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Diversification

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What now for SMSFs and hybrids?

Hybrids deliver returns comparable with equities over the long term with less volatility, which makes the risk-adjusted return and lack of correlation to equities an attractive characteristic in a diversified portfolio.

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.

Building portfolios: diversification without the heartburn

An efficient diversified portfolio might include unfamiliar assets with short-term volatility. It's important to focus on a comfort level to attain the long-term benefits of diversification in a portfolio.

Let's refocus the active v passive debate

The active v passive debate has deflected attention from a more important issue, a focus on managing to client goals. Plus active management has suffered relative to passive by the central bank-driven uplift of all assets.

Does fixed income diversify portfolio risk?

Investors shouldn't automatically assume the inclusion of bonds in a portfolio provides diversity against their equity exposure, as correlations can change in volatile markets.

Five fundamental investing lessons

At its core, successful investing is simple, but we have a knack of making it look complex. Here are five basic lessons that demonstrate key aspects of investing.

Managing downside risks in retirement with alternative assets

Alternative assets can enhance retirement portfolios through diversification, but their use requires skilled navigation and a willingness to compromise on liquidity to allow assets to realise their long-term potential.

Portfolio diversification: when a free lunch can cause indigestion

Investing across many different managers may not deliver the expected portfolio diversification if managers invest in the same way. Watch for diversification redundancy.

Preparing for the ups-and-downs of 2017

When markets deliver lower returns, investors need to save more, learn about investments and stay the course to achieve their retirement goals. Diversification is an effective way to weather uncertain times.

The opportunities in global equities for Australian investors

An article written for the Australian Shareholders' Association's October 2016 edition of 'Equity' on SMSF use of global equities and the wide range of opportunities readily available.

Diversification in thinking and practice

Most investors accept the benefits of diversification, but it can be problematic for some successful people who have made money in one business. For most investors, diversification leads to happier outcomes.

Opportunity knocks in global small caps

Global small caps have outperformed large caps over the last 15 years, and offer sector and country diversity for Australian investors worthy of a small allocation in a portfolio, modelled at about 5%.

Most viewed in recent weeks

Most investors are wrong on dividend yield as income

The current yield on a share or trust is simply the latest dividend divided by the current share price, an abstract number at a point in time. What really matters is the income delivered in the long run.

My 10 biggest investment management lessons

A Chris Cuffe classic article that never ages. Every experienced investor develops a set of beliefs about how markets operate.

Seven major trends affecting Australians in retirement

Retirement planning will become increasingly complex in the face of trends in home ownership, wealth dispersion, life expectancy, health and aged care costs, work patterns and pension dependency.

Lessons from the Future Fund for retail investors

The Annual Report from Australia's sovereign wealth fund reveals new ways it is investing in fixed income and alternatives. The Fund considers its portfolio as one overall risk position with downside protection in one asset class allowing more risk in another.

Four companies riding the healthcare boom

There are strong demographic trends in ageing and consumer spending and investing in the right healthcare companies can ride this wave as well as produce better health outcomes for people. 

Five reasons SMSFs are making asset allocation changes

Substantial changes are underway in SMSFs which until recently held a narrow range of assets dominated by cash, term deposits and Australian equities. Trustees have never faced so many choices.

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