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

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.

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

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.

Latest Updates

SMSF strategies

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

Planning

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Taxation

Income tax and bracket creep

Examining how five "tax cuts" stack up against bracket creep. Why offsets and incremental changes may do little to ease rising average tax burdens, compared to structural reform through indexation over time.  

Exchange traded products

The limits of a quality investing approach in Australia

Quality strategies shine globally, but Australia's concentrated market tells a different story. Limited diversification and sector dominance can constrain the defensive outcomes investors have seen in broader markets.

Investment strategies

Balancing opportunity and complexity

As private markets expand, investors face a growing mix of structures, a stabilising private equity cycle and uneven AI disruption. Fresh questions are being raised about where the real opportunities now sit.

Investment strategies

Why strong returns matter as much as generosity

As EOFY approaches, structured giving offers a tax-effective way to support charities, while allowing donations to grow over time and play a longer-term role in family wealth and legacy planning outcomes.

Investment strategies

The most important investment decision you’ll ever make

Stock picking often gets the spotlight, but research shows asset allocation explains the vast majority of long‑term returns. Understanding your mix of growth and defensive assets is the real key to investment success.

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.