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 […]
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 […]
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 […]
“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. […]
“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 […]
By JASON TEH, Vertium Asset Management Chief Investment Officer As a Sydney-based fund manager I always look forward to presenting on adviser roadshows. Last week’s tour in Victoria was no exception, with a range of financial adviser briefings in Geelong and Ballarat – accompanied by Copia Distribution Manager Mani Papakonstantinos. Vertium Chief Investment Officer Jason […]
Are you the type that applies sunscreen before you get exposed to the summer sunshine, or do you prefer to wait a while and apply if you start to see pink? We’ll get to why that matters later. There’s an interesting dynamic playing out in the performance tables of Australian equity income funds. In an […]
If you thought building a retirement portfolio with interest rates at 0.75% was challenging enough, brace yourself for a new gauntlet being thrown down by our Canberra legislators. In a move that’s likely to change the way retirement portfolios are designed, the Federal Government is introducing a retirement income covenant that will require superannuation trustees […]
You’ve got to feel for those in our industry charged with constructing retirement portfolios for financial advice groups. It’s hard to recall a more challenging time in which to build a portfolio that can yield liveable income, while satisfying the risk criteria of the average retiree. And it’s not because the risk appetite of retirees […]
Financial advisers may need to consider allocating more to defensive equity strategies for retiree clients to defend their income, according to Vertium Asset Management, a Copia investment partner. In its June quarter research paper, the equity income fund manager compared the past seven share market corrections during global slowdowns since 1990 to the most recent […]
