Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 322

Welcome to Firstlinks Edition 322

  •   5 September 2019
  •      
  •   

The latest update on the Future Fund's portfolio shows an asset allocation that differs from almost everyone else, and certainly most SMSFs. The stark variations versus individual investors are the heavier allocation to global instead of domestic equities and significant investments in private equity, debt securities, alternative assets, infrastructure and timberland.

We explore the Future Fund's investment strategies and the lessons individuals can learn, although its claims about low volatility are as much about unlisted assets as a measure of risk.

A standout feature is a move into different fixed income assets, including direct lending, emerging market debt, peer-to-peer lending, trade finance and bank capital relief financing. Director of Debt, James Waldron, told an Investment Magazine conference:

"It's a reflection of where we see value, where we see diversification and the types of risk premia we desire at the fund level as opposed to just wearing a credit hat."

Also on asset allocation, Gemma Dale reveals the share trading preferences of nabtrade clients, with a switch underway versus patterns of the past.

For those looking to equities to cover the loss of income on cash or term deposits, Michael Pricewarns it is not a process of simply maximising dividends and there are risks to manage.

Investing in a major demographic theme, Mike Murray identifies four companies on the ASX which are benefitting from increased spending on healthcare by an ageing population.

Ashley Owen explains why the results in the latest August reporting season were disappointing. It reflects Australian GDP which grew at only 1.4% in 2018/2019, the lowest since the GFC.

And Craig Day gives valuable pointers on how to maximise superannuation benefits by equalising balances within a couple. New rules on super means there's a lot to gain from some simple steps.

Cuffelinks gains thousands of new readers each year who may not know about our massive archive of articles. As a reminder of the new section in the middle of our website with Classic Articles from the past, we highlight one of the most popular by Chris Cuffe based on his decades of investing experience. We will rotate these classics online each week so take a look.

To mark Vanguard's 10 years of offering Exchange Traded Funds in Australia, this week's White Paper is their 'Roadmap to Financial Security: a framework for decision-making in retirement'. It's a great planning primer for anyone thinking about or in retirement.

 

Graham Hand, Managing Editor

For a PDF version of this week’s newsletter articles, click here.

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

Latest Updates

Investment strategies

9 lessons from 2024

Key lessons include expensive stocks can always get more expensive, Bitcoin is our tulip mania, follow the smart money, the young are coming with pitchforks on housing, and the importance of staying invested.

Investment strategies

Time to announce the X-factor for 2024

What is the X-factor - the largely unexpected influence that wasn’t thought about when the year began but came from left field to have powerful effects on investment returns - for 2024? It's time to select the winner.

Shares

Australian shares struggle as 2020s reach halfway point

It’s halfway through the 2020s decade and time to get a scorecheck on the Australian stock market. The picture isn't pretty as Aussie shares are having a below-average decade so far, though history shows that all is not lost.

Shares

Is FOMO overruling investment basics?

Four years ago, we introduced our 'bubbles' chart to show how the market had become concentrated in one type of stock and one view of the future. This looks at what, if anything, has changed, and what it means for investors.

Shares

Is Medibank Private a bargain?

Regulatory tensions have weighed on Medibank's share price though it's unlikely that the government will step in and prop up private hospitals. This creates an opportunity to invest in Australia’s largest health insurer.

Shares

Negative correlations, positive allocations

A nascent theme today is that the inverse correlation between bonds and stocks has returned as inflation and economic growth moderate. This broadens the potential for risk-adjusted returns in multi-asset portfolios.

Retirement

The secret to a good retirement

An Australian anthropologist studying Japanese seniors has come to a counter-intuitive conclusion to what makes for a great retirement: she suggests the seeds may be found in how we approach our working years.

Sponsors

Alliances

© 2024 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.