Invest
Investors warned on vulnerability in portfolios
In an effort to protect themselves against volatile markets, a global financial services company has said SMSF trustees should look to bonds to diversify their portfolios.
Investors warned on vulnerability in portfolios
In an effort to protect themselves against volatile markets, a global financial services company has said SMSF trustees should look to bonds to diversify their portfolios.
According to Credit Suisse’s Australian Investment Strategy Research Report June 2014, SMSFs continue to remain “grossly underweight” in bonds.
“This is obviously because fixed income instruments are not as readily assessable to SMSFs as other assets are,” Credit Suisse said.
Credit Suisse added that it has been suggested cash is high yielding enough to replace bonds in an Australian portfolio.
“[However] we think cash is a poor replacement for bonds. Bond returns are usually negatively correlated with equities which help balance portfolio returns, especially during brutal equity bear markets,” it said.
“An allocation of 50 per cent Aussie equities and 50 per cent 10-year Aussie government bonds has lost money in only three of the past 34 years.”
Credit Suisse said that meanwhile cash tends to have a zero, or even a small positive correlation with equities, so it does not provide the same “portfolio relief” during stock market sell-offs.
“As retirement age looms closer we imagine SMSFs would not want their portfolios overly exposed to a single asset, our concern is that important investment lessons like this are often learnt too late,” Credit Suisse said.
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, according to research. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
