Beware of Yield Traps

Beware of Yield Traps

JASON TEH, Chief Investment Officer |   With interest rates at record lows, investors may be tempted to chase high dividend-yielding stocks to replenish lost income in their portfolios. However, chasing high yielding stocks can be a dangerous strategy that can potentially expose investors to the risk of significant share price corrections and poor total […]

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04, October 2021
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Design and Distribution Obligations

Design and Distribution Obligations

The Target Market Determination for the Vertium Equity Income Fund is available here. What are the Design and Distribution Obligations (DDO)? ASIC Regulatory Guide 274 (RG 274) requires Issuers and Distributors of financial products to take steps to ensure that retail clients are offered products that are likely to be consistent with their likely objectives, […]

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17, August 2021
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Navigating the Retirement Risk Zone

Navigating the Retirement Risk Zone

JASON TEH, Chief Investment Officer | When it comes to planning for retirement, hope is not a strategy. As more Australians transition from wealth accumulation to retirement, there are some key factors to consider as they enter the Retirement Risk Zone. The Retirement Risk Zone is a critical period in the financial life cycle, spanning […]

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21, April 2021
Investment Insight
4 Retirement Planning Mistakes – and How to Avoid Them

4 Retirement Planning Mistakes – and How to Avoid Them

JASON TEH, Chief Investment Officer |       Successfully preparing for retirement can present many challenges. Here are four common mistakes to avoid when selecting your retirement investment strategy.   Mistake #1 – Keeping your accumulation fund Accumulation funds may not be suitable for retirees, because their main objective is to deliver a strong […]

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21, April 2021
Investment Insight
Dot-com Zombie Parallel Universe

Dot-com Zombie Parallel Universe

JASON TEH, Chief Investment Officer |      “If you bought every company that lost money in 2019 … you’ll be up 65 percent so far this year.” -Joel Greenblatt, Masters in Business interview October 2020     Who would have thought buying loss making companies was the quickest way to make money over the […]

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29, October 2020
Investment Insight
Pandemic a case study in sequencing risk for retirees

Pandemic a case study in sequencing risk for retirees

One of the most common forms of risk for retirement portfolios is sequencing risk, and with the COVID pandemic creating volatility in financial markets, you don’t have to look far to see the impact of sequencing in action. Sequencing risk sounds complex but it really can be summed up in two words: bad timing. It’s […]

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05, August 2020
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Unintended Consequences of Free Money

Unintended Consequences of Free Money

  Jason Teh, Chief Investment Officer | 30 June 2020   How do people get richer during a recession? Free money! During past recessions, people become poorer as personal income falls when unemployment rises, which intuitively makes sense. However, using the United States as an example, the current recession has seen an anomaly where personal […]

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30, June 2020
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Dividend cuts: Options to sustain your income

Dividend cuts: Options to sustain your income

Income is one of the most important considerations for retirees. Once the days of earning a salary have passed, replacing it with a steady stream of income is essential. Unfortunately, relying on income from cash or fixed interest is getting harder as interest rates have experienced a seismic shift over the last decade. Naturally, the […]

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02, June 2020
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Bathwater Babies and Value Opportunities?

Bathwater Babies and Value Opportunities?

  “Buying cheap stocks is great, but buying good companies cheaply is even better” Joel Greenblatt Value investing has so much intuitive appeal. Who doesn’t like a bargain? However, in recent years much has been written about the death of value investing. Value investing is sometimes mistaken for a style that just buys cheap stocks. […]

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02, June 2020
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Pitfalls of Yield Chasing

Pitfalls of Yield Chasing

“We have delivered on our commitments and we are laying the foundations for future growth into the next decade”. These were former CEO David Thodey’s comments at Telstra’s (TLS) first half 2015 results. The market lapped up his comments and the company’s PE multiple hit 18x, a level not seen since the technology boom in […]

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28, October 2019
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