that starting period equity valuations also impact medium-term equity volatility and bond-equity correlations.

    Keith Poore, AMP Capital NZ | 14-05-14 | More
  107. US recovery will surprise on the upside

    The US is undeniably the critical market within the global economy - and there are real sign-posts that clearly suggest it is ready to surprise the world on the upside.

    Nikki Thomas | 14-05-14 | More
  108. The democratic disruption of finance

    Having redefined media, technology, the Internet and social media will soon likely start transforming how capital is mobilised and allocated.

    Mohamed El-Erian | 09-05-14 | More
  109. Longevity risk aversion and optimal safe withdrawal rates

    There is huge variety in retirement income strategies. This paper introduces "longevity risk aversion" and its impact on safe withdrawal rates.

    Angela Ashton, PortfolioConstruction Forum | 07-05-14 | 1 comment | More
  110. A tale of two sharemarkets

    Often, the true dangers reside where investors are most comfortable going and the best opportunities are where investors fear to tread.

    Dominic McCormick | 06-05-14 | More
  111. It's time to start looking at alternative assets

    It is time to start looking at alternative assets. Not because there is any pressing need to invest today, but because thorough analysis takes time and mistakes can be expensive.

    Tim Farrelly | 02-05-14 | More
  112. Three strategies for working with older clients

    Older adults are crossing the most challenging and complex frontier of their lives. To earn a role with them, financial advisers have to learn more about how older clients think and communicate.

    David Solie, RiskTutor | 01-05-14 | More
  113. The ABC of Economic Literacy: 'I' is for incentives

    As Glen Whitman argues, "What distinguishes good economic thinking from bad is recognition of the subtle, creative, and often unforeseen ways that people respond to incentives."

    The New Zealand Initiative | 01-05-14 | More
  114. Global ground zero in Asia

    Long-standing historical grievances among China, Japan, Korea, India, and others remain open wounds. Why are tensions among Asia's great powers becoming more serious?

    Nouriel Roubini | 01-05-14 | More
  115. The ABC of Economic Literacy: 'H' is for history of economic thought

    Studying economics these days, it is quite possible to get a degree without ever having come across the name of a single economist. This is a pity and it is not really appropriate to a social science.

    The New Zealand Initiative | 29-04-14 | More
  116. The untapped power of pro bono

    There is an enormous power and prestige for a profession in doing public good. Done correctly, we will stand a good chance of earning more respect than politicians in future Reader's Digest polls.

    Tony Vidler, Strictly Business | 29-04-14 | More
  117. Global equity investing: Insights into a better portfolio

    Towers Watson's compendium of insights into global equity investing contains useful insights about issues many portfolio construction practitioners face every day.

    Angela Ashton, PortfolioConstruction Forum | 29-04-14 | More
  118. Fureyous: Absolute return investing... a nice goal

    It is fine to have positive returns year-in, year-out as an objective or goal. But, absolute returns should never be presented as an expectation, as disappointment is inevitable.

    Michael Furey | 29-04-14 | 6 comments | More
  119. The ABC of Economic Literacy: 'G' is for government

    An empirical study found that in advanced economies, the greatest factor that has increased the growth of government is the welfare state. Economists are highly sceptical about such transfers.

    The New Zealand Initiative | 17-04-14 | More
  120. How to tell what potential clients are thinking

    As investment advisers, we love to inundate prospective clients with data. But disseminating large amounts of data is actually counter productive.

    Dan Solin, Buckingham Asset Management | 17-04-14 | More
  121. Four inevitable changes in investing

    Stein's law, a rule of thumb for politics, economics and business, is that "If something can't continue, it will stop." Here are four inevitable changes in the investing environment.

    Dan Richards, ClientInsights | 15-04-14 | More
  122. The ABC of Economic Literacy: 'F' is for freedom

    Fortunately, New Zealand consistently ranks near the top of international indices measuring economic freedom. But this also means that we might take it too much for granted.

    The New Zealand Initiative | 15-04-14 | More
  123. Academy Autumn Seminar 2014 - Resources Kit

    The Academy Autumn Seminar 2014 featured four sessions: 10 golden rules for portfolio construction; Reassessing the global debt spectrum; Currency revisited - to hedge or not to hedge; Volatility investing - the next frontier.

    09-04-14 | 40 comments | More
  124. Emerging markets on trial

    Against a backdrop of currency slides, yield spikes and chronic equity underperformance, we invited our EM experts to defend their asset class against three charges.

    BlackRock Investment Institute | 09-04-14 | More
  125. I've always done collaborative advice (yeah, right!)

    Recently, I ran a session for a group of 20-years plus CFP veterans. What became evident was that their idea of using technology and engaging collaboratively with clients was very different to mine.

    David Greenslade, Strategi | 08-04-14 | 3 comments | More
  126. Investing for retirement: the defined contribution challenge

    Target date funds are becoming the workhorse for DC plans but there are problems with the approach. This paper offers a portfolio construction framework to overcome them.

    Ben Inker & Martin Tarlie, GMO | 08-04-14 | More
  127. The Fed's exit strategy

    The Fed's published policy on how it will exit QE is fairly old. Overall, though, there is not a huge overhang of securities that the Fed needs to sell to exit.

    Robert Gay | 07-04-14 | More
  128. Active versus passive

    The active versus passive debate was recently given a boost when Warren Buffet suggested in his annual letter that most investors are better off investing passively.

    Dominic McCormick | 07-04-14 | 1 comment | More
  129. Age banding - a model for planning retirement income needs

    In recent months, we've highlighted one school of research on funding retirement income, being the sustainable withdrawal rate approach. This paper takes a different approach.

    Angela Ashton, PortfolioConstruction Forum | 04-04-14 | 1 comment | More
  130. The ABC of Economic Literacy: 'E' is for entrepreneur

    George W. Bush allegedly once said, "the problem with the French is that they don't have a word for entrepreneur." Indeed, most people have no idea what entrepreneurship really means.

    The New Zealand Initiative | 03-04-14 | More
  131. Best practices in client communication

    A recent Australian study of how clients prefer to be communicated with from their financial advisers sheds some interesting light on the challenge.

    Michael Kitces | 03-04-14 | More
  132. The changing face of correlation?

    The challenge for investors over the past several years is that diversification did not work as expected. The dynamic nature of correlation must be factored into portfolio modeling.

    Dan Farley, State Street Global Advisors | 02-04-14 | 1 comment | More
  133. Understanding the High Net Worth client

    While most financial advisers aspire to work with HNW clients, very few successfully do so with any scale or significance. Most advisers will have a few HNW clients, but all too few of them. Why?

    Tony Vidler, Strictly Business | 01-04-14 | More
  134. The euthanasia of pensioners in Peoria

    So the US budget deficit is contracting because government consumption is falling? It is really just an accounting illusion. Financial repression is still the order of the day.

    Charles Gave, GaveKal | 01-04-14 | More
  135. The changing face of global risk

    Economic, financial, and geopolitical risks are shifting. A year or two ago, six risks stood at center stage. These have now reduced. But six others have been growing.

    Nouriel Roubini | 31-03-14 | 1 comment | More
  136. Rise of the machines - how will the EMs keep pace?

    In theory, recent currency devaluations should make EM countries more competitive. But they're also facing a technological jump that they may not be able to keep up with.

    Hon. Dr Pippa Malmgren, DRPM Group | 27-03-14 | More
  137. The ABC of Economic Literacy: 'D' is for debt

    In Shakespeare's Hamlet, Polonius's advice was "Neither a borrower nor a lender be For loan oft loses both itself and friend." In contrast, borrowing and lending between strangers makes the world a better place.

    The New Zealand Initiative | 27-03-14 | More
  138. The four questions every prospect wants answered

    When meeting with a prospect for the first time, financial advisers should limit discussion about their background to 3 minutes and address the 4 key questions most prospects want answered.

    Dan Richards, ClientInsights | 25-03-14 | More
  139. The global economy's tale risks

    Just as it is hard to make a blockbuster film every time, no leader can consistently shape the narratives that affect the economy. But they need to try.

    Robert J. Shiller | 25-03-14 | More
  140. The takeaways from the latest Fama-French research

    Does Fama and French's latest work, A Five-Factor Asset Pricing Model, provide any information that can be of practical value to advisers or investors? The answer is no.

    Michael Edesess | 25-03-14 | 1 comment | More
  141. Safety in numbers?

    When any investment and, in particular, an alternative investment begins to be considered mainstream with attendant big inflows, the end is generally nigh.

    Tim Farrelly | 24-03-14 | More
  142. Monitoring the success of target date funds

    The nature of target date funds - encompassing multiple objectives and changing asset allocations over time - raises challenges for performance reporting.

    Sean Henaghan, AMP Capital | 24-03-14 | More
  143. Heading for the exit

    The Fed's clear message from yesterday's FOMC meeting is that it will stay the course on exiting QE as gracefully and slowly as possible.

    Robert Gay | 21-03-14 | More
  144. Sticking to the limit

    What impact has the FMA's Guidance Note: Limited Personalised Advice published in December had on how advisers handle lower value clients?

    David Maida, financialalert | 20-03-14 | More
  145. The ABC of Economic Literacy: 'C' is for competition

    It is through competition between wants and different ways of satisfying them, that markets create prosperity. In economic thinking, competition has two main functions.

    The New Zealand Initiative | 20-03-14 | More
  146. Malthus, Marx, and Modern Growth

    Will each future generation continue to enjoy a better quality of life than its immediate predecessor? The likely answer is yes, but the risks seem higher.

    Kenneth Rogoff | 19-03-14 | 1 comment | More
  147. How much do clients withdraw in retirement, really?

    As the logic goes, retired clients deplete their portfolios, and more pass away as the years go by, so a firm with aging clients is akin to a rapidly depreciating asset. But is this true?

    Michael Kitces | 18-03-14 | More
  148. Thoughts on investing - scale and skill in active management

    It's the eternal debate - can active management outperform? Two recent reports offer some interesting insights into the issue.

    Angela Ashton, PortfolioConstruction Forum | 17-03-14 | More
  149. Russia's permanent interests

    If you believe the US State Department has the Crimean situation under control, plan for a bullish scenario for risk assets. Plan for the opposite, if you believe Putin will prevail.

    Louis-Vincent Gave, GaveKal | 13-03-14 | 1 comment | More
  150. The ABC of Economic Literacy: 'B' is for banking (central)

    Central banks stand at the apex of the banking confidence pyramid but cannot insulate the public from the consequences of collective fiscal and financial follies.

    The New Zealand Initiative | 12-03-14 | More
  151. Global investing trend has much further to go

    Australians are waking up to the fact that they have not had enough global (mainly equity) exposure. Why the case for more global exposure now?

    Dominic McCormick | 12-03-14 | More
  152. Safe withdrawal rates in retirement - an Australian perspective

    A new research paper looks specifically at withdrawal rates in the Australian context, confirming the legislated minimums for account-based pensions are much too high.

    Angela Ashton, PortfolioConstruction Forum | 12-03-14 | More
  153. What does the "client first" Code rule mean in practice?

    Aside from CPD changes, the most distinct change in the new Code of Professional Conduct for AFAs is to prioritise the "client first" rule. We asked advisers what this means in day-to-day business.

    David Maida, financialalert | 12-03-14 | More
  154. Trust is created in interactions

    It is common knowledge that a trusted adviser has a far higher chance of selling products or services than one who is not trusted. However, what is meant by the word trust?

    David Greenslade, Strategi | 11-03-14 | More
  155. 2014 Markets Summit - Resources Kit

    This Resources Kit is a deluge of videos, podcasts, and papers for all 18 sessions of the jam-packed Markets Summit 2014 program - The Great Escape (what will markets be like in the QE runout?) so you can "attend" even if you weren't part of the 500-strong audience.

    07-03-14 | More
  156. Five opportunities for financial advisers to add value

    As competition in the financial advice business intensifies, advisers must focus on those activities that add the most value for clients.

    Joe Tomlinson, Tomlinson Financial Planning | 06-03-14 | More
  157. The ABC of Economic Literacy: 'A' for Adam Smith

    Few economists are more famous than the commonly regarded founder of economics, Adam Smith. Over 238 years later, his ideas are still relevant.

    The New Zealand Initiative | 06-03-14 | More
  158. The year ahead - what global markets experts expect

    When investment experts are in agreement, we should always ask what could go wrong with the consensus.

    Graham Rich, PortfolioConstruction Forum & financialalert | 04-03-14 | More
  159. Realpolitik in Ukraine

    In finance and geopolitics, experience must always prevail over hope, and realism over wishful thinking. A grim case in point is the Russian incursion into Ukraine.

    Anatole Kaletsky | 03-03-14 | 2 comments | More
  160. The fine art of communicating with clients

    Communicating with clients is one of an adviser's most important responsibilities. In the modern world, the options of how to do this are many. What works?

    David Maida, financialalert | 27-02-14 | More
  161. Using social proof to help clients make better decisions

    If we're explaining a "norm" to clients that embeds a social proof, we should be using norms that show what is successful, not describing the commonality of failure!

    Michael Kitces | 25-02-14 | 1 comment | More
  162. Over the wire or under it, the Great Escape will be dangerous

    In rapid-fire presentations, 18 experts from various parts of the world debated the biggest issue facing the financial world.

    Greg Bright, Investor Strategy News | 25-02-14 | More
  163. Markets Summit 2014 - key takeouts

    In a new format for Markets Summit 2014, delegates took the role of CIO for the day, as the 18 strong presenter faculty made the case for their highest conviction insights.

    Angela Ashton, PortfolioConstruction Forum | 19-02-14 | More
  164. The missing ingredient in attracting clients

    The boom demographic joining Facebook is age 65+ at the moment. If retirees are flocking to social media channels, shouldn't you?

    Tony Vidler, Strictly Business | 13-02-14 | More
  165. Backgrounder: Unconventional Monetary Policy

    Why Unconventional Monetary Policy is undertaken, how it works, what it does, whether it's inflationary, and some of the unintended consequences.

    PortfolioConstruction Forum | 13-02-14 | More
  166. Diverging markets

    Looking ahead, returns on emerging market debt are likely to better reflect the diversity of the asset class. More than ever, it pays to know your market.

    Goldman Sachs Asset Management | 11-02-14 | More
  167. The US recovery will surprise on the upside

    The US is undeniably the critical market within the global economy - and there are real sign-posts that clearly suggest it is ready to surprise the world on the upside.

    Hamish Douglass, Magellan Financial Group | 11-02-14 | More
  168. Finding value in a coupon driven market

    2013 was a transitional year, as the market woke up to the reality that extraordinarily accommodative monetary policy would not go on forever. What of 2014?

    Greg McGreevey, Invesco | 11-02-14 | More
  169. More tinkering or a planned rejig?

    Many New Zealand financial advice firms need to fundamentally rejig their way of doing business, to improve client retention, drive down costs and improve the bottom line.

    David Greenslade, Strategi | 11-02-14 | 1 comment | More
  170. From liquidity surfing to bull running

    The start of the end of the Federal Reserve's money printing is expected to reshape the global investment landscape.

    Tai Hui, JP Morgan Asset Management | 11-02-14 | More
  171. Determining withdrawal rates using historical data

    William Bengen established the 4% rule - and showed a higher exposure to equities was better for retirement portfolios.

    Angela Ashton, PortfolioConstruction Forum | 06-02-14 | 4 comments | More
  172. The trouble with emerging markets

    Turmoil in EM economies has returned with a vengeance. But the threat of a full-fledged crisis remains low, even in the Fragile Five.

    Nouriel Roubini | 06-02-14 | More
  173. Academy Summer Seminar 2014 - Resources Kit

    The Academy Summer Seminar 2013 featured four sessions: The paradox of wealth (& what can be done); Don't concentrate too hard; Developing your investment philosophy; and, Financial literacy and cognitive functioning.

    05-02-14 | More
  174. The role of sentiment and contrarian investing

    As we entered 2014, the consensus on the best and worst areas to invest could be described very simply: momentum investing ruled, contrarian investing was dead.

    Dominic McCormick | 05-02-14 | More
  175. What's causing the panic?

    The bullish mood suddenly changed in early January. Here is a structure for thinking about recent market events that may be helpful in assessing new evidence as it comes along.

    Anatole Kaletsky | 04-02-14 | More
  176. Professional bodies get up to speed

    financialalert asked the heads of four financial adviser bodies about their plans for 2014, and what they will have on offer for advisers in the coming months.

    David Maida, financialalert | 04-02-14 | More
  177. Blowing in the wind

    A report on asset allocation intentions of financial planners set the voice in my head singing "How many times..."

    Tim Farrelly | 03-02-14 | More
  178. The end of unconventional monetary policy

    There is a broad acceptance that Bernanke's monetary policy helped stave off another global depression. But the final verdict on unconventional monetary policy remains years away.

    David Hale, David Hale Global Economics | 29-01-14 | More
  179. What a wonderful world

    The majority of the world will see an improvement in economic growth this year. But, after a lengthy and linear rise, equity markets will see much greater volatility this year.

    Jonathan Pain | 28-01-14 | More
  180. Is the worst behind us?

    Breaking Unconventional Monetary Policy is not an asymmetric outcome - it is like 50 shades of grey, whips included, particularly for emerging markets.

    Nick Bullman, CheckRisk | 26-01-14 | More
  181. BUMP and the global economy

    Change is stirring and markets do not like uncertainty. Breaking Unconventional Monetary Policy is a catalyst for slower economic growth and deflation - market volatility will only increase in 2014.

    Nick Bullman, CheckRisk | 19-01-14 | More
  182. Breaking Unconventional Monetary Policy

    Breaking Unconventional Monetary Policy is going to prove too hard to achieve. Central Banks will run scared of their political masters; QE or an equivalent will recommence.

    Nick Bullman, CheckRisk | 12-01-14 | More
  183. Outlook on the United States

    The US economy made substantial progress in 2013. The economic outlook for 2014 appears promising -and the US equity market can continue to appreciate.

    Ronald Temple | 07-01-14 | More
  184. Inflation, uncertainty and portfolio management

    Will QE ruin retirement? Looking back at the risks inflation has presented in the past helps us look forward to the potential consequences.

    Susan Gosling | 01-01-14 | More