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Category: Risk Management

1-12 out of 186 results.

Unlucky for some: 13 investment risks to check

Risk isn’t something to be avoided altogether. To achieve returns beyond the government bond rate, some level of risk must be accepted. Assessing which risks to take and calibrating them is the investor's challenge.

Don't invest just for yield: the smarter way to generate income

Investors often overlook the capital risk in high-yielding stocks. It's better to ensure capital grows and investors can sell a portion each year to make up for the shortfall in income from dividends.

Are Australian bank boards fit for purpose?

Many of Australia's bank directors lack crucial skills in technology, operations and HR as part of a broader shortage of experience that is as important in dodging scandals as in business success.

The pitfalls of total return investing

The Total Return Investing approach is elegant, it makes intuitive sense and like many investment strategies, it backtests well. But low rates suggest the theory will not hold in future.

Managing risk using asset diversification

Investors should construct an ‘optimal portfolio’ that broadly falls on the efficient frontier. A ‘high growth’ balanced portfolio can deliver higher returns with lower risk than equities alone.

10 rules of thumb for investing during uncertainty

To avoid retreating from making investment decisions during uncertainty, investors are compelled to rely on 'rules of thumb' to guide them in decision-making. Here are many of the more popular commonly-used rules.

The business case for diversity and inclusion

Most companies recognise the benefits of employee diversity for better decision-making, but it's not only about choosing people from different backgrounds. There must be an effective means of aggregating views.

BBB worries seen from beyond the headlines

Bond markets are far larger than stockmarkets, and the BBB segments in the largest of all in the corporate market. Many analysts have pointed to potential weaknesses but it pays to look a bit deeper.

How can a super fund hold no cash or bonds?

Nobody revalues their own home each day in the way they revalue listed equities, but does that mean the value is constant? The daily unit price is calculated in some super funds using unlisted asset valuations.

Housing prices from black hole to blue sky

Housing prices and construction rose dramatically until 2016, and since then, low interest rates are helping home owners weather the storm of falling prices. How long until the blue sky shines again?

Welcome to the Great Australian Deleveraging

The biggest concern that many analysts ignore is that, after house prices begin falling, the savings ratio climbs, reflecting a lack of consumer confidence, leading to a rapid slowdown in the economy.

All that glisters: 3 tech ‘watch-outs’ for 2019

We may be close to 30 billion connected devices, offering unlimited investment opportunities, but a technology backlash is being fuelled by fear and uncertainty around three burning issues.

Most viewed in recent weeks

Great new ways the Government helps retirees

Last year's retiree checklist of services available was one of our most popular articles. There are some additions for 2021, and while it can take effort to set them up, they can pay off over the long term.

Four simple strategies deliver long-term investing comfort

A long-time advocate of the merits of generating income by investing in industrial companies rather than bonds or deposits checks his 'mothership' chart for the latest results, and continues to feel vindicated.

$100 billion! Five reasons investors are flocking to ETFs

It's not official, but Australian ETFs are clicking over $100 billion right now. It's a remarkable rise, leaving the traditional rivals, the Listed Investment Companies, in their dust. Why are they so popular?

A close look at retiree fears and expectations

Half of Australians retire early due to unexpected circumstances and within timeframes they did not choose, and two-thirds of pre-retirees worry about funding their retirement. But neither are the greatest fear in retirement.

Cut it out ... millionaires are not wealthy

The widespread use of 'millionaire' must stop. Inflation means that the basket of goods and services that cost $1 million in 1960 now requires $15 million. Today, millionaires are not wealthy.

Minister Jane Hume on SMSFs and superannuation reform

Senator Jane Hume presented at the SMSFA conference this week, and we reproduce the full transcript as a guide to what the Government is thinking on superannuation reforms as we head into the next election.

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