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Duration

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Duration: Friend or foe in a defensive allocation?

Duration is back. After years in the doghouse, shifting markets and higher yields are restoring its role as a reliable diversifier and income source - offering defensive strength in today’s uncertain environment.

Bond basics and four messages in the search for yield

Bonds have been strong performers over many decades and always play a role in defensively-positioned portfolios. There are some basic principles investors should understand such as the types of yield.

Red pill or blue pill? Navigating the matrix of fixed income

Government bond yields are so close to their lower bounds that they are unlikely to provide the returns of the past, nor act as a counter to falling equity markets. What are the investment choices?

Interest rate duration: how exposed are you?

Investors need to know the interest rate duration of their fixed income portfolios and its impact on the capital value of their portfolios ahead of potential rate rises.

Are we going through a 'bond market rout'?

We can expect a long bond yield rise of the magnitude we’ve seen in 2016 on average every three years, but that doesn't ease the pain of capital losses in the last six months.

Are you in fixed interest for the duration?

Despite the global bond duration index nudging an historic peak of 7 years, portfolios can still benefit from holding exposure to fixed interest investments as long as investors are aware of the impact of duration.

An idiot’s guide to bond funds

In response to a reader's question regarding bond funds, we asked our bond guru to explain, in layman's term, the workings of bond funds and what features to look for before investing in this asset class.

Fixed income investing when rates are rising

The topic of rising interest rates is heating up following recent increases in US long term bond yields. What does this mean for the value of your existing fixed income investments, and what are the bond alternatives?

A fixed interest guy’s take on share market volatility

Simple maths helps explain why the share market is so volatile. It’s not that it’s an irrational, casino-like beast that bucks and dives for no good reason. It’s a long duration market reacting to changes.

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How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

The investment mistake killing your returns

Retail investors face an increasingly complex product environment, but simplicity may be the most overlooked advantage in building a portfolio you can actually live with.

The strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

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