CPD: 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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Hands off our Super: Education industry fund members support SG increase to 12 per cent

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New research by specialist education industry superannuation fund, VISSF, shows strong support for increasing the employer superannuation contribution to 12 per cent – even if that is delivered instead of a pay rise. Created over 60 years ago for teachers by teachers, VISSF today has over 8,000 members working in the education sector and over […]

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Infrastructure debt – the asset class of the moment

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Following AMP Capital’s record US$6.2 billion fundraise, which brought in commitments from 86 institutions in less than a year, Andrew Jones, Global Head of Infrastructure Debt, explains why infrastructure debt is attracting so much attention. After years in the background, infrastructure debt has found itself in the spotlight. Its return profile offers solutions that are […]

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ESG is moving into the mainstream but challenges persist

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State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT) has published major new research outlining the key push and pull factors for environmental, social and governance (ESG) principles adoption across 300 institutional investors globally[1] . Top push factors – drivers of ESG adoption – include a need to meet fiduciary […]

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Advisers should rethink “bucket strategy” in low interest rate environment

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Advisers need to rethink their “bucket strategy” in light of the historically low interest rate environment, and consider changes to cash buckets in order to generate more return for their clients, particularly retirees, says Stuart Dear, deputy head of fixed income at Schroders. “Many retirees rely on their allocation to cash to meet their day-to-day […]

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Zenith sector review: international shares – emerging markets and Asian equities

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Do investors gain emerging market exposures indirectly through Australian equities? What is the optimal emerging market exposure for an international equities portfolio? These are the questions Zenith seeks to answer in our 2019 Emerging Market & Asian Equities Sector Report. Given the strong historical relationship between Australian and emerging market equities, investors have traditionally found […]

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One in four big bank customers have left or intend to leave after failure to pass on rate cuts

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New research from comparison site Mozo has found that a whopping 70% of Australians do not trust the big banks, with half of that number losing confidence after their failure to pass on recent rate cuts. One in four big bank customers have left or intend to move to a non-four lender, equating to roughly […]

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CPD: Asset allocation – the driver of portfolio returns

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Modern Portfolio Theory, pioneered by Harry Markowitz in 1952, introduced investors to the risk/return trade-off. It focused on how investors can construct a portfolio to maximise expected return for a given level of risk. This allocation of money into investible assets has evolved over time to become an integral part of investing. This article will […]

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CPD: Estate planning – overcoming client objections

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Financial advisers are ideally positioned to initiate and project manage the process of implementing an estate plan. Unfortunately, there are those clients who don’t believe they need an estate plan or feel that having made a Will is sufficient to protection for their estate. In this article by Zurich, common objections – and possible responses […]

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Australian investors increasingly turning to fixed income ETFs 

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Bond ETFs are transforming how Australian investors access fixed income markets by bringing convenience and transparency to a historically hard-to-access asset class. At BlackRock, we see investors increasingly turning to fixed income ETFs for their rich diversity of exposures and good value. In June 2019, bond ETF assets topped $1 trillion USD globally. In Australia, […]

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