To mark the 500th Edition of Firstlinks (including its predecessor, Cuffelinks), rather than an indulgent reminisce, we publish two extracts from other sources: Greg Bright's forthcoming book on the funds management industry, and Telum Media's recent interview with me.
Thanks for joining this 10-year journey with thousands of articles written by hundreds of expert contributors, in the fascinating and always-mysterious world of financial markets, investments and superannuation. These articles are stored in our searchable archive across a vast range of subjects and the search box is in the top right-hand corner of our home page. All 500 editions of Firstlinks are also stored on the website and accessible under 'Previous Editions' on the menu bar.
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Greg Bright is a doyen of Australian financial publishers, and over a four-decade career, he launched many of Australia's leading investment newsletters. Greg is working on a new book on the evolution of the superannuation and funds management industry in Australia, due for publication in early 2024, with the title: 'Our Money in Their Hands - the People Behind Super'.
His book will include a chapter on the specialist media which grew alongside the rest of the industry, and he has given permission to publish this extract. Nobody is better qualified than Greg to write the history of the industry, and it will be an passionate and informative read.
(I will add one thing Greg does not mention ... the Firstlinks newsletter usually enjoys industry-high open rates of around 60%)
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Covering SMSFs
While many have tried, few publishers have managed to appeal to the SMSF market from a specialist publishing perspective. Darin Tyson-Chan and Graham Hand are standouts.
Tyson-Chan went out on his own in 2012 and survived with his Benchmark Media through specialist publications and events. He became, probably, the most knowledgeable journalist focused specifically on SMSFs. While he has focused primarily on the industry sector supporting SMSFs, a more unlikely publisher, Graham Hand, has managed to attract readers among a swag of SMSF trustees themselves.
A former banker, including 12 years at Colonial First State, Hand didn’t set out to be a publisher in the SMSF market as such. In fact, he didn’t set out to be a commercial publisher at all. He decided on early retirement in 2012, when he had been General Manager of Funding and Alliances at Colonial First State, to concentrate on his writing. His first book, ‘Naked Among Cannibals’, was about banking, published in 2001, but his second, ‘Beyond Lucas Heights’, was a thriller backgrounded by Australia’s nuclear reactor, in 2005.
Having put fiction writing on the backburner for several years, he joined with former Colonial colleague Chris Cuffe to launch a weekly newsletter, Cuffelinks, in 2012. He always did the bulk of the work on the title and changed its name to Firstlinks when he acquired Chris’s share. He sold to Morningstar in 2019 but has remained at the helm as he attempts to manage himself back to more creative writing.
Firstlinks is an unlikely success story for several reasons. Graham wanted to publish quality information and views about investing, preferably without the constraints that advertising would place on the editorial. He also wanted to reach as many investors as possible, both inside and outside the industry. He and Chris were going to give something back to the industry which had treated them well, he said in 2012. As he has enjoyed pointing out since, we predicted that he wouldn’t last more than a couple of years. He would get sick of what would probably be more work than he expected for no money, we thought at Investor Strategy News. In 2023 he was still there.
Graham came up with a perfect way to be paid for his efforts, employ one or two staff to help and also stick to his guns on quality. Firstlinks has about two dozen annual sponsors; mainly fund managers which are listed on the newsletter and website and are able to have a limited number of edited versions of white papers and thought leadership pieces published in return. With Graham’s close direction, this editorial is a cut above the sponsored content found in the other trades.
The surprising thing is that well before it was sold to Morningstar, Firstlinks had developed a circulation which covered both the institutional and wholesale (adviser) parts of the industry as well as high-net-worth private investors (retail). The target was simply ‘engaged investors’. The free circulation of about 30,000 could be combined with Morningstar’s own mailing lists, totalling about 120,000. More importantly, his readers were more engaged than the average reader. This has resulted in a readership for Firstlinks of about 100,000 ‘monthly active users’.
With online publishing of investment industry news and information, the average reader cannot remember where they read what they read. It becomes an amorphous blur of mainly rehashed press releases published daily or intra-day. Even without hard news, or perhaps because of that, Firstlinks has stood clear of the blur, and readers seem to appreciate it.
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Telum Media provides news and information about media in the Asia Pacific region with dedicated country teams giving on-the-ground insights into the changing media environment. A weekly 'Telum Talks' is produced in Australia, including a recent interview with Graham.
Telum Talks To…Graham Hand, Editor of Firstlinks and Editorial Director of Morningstar Australia
by Chloe Arentz
As Editor of Firstlinks, can you give us a bit of background on the newsletter for someone who has never read it?
Firstlinks publishes enduring and original articles showing how to invest for the long term, rather than focusing on stories about today’s noise and market.
The weekly newsletter is free and our website includes thousands of articles on investing and financial markets. Most of our readers are not market professionals but self-directed, smart investors who want to learn more about their portfolios as they plan for the future. Each edition includes useful information for the full range of knowledge, from beginner to expert.
The newsletter is approaching its 500th edition. How has it evolved since its first publication?
We began over 10 years ago as a platform for experienced market experts, such as fund managers, to share their investing ideas. We have evolved into a leading site for discussing financial markets, investment products, retirement, superannuation, and demographics with engaged readers who comment enthusiastically.
Hundreds of people from a wide variety of backgrounds have written for us, all stored in a searchable archive. Although we write our own content, most of our articles come in each week from market experts who want to reach our 100,000 monthly active users.
What kind of story makes a good fit for Firstlinks?
We publish seven articles each week plus an editorial which gives scope to cover many topics and reader needs. Most of our readers are nearing or in retirement, and articles on superannuation and retirement planning always perform well.
We like fresh and original opinions, sometimes controversial, rather than simply facts, with evidence to support a view. The best engagement comes with articles discussing potential new government policies, and how to build a portfolio or asset allocations in changing conditions.
Considering the state of the global economy over the past few years, how do you think investment and superannuation strategies are changing?
In recent years, when interest rates were close to zero, it was difficult for investors or savers to achieve decent returns on cash or deposits, and many turned to the stock market for their income. However, older people generally do not have the risk appetite to hold most of their assets in shares and will tend to sell when the market falls.
The major change is that with rising rates, it is now possible to achieve around four per cent to six per cent on deposits or securities, which is sufficient income for many people. A diversified portfolio of stocks, bonds, property and alternatives will work well for most investors if they can focus long-term and not panic when the market falls.
Last time you spoke to Telum, you said the “media does investors a disservice with headlines like 'markets panic' and 'stocks plunge'." How has the financial media climate changed since then?
It has not changed, it is designed to sell newspapers or generate views. The hysteria turns people away from buying quality shares, which over the long run, are the best investments for generating wealth.
If investors can accept that the rewards from buying shares come with a degree of risk, and if they can ignore the noise and short-term volatility, they will be rewarded over the decades ahead to fund their retirement. Moving in and out of markets, buying at the top in euphoria and selling at the bottom in panic, delivers the worst outcome, and much of the media encourages these types of reactions.
Are there any big stories you are keeping an eye on this year?
There is always something happening in financial markets. The biggest story now is inflation causing rising interest rates, but much of the media coverage is repetitive and predictable.
The challenge is to find a different angle, as every news outlet is already describing how the Reserve Bank increases rates every month. It’s become a boring story - a reporter standing in Martin Place, an interview with a home loan borrower, a quotation from the Reserve Bank Governor, dire consequences of future increases… it’s the same each month.
Rather, focus on the implications for asset allocation, the winners and losers, and how investors should take advantage of the opportunities.
Also, the Federal Budget is coming in May and we expect major changes to superannuation, and the Government is undertaking a review of financial advice.