Following is a list of Products articles published on PortfolioConstruction Forum throughout 2005...
This final DIRECTINVESTING Special Edition for 2005 looks ahead with some excitement to the possibilities in 2006. We examine key leading indicators of economic and investment strength around the world for 2006, and ask how the US will fare as it confronts some fundamental problems (and find that it is shaping to be one of the better value markets in which to invest). And we profile an innovative investment opportunity that allows Australian investors to access shares in Warren Buffett's legendary Berkshire Hathaway investment company. Full Story >
Yesterday, we covered the re-emergence of price volatility in key markets, as traders react to the proliferation of mixed economic signals. Is growth waning (maybe we should sell stocks) or is growth booming, leading to inflation and rising interest rates (sell stocks)? Full Story >
Watching the market react to economic data is really about watching the human beings that constitute the market react with fear and optimism to normally mixed messages. 2006 is shaping up to be the year of volatility... Full Story >
A week ago, we updated you on what the world is doing with gold, and reported predictions of gold reaching $US500/oz by Christmas. In fact, it's happened much sooner... Full Story >
In a move that can only be taken as a massive victory for hedge funds and their major promoters, the global investment banks, the Australian Stock Exchange has announced changes to the rules requiring disclosure of the identity of brokers behind buy and sell transactions... Full Story >
In September, DIRECTINVESTING covered the global rise in demand for gold, noting at that time that the spot price of gold had risen above US$450/oz and that December delivery gold futures were trading at US$470/oz. As promised, we're keeping you updated on what the world is doing with gold... Full Story >
Advisers that turned up to last week's FPA Conference on the Gold Coast were treated to a debate that is at the leading edge of a massive turning point in the investment management industry... Full Story >
Emerging markets have been out of favour with mainstream investors since the series of financial shocks in the late 1990s that culminated with the default by Russia on its sovereign bonds in 1997. So what has changed since then, to bring emerging market debt back into favour (with a number of new products being released that provide exposure to emerging market debt)? Full Story >
Those of you who saw the flimsy coverage of the Telstra strategic review in yesterday's mainstream media would have been hard pressed to gauge the scope and likelihood of success of the major growth initiatives announced by CEO, Sol Trujillo... Full Story >
The Australian Financial Review opens its Portfolio section today with the blindingly obvious statement that as baby boomers begin to retire, they are demanding higher levels of income from their investments. This statement comes at a time when the defensive sector is once again returning to the spotlight... Full Story >
Hybrid securities have been one of the most successful financial products since their introduction into the Australian market in the early 1990s. It is critical for investors to understand the impact that recent announcements by APRA (the regulatory body for Australian banks and insurers) will have on these instruments... Full Story >
With the Aussie stock market at or near record highs over the last few months, investors are increasingly confused about what type of equity portfolios they should be designing for their clients. Defensive stocks have made way for a profound switch to cyclicals (with resource stocks predominant). But as global inflation worries raise questions about the longevity and depth of the resource boom, style is again becoming a key direct investing issue... Full Story >
Against the backdrop of yesterday’s stirring win by Makybe Diva, there was another event that was at least as important - the Reserve Bank of Australia met and reviewed interest rates... Full Story >
As we took the Global Energy and Commodities Investing Forum around the country, one of the hot discussion points was total return investing and portfolio construction... Full Story >
Alan Greenspan's comments overnight to a Tokyo bankers conference echoed comments from the Reserve Bank of Australia last week about the threat of higher oil prices to the global economy. Both send a clear health warning that we are trending into the higher growth/higher inflation and higher interest rate environment... Full Story >
Last week, Delphi Corp, one of the key players in the US auto parts industry, defaulted on its bond payment obligations. The loss from Delphi has adversely impacted at least two CDOs known to Australian investors: Deutsche Bank's Nexus 3 and Macquarie's Generator Income Notes... Full Story >
The Reserve Bank of Australia has let the inflation genie take a peek out of the bottle with statements this week about the potential for rising interest rates to quell oil and resource price led inflation. What will rising oil prices mean for Aussie stock prices? Full Story >
Infrastructure funds develop and hold infrastructure assets - which are increasingly becoming available for private sector ownership as Governments privatise public sector assets as part of budget deficit reduction programs... Full Story >
One of the most frequent questions we're asked by advisers considering an IPO for a new listed product is "Will this product list at a discount?" The question applies to ordinary shares as well as listed alternative assets, and listed structured products. No doubt, the concern stems from the rash of listed investment companies (LICs) listed at the end of 2003, some of which continue to trade at a discount to their net asset value today... Full Story >
While the newer Step Up preference shares do not allow the investor to call for conversion and so do not contain optionality, traditional convertible hybrids do. Here we illustrate the value of embedded options in hybrids... Full Story >
As the great Australian icon Norman May used to say, the economic news this week is all about "Gold, Gold, Gold". Sure, Nugget May was talking about our Aussie Olympic athletes, but in the context of the market there's definitely some important guidance here for Aussie investors... Full Story >
What a reporting season we’ve just had! And with Australian GDP growth forecast to rise over the next two to three years, the trend in earnings growth is set to continue. Whichever way you look at it, there are some excellent opportunities emerging for Australian investors over the next 12 months… Full Story >
Having trouble explaining the tax effective benefits of LPT to clients? This introduction to LPTs overviews the tax concessions on distributions and capital gains… Full Story >
Private equity offers the promise of occasional outstanding returns – but with the significant risk that some private equity investments will end with no return. To encourage investment, there are a range of significant tax concessions available for investors accessing private equity through Pooled Development Funds (PDFs)… Full Story >
In each You Asked For It, we ask the public research houses to respond to topical portfolio construction questions of the day. This fortnight, it’s hedge funds. Are they an asset class? Should they be classified as growth investments, defensive, both or neither? Seven research houses responded… Full Story >
You’ve only got to open the pages of the financial media, or listen to the nightly news, to hear the sounds of the hedge funds bleating… Full Story >
If you’ve just been thinking about Telstra you may have missed the radical changes set to sweep the rest of the media industry that will bring growth opportunities probably not seen since financial services deregulation in the early 1980s… Full Story >
In this update: Listed property trusts again the most traded Australian LMIs however, infrastructure funds trading was relatively higher in proportion to market cap; two new LMI listings in August, and five planned for September… Full Story >
There are key asset classes and stocks within the Australian share market needing careful consideration – in part to ensure we keep away from, and in part to ensure that we don’t miss the boat. With signs of heat in the market, what do we make of all this? Should we be overweighting our Aussie equity exposure, or should we stay on the sidelines, with the risk of missing the fun? Full Story >
At this week’s PortfolioConstruction Conference, HFA Chief Investment Strategist Jonathan Pain will present a compelling review of the prospects for world equity markets – in fact, he'll present twice, firstly the case for a global equities bull market, and then the contrasting case for a global equities bear market… Full Story >
A common question from the many advisers who implement direct equities through model equity portfolios is how to justify putting a client into the underlying shares which may have risen steeply since the inception of the portfolio, or since its last rebalance… Full Story >
By and large, Australian listed investment companies continued to trade at a discount to net tangible assets, at 30 June 2005. Of the forty or so LICs on the ASX, only one was trading at a premium to pre-tax NTA… Full Story >
Since their introduction to – and initial acceptance by – the Australian financial planning industry, hedge funds have probably not delivered the returns promised. This article explores other reasons why hedge fund returns may have been lower than expected., the market conditions needed to generate returns, the current environment for hedge funds, and the outlook for sector... Full Story >
Thank you for your kind comments, at the International Monetary Conference in Beijing recently, regarding the state of the investment industry and the benefits of investing in skilled managers who actively seek absolute returns through a combination of diversified strategies. I particularly appreciated your comments as follows… Full Story >
Hybrids have been successfully issued since the early 1990’s, however, due to recent accounting changes, these types of products are no longer being issued. Their replacement, the Step Up Preference Share, has a problematic investment profile with high levels of equity risk, and is potentially unsuitable for inclusion in the fixed interest portfolio… Full Story >
Showing that protected equity and other innovative loan structures didn’t lose any of their popularity in the lead up to 30 June, the Macquarie Equinox 6 Trust and Macquarie Atlas Trust raised more than $100 million from Australian retail investors… Full Story >
After two years of strong Australian sharemarket returns, many investors may be contemplating adjusting their portfolios to lock in gains/minimise losses, and to reposition for what may prove to be weaker markets in coming months. Careful tax management can mean the difference between saving or losing much of each year’s pre-tax returns… Full Story >
What is an ETF, what are the key performance and cost differentiators compared to actively managed equity funds, and how can they be integrated into a portfolio? Full Story >
Merrill Lynch Investment Managers has launched the Merrill Lynch Global Allocation Fund (Australia), a single fund which invests in a mix of global equities, global fixed income and cash… Full Story >
In a core and satellite approach to portfolio construction, some of the benefits of including low cost, index-tracking products such as exchange traded funds (ETFs) in the “core” of a portfolio... Full Story >
In giving evidence to the Parliamentary Joint Committee on Corporations and Financial Services inquiry into Commonwealth Regulation of Property Investment Advice, the FPA expressed its concerns about the lack of effective regulation for property investment advice… Full Story >
Billed as a one-stop online solution enabling financial planners to obtain tailored direct equity advice, on-line broker ETRADE Australia Securities has teamed up with service provider investmentadvisers.com.au to provide discount broking services to financial planners… Full Story >
The Pensions Loan Scheme may offer a very real alternative to other home equity release products such as reverse mortgages where individuals are simply looking to top up their income, according to a recent Bridges Technical Services Update… Full Story >
Strong financial performance can be directly linked to good corporate responsibility, according to new research by AMP Capital Investors. The research breaks new ground - although extensive research in this area has been carried out in North America and Europe very little has been undertaken in Australia… Full Story >
