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 strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Welcome to Firstlinks Edition 667 with weekend update

The downfall of the giant and three lessons for investors.

  • 18 June 2026

Why Australian shares are falling behind the world

Australia’s market boasts a long record of outperformance, but recent results tell a different story. Is the ASX’s lagging performance a temporary setback or evidence that structural forces will keep global markets ahead?

Latest Updates

Superannuation

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Retirement

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

Taxation

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Investment strategies

The surprising beneficiaries of the AI boom

While markets obsess over AI winners, a larger, more predictable growth engine is forming. A surge in electricity demand and infrastructure build‑out reveals the quiet, durable assets evolving beneath the AI story.

Superannuation

When losses in super become irreplaceable

The notion of 'you can afford more risk' assumes that losses can be replaced. Above a $2.1 million super balance the law says otherwise, and a worked example shows the refill takes decades, or never happens.

Retirement

Why I object to ‘hitting a number’ for retirement

Many investors dream of “hitting their number” and walking into retirement. But what if reaching that milestone is the moment they should be asking the tough questions? After all, there's a lot more to life than a high portfolio value. 

Planning

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

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.