Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 14

Edition 14

  •   10 May 2013
  •      
  •   

Welcome from Chris Cuffe

Cuffelinks brings you the first in a series of interviews with three doyens of the global wealth management industry, starting with the 1990 Nobel Laureate Harry Markowitz. He tells Graham Hand about the magic moment when he realised that portfolio selection needs to optimise both risk and return, something we now take for granted.

Exclusive to our Newsletter subscribers, attached is the full interview where Markowitz also explains how his business delivers online retail advice and portfolio management. It's fascinating that the 85-year-old Markowitz and the 81-year-old Burton Malkiel (subject of a coming interview) are both heavily involved in new online advice businesses. A look into the future of advice? 

A few weeks ago, I wrote about the need for an independent and bipartisan group to provide ongoing opinion and direction about our superannuation system. The Government announced its plans for a Council of Superannuation Custodians, and it is welcome to read Graeme Colley adding his voice of support.

Jack Gray provides his usual thought-provoking insight into peer risk, a major issue for most large investment managers. The fear of straying too far from a market index pushes too many fund managers away from the active positioning and concentrated portfolios they should be paid for. Give me an opinionated manager who backs his skills versus an index hugger any day.

Andrew Gale believes the latent value of accounting firms is starting to be realised, especially as they spread their services into financial planning. Accountants have long been the dominant service providers to SMSFs due to their tax and audit roles, even for trustees who feel they do not need financial advice, and this makes them well-positioned to expand their businesses.

Finally, Graham reports on the release this week of APRA’s updated bank liquidity rules, which confirms favourable treatment of SMSFs versus public super funds. His article on the implications in the 2 April 2013 edition of Cuffelinks led to a spirited debate, but APRA has confirmed his view. Plus there’s a potential sting in the tail for some advice businesses that use Separately Managed Accounts for their clients.

Chris

Latest posts from Cuffelinks, 10 May 2013, Edition 14

  • The Harry Markowitz Interview, Part 1: Portfolio Selection Graham Hand
  • Bring on the Council of Superannuation Custodians Graeme Colley
  • Peering into peer risk Jack Gray
  • Why accounting may finally be sexy Andrew Gale
  • APRA confirms SMSFs as retail but public funds stranded Graham Hand
  • Has APRA also delivered a blow to SMAs? Graham Hand

Download PDF

 

  •   10 May 2013
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Latest Updates

Retirement

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

SMSF strategies

Who really loses from the SMSF borrowing ban?

The ban on borrowing to buy residential property inside a self-managed super fund was framed as closing a loophole for the wealthy. Yet ATO data suggests its effects may be felt more heavily on members with moderate balances.

Investment strategies

The investing rule that explains the next market crash

What if investment success depends less on picking the right assets and more on understanding the decisions of other investors? A principle borrowed from game theory offers a different perspective on markets.

Investment strategies

Gold: should you own the metal or the miners?

Gold is back in the headlines but investors may be asking the wrong question. Before deciding where prices are headed next, it's worth considering whether the investment you choose will deliver the outcome you're actually seeking.

Fixed interest

Global bonds markets are hiccupping

For decades, investors looked the other way as government debt ballooned. But a reckoning may be beginning. Bond markets are stirring and the consequences could reach far beyond markets into everyday life.

Property

Why investors are looking beyond traditional property sectors

A little-known corner of the property market may be quietly benefiting from powerful demographic and healthcare trends. Could this specialised sector offer investors something increasingly difficult to find: enduring demand?

Retirement

Retirement in reality - 6 months in

Is retirement really an identity crisis, or is something else at play? New insights challenge conventional thinking and reveal why some retirees struggle to fully embrace life after work.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 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.