CPD: Don’t be fooled by most ESG rankings – focus on materiality instead

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Are ESG investors being fooled? The Wall Street Journal recently ran an article about how big technology stocks dominate ESG funds. Tech companies are not usually associated with the big ESG issues like climate change, renewable energy, or diversity. So, are financial advisers and investors being fooled? Let’s consider whether the ESG investor is still

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CPD: Environment, social and governance risks are financial risks – when looking at ETFs

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Over the past 12 months many clients have been looking for funds where the role of environment, social and governance (ESG) factors in adding value to an investment practice have been highlighted.[1]  In addition to this, there has been a number of new Exchange Traded Funds (ETFs) in the market with a focus on ESG

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From Seat counts to cycle

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After four days of counting, the United States have a new President-elect in Joe Biden. However, it doesn’t look like the Democrats will be able to take control of the Senate, and so the market is preparing for a gridlock scenario. Equity markets have been strong on the back of the announcement (and through the

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CPD: A checklist when considering ETFs

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In the past 12-18 months we have seen an increase in popularity of Exchange Traded Funds (ETFs) in the Australian financial services market.  According to the 2020 Stockspot ETF report, in 2019 the ETF market grew 24%, with expected FUM in Australia to reach $100b by 2022. This increased interest has been driven by a

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Russell Investments launches GoalTracker – Australia’s first truly personalised super solution

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Russell Investments has launched Australia’s first goals-based superannuation solution, using mass personalisation and proprietary algorithms to make it possible for every Australian to access a tailored investment strategy based on their unique circumstances and retirement income goals. The launch comes as Russell Investments released research showing that a personalised approach to asset allocation and voluntary superannuation

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In challenging times, financial advisers still deliver value of 5.2% p.a. or more to their clients

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Russell Investments has released the results of its third annual Value of an Adviser Report, aiming to quantify the value that advisers provide throughout a client’s investing journey. The 2020 report estimates that advisers deliver value of 5.2% p.a. or more each year to their clients in a relationship that extends well beyond investment-only advice. The

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Dividends in Australian Shares – is the COVID lockdown lifting?

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What happened during reporting season? In many ways, FY20 reporting season was one of the most closely watched in recent memory as investors attempted to understand the true impact of the COVID-19 pandemic on company fundamentals. Going into the end of the financial year, expectations for earnings had been slashed significantly due to the level

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ESG investing latest fad or here to stay?

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There has been a proliferation of Environmental, Social and Governance (ESG) products hitting the market as product providers seek to meet the growing demand from asset owners and investors alike. Whilst more choice is good for consumers there is growing concern around ‘Greenwashing’ (overstating a product’s ESG credentials). How true to label are ESG investment

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The attractors and detractors of FY 20 – a year of lockdowns and zoom meetings

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FY20 will be remembered for lockdowns, Zoom meetings, and the fastest bear market in history driven by the global COVID-19 pandemic. For the 12 months to June 30 the ASX200 returned -7.68%; our yield-focussed Russell Investments High Dividend ETF (RDV) underperformed over the year and returned -15.83%[1] . This period includes a market selloff of

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Liquidity and debt – who’s buying?

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The COVID-19 global market rout has generated levels of market volatility not seen since the 2008 Global Financial Crisis. Central bankers have responded to the shock to growth by following essentially the same playbook: cutting interest rates to zero as rapidly as possible, followed up with quantitative easing and other programs to support financial markets.

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