Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 241

Cuffelinks Newsletter Edition 241

  •   23 February 2018
  •      
  •   

Last week, Sydney was Conference Central, and in our never-ending search for great content, we attended three big ones. Unexpected themes emerged that are different every year.

At Morningstar, the strongest message was the merit of contrarian investing. It's the oft-quoted Buffett mantra of being "greedy when others are fearful". So many fund managers now claim they are contrarian, when will it become contrarian to say you're not contrarian?

At the Portfolio Construction Forum's Finology Summit (Finology is the intersection of finance and psychology), the recurring words were 'warmth' and 'trust'. To quote Theodore Roosevelt: "Nobody cares how much you know until they know how much you care." According to Herman Brodie of Prospecta (UK), the selection of a financial adviser or asset manager is influenced more by trust and sincerity than skill and intelligence: "... it becomes essential for clients to be convinced of potential managers' intentions rather than their abilities." Interesting view. For some of the best fund managers I know, only their mothers would describe them as 'warm' and 'caring'.

And at the SMSF Association Conference, held over four days no less, among the technical sessions the CGT relief for SMSFs was prominent. I doubt the Government realises when it introduces these rules that they then consume thousands of hours of expensive resources. A leading accounting consultant said the CGT issues "continue to confound and bamboozle" financial advisers. What about their clients!

Michael Kitces is a global authority on financial advice, and he gave two keynotes at the Finology Summit. In Part 1 of an exclusive interview, he explains where robo advice went wrong. Next week in Part 2, how financial advisers should offer their services. 

Many investors in global portfolios underestimate the impact of currency fluctuations, and Joseph Bracken and Robert Chapman show the results. Ashley Owen charts the dependence of our commodity companies on resource prices and China, while Matthew Merritt makes the case for dynamic asset allocation in multi-asset funds.

Two articles on planning for life at later stages: Julie Steed warns many people make mistakes in death benefit nominations, while Don Ezra explains how 'glide path' or 'lifecycle' funds work, especially into retirement.

This week's White Paper from Colonial First State Global Asset Management looks at US infrastructure, where many Australian managers are increasingly deploying your funds. For the latest in SMSF asset allocation and contribution trends, see the SuperConcepts report attached below, while BetaShares updates below on ETFs. 

Graham Hand, Managing Editor

Edition 241 | 23 Feb 2018 | Editorial | Newsletter

 

  •   23 February 2018
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Latest Updates

Investment strategies

Putting portfolios together when the world is falling apart

Global equity markets have grown more correlated due to globalization, but this trend may reverse which boosts the benefits of cross-country diversification.

Property

Housing belongs in the inequality story

Research highlights the significant impact of excluding housing income from income inequality analysis in Australia, arguing for the inclusion of imputed rent and capital gains to provide a more accurate picture.

Exchange traded products

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Economy

Why is Aussie inflation so stubborn?

Increasing our official cash rate contrasts with almost every other developed country in the world. Canada, UK, Europe, and USA, so far, have not reversed recent cuts while their inflation issues appear to be contained.

Strategy

How to stop Australian democracy going the way of the US

Around the world, democracy as a system of government is backsliding. After more than 50 years of liberal democracy in ascendancy, democratic progress plateaued around the turn of the century and is now going backwards.

Economy

Off-budget, but not off-the hook

Financial commentators await the federal budget with focus on debt and deficit. 'Off-budget' accounting alters the fiscal picture with unseen programs.

Economy

Shares rebound on hopes of war ending, but stalemate the likely outcome

Ashley Owen's abridged monthly snapshot uncovers what is front of mind for investors around the world and his view on the likely outcome of the stand-off in the Middle East.

Sponsors

Alliances

© 2026 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.