Category Archives: Asset Allocation approaches

Choose an appropriate benchmark

If you’re going to compare the performance of something against a benchmark, it is very important to make sure you’re using an appropriate benchmark. If not you risk making decisions based on incorrect information. This holds true for mum and … Continue reading

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How is your Self-Managed fund really going, and why should you care?

As January is a quieter month for many people, it may be a good time to review how your Self-Managed Super Fund (SMSF) is really going, not just for compliance reasons, but because it might actually lead you to have … Continue reading

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2016 – It’s time for standard investment nomenclature

One of the best ways for investors to manage risk is to determine their most appropriate asset allocation. How much they want to have in Growth assets, and how much they want to have in Defensive assets. But what is … Continue reading

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I ♥ Volatility (part 3 of 3)

Following on from my last blog on ‘Volatility’, one reason for setting a target asset allocation is to manage risk. Another is the potential to increase returns, especially in times of increased volatility. For example, Owen sets a target asset … Continue reading

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I ♥ Volatility (part 2 of 3)

Following on from our last blog on ‘volatility’, we used to have a “news story of the day.” Now we have a “news” story of the hour. This accelerating pace of “news” causes us to feel more and more anxious, … Continue reading

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I ♥ Volatility (part 1 of 3)

I love share market volatility. Do you know why? Because it means “Opportunity”. When you look at past returns, and I don’t mean just last year or even the last 3 years, I mean the whole twentieth century, you learn … Continue reading

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SMSF Investors go overseas

Traditionally, SMSF investors have fallen into 3 camps: They hold around 100% Australian shares, 100% cash or 100% property. The idea of managing risk through diversity has not been thought of as particularly important or attractive to many SMSF trustees, … Continue reading

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Are Fixed Interest investments Stagnant?

I presented to a share-market group 3 months ago. One of the things we discussed was that every investor has a decision about which Asset Allocation approach they want to adopt. “Do I want to set a target asset allocation, … Continue reading

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We need to talk about asset allocation…

The subject of “Asset Allocation” makes the eyes of many SMSF investors glaze over, but regardless we are going to march forward into this potentially boring territory. Why? Because in the opinion of many academics it can make the difference between … Continue reading

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Adaptive Asset Allocation (AAA) approach

An Adaptive Asset Allocation approach is where an investor follows perceived investment opportunities with no intention of maintaining a particular asset allocation. This type of investor has a very dynamic asset allocation. They make no attempt to re-balance their portfolio … Continue reading

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