CPD: Beyond the conflict, we see solutions

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It has been 50 years since the start of what is locally called ‘The Troubles’—a civil war in Northern Ireland that over a 30-year period lead to the death of over 3,500 people and injured or killed just under 2% of the population. Northern Ireland is where Johnny Russell, portfolio manager, Nikko AM global equity […]

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When sustainable practices yield sustainable profits

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A recent research study from Charles M. Williams Professor of Business Administration at Harvard Business School George Serafeim, conducted in collaboration with Calvert Research and Management, examined about 3,800 companies across 65 industries from 2012 to 2017. This new research, titled “When sustainable practices yield sustainable profits: The path to a strategic edge”, found that […]

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CPD: Blitzscale and hope – unicorns, IPOs and the fear of repeating the late 1990s

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The current hype about two-sided digital platforms, blitzscaling and winner-takes-most markets has fuelled a surge in IPO listings. It is perhaps unsurprising that this exuberance, especially when combined with inordinate liquidity, record levels of VC activity and multiple fundraising rounds, has often produced stratospheric valuations that are difficult to reconcile with free-cash-flow (FCF) fundamentals. As […]

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CPD: Circumventing ‘flat earth’ market thinking

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GSFM recently hosted fixed income specialists Payden & Rygel, who addressed advisers around the country. The presentation took a different view to the general bond market approach; instead it looked at how to avoid ‘flat earth’ thinking and related this to the world of investment. In other words, how not to follow the wrong crowd […]

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Negative bond yields: What does it mean, and what’s the end game?

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Since the beginning of this year, financial markets and expectations have turned decidedly bearish. Concerns about a Sino-US trade war, along with the so-called ‘inversion’ of the US yield curve, have heightened apprehension of a US-led recession. This is highlighted by the recent increase in negative-yielding bonds. As per the chart below, the amount of […]

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History tells retirees to protect equities – 10 major market falls in 27 years

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No one can predict the stock market, but history shows risk can and does erode retiree capital. Be they called “corrections, downturns or crashes”, the impact on capital can be significant. Brisbane-based Pentalpha Investment Management Limited has studied the number and severity of drawdowns of the S&P/ASX 200 Accumulation Index over the last three decades. […]

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CPD: Portfolio governance frameworks

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Financial advice practices face a myriad of decisions every day. One of the more important decisions is whether to insource or outsource portfolio construction at a financial planning practice level. While on the surface it may seem a reasonably simple binary decision, a significant amount of effort and expertise is required to get to the […]

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Growth capital, private investments’ value creator – now worth over $30bn

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Private capital investment is booming and last year the Australian industry reached a new high of more than $30 billion in assets under management. Growth capital investors will meet in Sydney this tomorrow (29 August) to discuss developments in the private investment sector and the value it creates for the Australian economy. Large private equity deals, […]

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Investors need to keep sharp eye on commercial property opportunities

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The beginning of a recovery in residential property prices should not deflect investors or self-managed super funds (SMSF) trustees from considering the long-term benefits of investing in commercial property, says Jonathan Street, CEO of the specialist commercial property lender, Thinktank. “Falling residential property prices over the past couple of years has been a good reminder […]

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Good financial returns may be hard to find

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“Intensified trade tensions and disappointment with interest rate cuts by the Fed could provoke a relapse in equity markets.” That’s the view of Principal Global Investors Chief Global Economist, Dr Bob Baur. Writing in his July monthly economic notes, Dr Baur argued that even if world growth picks up as expected, good financial returns might […]

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