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Graham

Robert Merton on retirement incomes and Jane Austen

Nobel laureate Robert Merton wants us to focus on the income that will sustain us in retirement, even Jane Austen understood this. And he has a surprising proposal to help with longevity risk.

Our industry has a problem

A study recently published by Towers Watson claims that many in the investment industry focus on looking after intermediaries at the expense of clients. And we're obsessed by short-termism and chasing alpha.

Tim Hodgson: how a profession became an industry

Following from the article "Our industry has a problem", Cuffelinks interviewed Tim Hodgson, the author of the study into investment industry intermediaries. He doesn't like much of what he sees.

Peter Costello’s swipe at super funds

Extracts from Peter Costello's talk to super fund executives, where he criticises their self-interest and poor handling of the super policy debate. And from a prior speech, he backs Nick Sherry's call for simplicity.

Deposit guarantee bill passes but not for super funds

The government guarantee on deposits has finally been legislated and based on information released by APRA you'd be forgiven for assuming that superannuation bank deposits would be covered. Not necessarily.

Latest Updates

Superannuation

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.

Economy

Central banks need higher inflation targets

In a shift away from solely targeting low inflation, central banks are considering raising inflation targets to combat economic challenges, but face potential drawbacks and conflicts in policy implementation.

Exchange traded products

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.

Latest from Morningstar

Alpha isn’t dead. You’ve just been measuring it wrong

New research shows smarter portfolio construction—not new factors—is the real edge in the hunt for alpha. However, finding it requires a fundamentally different mindset.

Investment strategies

The diversification illusion: why 'balanced' portfolios may be exposed

Many 'diversified' portfolios are increasingly driven by the same narrow set of forces. As concentration builds beneath the surface, understanding how portfolios behave - not just how they’re constructed - is critical for investors.

Investment strategies

The case for staying the course in credit

Rising oil prices and inflation pushed Australian yields higher. Markets expect further tightening, but weaker growth may reverse rates. Locking income and maintaining duration is a sound strategy for widening credit spreads.

Investment strategies

One risk after another

Investors often focus on front-of-mind risks, reacting to each headline event without considering long-term impacts. Cass Sunstein and Timur Kuran define this as an "availability cascade," affecting financial decision-making.

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