Analysis

A unique series of studies by Credit Suisse Research has shown that the performance of family-controlled listed companies around the world is so superior to other companies that they should be considered a separate asset class. Don’t laugh. Even if it’s not called an asset class, the investment case is compelling. Credit Suisse Research, which…

Big super funds have completed another good year, despite the “lower-for-longer” general predictions, with the average balanced fund returning 10.3 per cent. Frontier Advisors has analysed what the top performers did and didn’t do. Using the SuperRatings ‘SR 50 Balanced Index’ as its universe, Frontier’s David Carruthers and Ian Yun made the following observations from…

APRA believes that there is “a lot of scope for money to be lost” through the operational due diligence process, or lack of it. But ODD, as it is known, has taken on a new importance for asset owners and funds managers, with or without APRA’s view. Craig Roodt, head of investment risk at APRA,…

The standard procedure of firing losing managers and hiring winning managers based on their past three-year performance leads to losses, according to Rob Arnott at factor specialist manager Research Affiliates. This is not a new insight. What follows, though, is. “Even though it may sound counterintuitive, a comfort zone is a dangerous place to be.” -Mary…

One of the biggest concerns facing both policy makers and super fund trustees – a concern they at least share – is what to do about the adequacy problem for the bulk of retirees over the next 20 or more years. Australia’s retirement incomes policies and products are inadequate. The OCED had some tips for…

The good work big super funds are doing is not getting through to stakeholders, be they members, regulators, the Government or other commentators, because of the perception that they are too accepting of the status quo. A new paper by specialist implementation manager Parametric suggests the common stakeholder perception is that super funds are too…

The big geopolitical issues facing the world will take a prominent place for discussion at this year’s annual conference of the Investment Management Consultants Association (IMCA Australia), taking place in Sydney and Melbourne on September 19 and 20. Michael Thawley, a former Australian ambassador to the US and head of the department of Prime Minister and Cabinet,…

There are various studies – one a regular one by Ray Dalio when he used to write many of the Bridgewater Associates newsletters, focusing on US elections – that show political decisions, even wars, are not as influential on market directions as normal cycles and animal spirits. Well, maybe this time it really is different….

Comment by Greg Bright They have given big super funds sufficient, and reasonably clear, warning over the past couple of years but APRA last week finally said it was calling in the trustees of a number of super funds to question them on their governance, past performance and likely future performance. If they don’t stack…

Carol Geremia believes investors are coming around to recognising the performance problems associated with short-termism. She likes to quote Warren Buffet: “Time is the friend of the wonderful company, the enemy of the mediocre.” And, at least in part, the growing recognition and adoption of ESG principals and strategies are helping open investors’ eyes to…

Despite facing an onslaught of technologically-driven change “incumbents, not innovators, look poised to benefit” in the investment management game, a new World Economic Forum (WEF) report claims. The WEF report, titled ‘Beyond Fintech: a Pragmatic Assessment of Disruptive Potential in Financial Services’, says the last few years have seen some “profound changes to the investment…

While progress is being made in most countries with the development of new renewable energy projects, competition is increasing, government subsidies are coming down and returns are moderating, according to a study by Frontier Advisors. In a global comparison Australia does not rate particularly well for returns from either wind or solar. We also seem…