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Edition: 5

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Edition 5

  • 8 March 2013

A focus on important risks that are often overlooked, such as gearing, sequencing, diversified income and career-related. Plus the major disruptions and opportunities in wealth management.

The returns to expect from gearing into shares

How well must the market perform for a geared portfolio to deliver better returns than a normal, ungeared portfolio? Or put another way, if the market index rises or falls 10%, how much will a geared strategy change in value?

Sequencing risk and ways to manage it

Sequencing risk is the risk of experiencing poor investment performance at the wrong time, typically when the portfolio balance is at its greatest. Here are some hints to recognise and manage it.

Don’t spend your career further exposing yourself

We should consider how our investment portfolio interacts with other risks in our lives, including not investing in shares of the company or the industry you are employed by.

Inside the hidden world of diversified income

Diversified income funds have been extremely popular and have performed well recently, but ‘income’ is often not really income at all. If there is a reversal in some or all of the underlying factors, returns are at risk.

Dynamics, disruptions and opportunities

Significant market-shaping forces are in play which will disrupt many wealth management business models, but with change comes opportunity.

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Welcome to Firstlinks Edition 655 with weekend update

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