Lonsec helps advisers tackle conflicted advice

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Leading research house and managed account provider Lonsec will work with financial advisers seeking to transition from conflicted advice models and introduce a greater degree of independence in their investment decisions. Lonsec is offering to acquire in-house managed portfolios from advice licensees to enable them to take advantage of best practice governance principles and Lonsec’s […]

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Why following the winner might make you a loser

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One of the most common investment strategies is to back last year’s winner. All too often investors pile into the best performing asset class of the last year in the hope that success will be repeated. But as the below table shows very rarely do asset classes consistently outperform and backing last year’s winner could […]

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Australian markets are becoming complacent

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Volatility has died down since the dramatic spike witnessed in February 2018, but a return to near-historic lows should raise eyebrows among investors. The S&P/ASX 200 VIX Index, a measure of implied volatility in the Australian share market, closed last week at 9.79 points, falling back below double-digits and a far cry from February’s high […]

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It’s time to drop the FAANG label

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In the wake of Facebook’s plummeting share price, there has been much talk of the so-called FAANG shares and their earnings performance. But investors should not be misled by the market’s bucket mentality, which has a tendency to group together certain stocks, often for superficial reasons. The recent round of earnings announcements shows that the […]

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Investors risk exposure to ‘glittering junk’

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Investors sticking to the traditionally high quality, conservative part of global bond markets may be surprised to learn that they are more exposed to riskier credit now than prior to the GFC. Unlike high quality AAA-rated bonds, a BBB bond is only one or two downgrades away from ‘high-yield’ or ‘junk’ status. When the economy […]

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Traders driven to distraction during World Cup

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Don’t bother calling your broker when the World Cup is on the TV. Analysis of share volumes shows there is a noticeable dip in the number of trades during World Cup matches in which the market’s national team is playing. Happily, most World Cup matches this year have been scheduled during European evenings or weekends, […]

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Beware the dividend honeypot—the lesson of Telstra

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Shareholders burnt by Telstra’s dividend cut and spiralling share price should be wary of high yield shares with attractive dividends but shaky fundamentals. Telstra sparked an exodus of investors after announcing a cut in its dividend from 15.5c per share to 11c, with the challenges facing Australia’s major telco suddenly made palpable to mum and […]

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Governments are poor forecasters

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With the Federal Budget for 2018-19 handed down, Lonsec takes a look at some time-honoured truths of government budget forecasting. Governments tend to overestimate Governments have a track record of overestimating receipts, especially when the economy is growing. But the latest budget may have bucked the trend, with company tax receipts estimated to be higher […]

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Lonsec upgrades Quay Global Real Estate Fund to ‘Recommended’

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Lonsec has awarded a ‘Recommended’ rating to the Quay Global Real Estate Fund. The fund is an unhedged global property securities strategy managed by Quay Global Investors which aims to deliver a return of CPI plus 5 per cent a year over five plus years. Since inception[1] the Fund has delivered a total annualised return […]

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Lonsec upgrades DNR Capital’s Australian Equities Income Portfolio to ‘Recommended’

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Boutique Australian equity investment manager DNR Capital has been awarded a “RECOMMEND” status by Lonsec Research Pty Ltd (Lonsec) for the DNR Capital Australian Equities Income Portfolio. The portfolio’s performance record has been strong, outperforming the S&P/ASX 200 Industrials Index by 2.5% p.a. since its December 2007 inception The concentrated, ‘long only’ Australian equities portfolio […]

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