-
Vector Insights11 April 2019
Invest like the Future Fund
Russel Chesler, Director, Investments & Portfolio Strategy
The Grammy Award for Best Alternative Music Album is presented to recording artists for quality albums in the alternative genre at the Grammy Awards. Winners have included Sinead O’Connor, REM, U2, Nirvana, Coldplay and David Bowie. Hardly a list of unknowns. This leads to the question, when does alternative become mainstream?
The same question could be asked in investment circles. Some so-called ‘alternative assets’ should now be considered mainstream. Institutional investors have looked past the label for property and infrastructure but an ongoing miscategorisation as alternative assets could mean they are underrepresented in most retail investors’ portfolios.
Gold05 April 2019
Gold Finds Synergies as Macro Views Diverge
by Joe Foster, Portfolio Manager and Strategist
Read This NowThe merger mania of Q1 is subsiding with Barrick Gold and Newmont Mining’s joint venture to leverage synergies in Nevada. Meanwhile, consumer sentiment and consumption are diverging, which may suggest risks ahead.
Vector Insights28 March 2019
Most managers don't understand 'income'
by Michael Brown, Director, Operations & Finance
Read This NowRecent tax changes can have a significant impact on the level of income you receive from your managed funds. The first change to the tax laws is known as ‘AMIT’, generally pronounced ”ay-mit”, which stands for the Attribution Managed Investment Trust rules. The other, slightly older, change is known as ‘ToFA’, generally pronounced similar to ”tofu”. This stands for the Taxation of Financial Arrangements
You could be missing out if your fund manager hasn’t modernised for these changes. To find out there are only two simple questions you have to ask.
Vector Insights14 March 2019
Fractal geometry and finance: You're doing risk wrong
by Brad Livingstone-Foggo, Head of Marketing - Australia
Read This NowThe assumptions behind risk models such as the capital asset pricing model (CAPM) and modern portfolio theory (MPT) which underpin most standard market capitalisation based portfolios - are wrong.
Enter fractals. If you haven’t heard of them, that’s OK. An appreciation of fractal mathematics can help investors understand periods of extreme risk and to better consider how their portfolios are positioned.
Gold05 March 2019
Making Sense of the Mega Merger Mania
by Joe Foster, Portfolio Manager and Strategist
Read This NowBarrick’s takeover bid for Newmont would create an unparalleled super-duper major. While the bid’s success is still unknown, it does bring attention to the potential gains of unitising operations in Nevada.
Vector Insights28 February 2019
Tipping point reached for ETFs
by Arian Neiron, Managing Director and Head of Asia Pacific
Read This NowThe Hayne Royal Commission has brought forward a significant moment for investors. The ‘tipping point’ for exchange traded funds (ETFs) in Australia has been reached.
Vector Insights15 February 2019
A closer look at active share
by Arian Neiron, Managing Director
Read This NowWe recently wrote that despite the fees they charge Australian investors, some active Australian fund managers aren’t very active at all in terms of managing their portfolios, rather they are hugging their benchmarks. Some managers and researchers argue there is no correlation between high active share and high outperformance. In this Vector Insights, we test that argument.