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

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.

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

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.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

Two months into retirement

A retirement researcher's take on retirement and her focus on each of her six resource buckets to stay engaged during the transition and beyond.

Latest Updates

Are the government’s CGT changes better for young investors?

New CGT rules promise fairness, but could young investors lose out? A practical scenario reveals how changes impact deposit goals, investment choices, and long-term wealth building for the next generation.

Retirement

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Investment strategies

AI can’t pick winning funds, but it can help you avoid losers

Machine learning has been touted a game changer investment management. But a new study overturns claims that AI can generate positive alpha in mutual funds. Here are some practical takeaways for investors.

Investment strategies

Inflation BIG picture: Boomers got lucky, next Gen not so much

A 150-year view shows inflation's upward bias, driven by shifting monetary regimes and war stocks. This marks an end to the low-inflation boom that enriched boomers and ushers in a higher-inflation era for younger investors.

Planning

Tax deductibility of financial advice improves affordability

A shrinking adviser workforce and rising costs are squeezing access to financial advice, just as demand surges. Expanded tax deductibility offers a modest but meaningful boost to affordability.

Retirement

Retirement in reality – 3 months in

A reflection on travel mishaps, smart decision-making, time pressures and rebuilding health habits. Three months in, here's how to navigate the surprising realities of life after work.

Taxation

Calculating the business cost of Australia’s new 'productivity tax'

Amid a national productivity crisis, new economic analysis finds the tax changes in the 2026 Federal Budget create Australia’s first-ever by design 'Productivity Tax', where young people will pay the biggest price.

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.