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    Vector Insights

    Brett Liddell, CFA

    Despite rising share markets, 2016 was a bad year for small-cap fund managers, indeed, for most fund managers. But the smart ones succeeded.


    Vector Insights

    by Russel Chesler , Director, Investments & Portfolio Strategy

    The concept of 'market capitalisation' was devised for its ease of calculation. It became 'the benchmark' to quantify share market performance not because it was the best method, but solely because it was the first. More and more investors are questioning the wisdom of tracking market capitalisation indices that have fundamental flaws for investing purposes.

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    Vector Insights

    by Brett Liddell , CFA

    A key factor to understanding how ETFs work is understanding the process of creating and redeeming units in the fund. It's how ETFs gain exposure to the market and is the secret weapon that enables ETFs to be less administrative, less costly and more tax efficient for investors than unlisted managed funds – all factors which ultimately benefit investors.

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    Vector Insights

    by Russel Chesler , Director, Investments & Portfolio Strategy

    The first step to building a robust investment portfolio is determining the right asset allocation. It was determined in 1986 in the Financial Analysts Journal1 that asset allocation was responsible for more than 90% of a diversified portfolio's return pattern over time. In other words, if we concentrate efforts on getting asset allocation correct, a portfolio has the greatest chance of success. In today's investing landscape with so many products and services on offer factors such as cost, transparency and simplicity are also of great importance when making investment decisions. All of these factors are supporting the growth of model portfolios comprised entirely of exchange traded funds (ETFs).

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    Vector Insights

    by Arian Neiron , Managing Director

    Fees and costs have always been a hot topic when it comes to investing and it’s getting hotter as we approach 1 October 2017.  This is the date ASIC’s regulatory guidance on fees and costs disclosures (RG 97) comes into full effect. 

    Many fund managers are worried about the changes as it will require them to quantify the full costs of managing investments.  For some the true costs will be significantly higher than they are currently disclosing to investors.  RG 97 intends to ensure full transparency and comparability between products.  Understanding the total cost of investing will benefit consumers.  Here we give them a head start. 

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