Portfolio Construction Archives | BetaShares
Fixed Income: No longer the forgotten allocation

Fixed Income: No longer the forgotten allocation

Jonathan Baird, Investment Specialist, Western Asset Compared to global peers, Australians tend to have a very low allocation to fixed income (bonds) in their investment portfolios, preferring to allocate to cash and term deposits. Yet bonds can be a reliable and stable income investment, providing a relatively high level of capital stability alongside meaningful diversification

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Invest in human progress

How to invest in human progress

Forget about fake news – have you heard the good news?  In 1990, 35% of the world’s people lived in absolute poverty.  By 2015, just 9.6% did.  By 2015, more than 1.25 billion people were lifted out of extreme poverty, which is roughly 138,000 people per day. The Brookings Institute calculates that half of the

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What type of stock may Warren Buffett like?

What type of stock might Warren Buffett like?

Financial research suggests that so-called “quality” companies, i.e. those with high return on equity (or “ROE”), tend to be able to produce market-beating shareholder returns.  But as this note demonstrates, it’s not enough to simply rank companies based on their current ROE – rather consideration must also be given to the likely sustainability of their

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How to get income and global diversification in one trade

Many investors are aware of the benefits of international diversification.  Unfortunately, adding global equity exposure to your portfolio also usually involve an income sacrifice, as dividend yields internationally generally tend to be lower than in Australia.  As this note will demonstrate, however, it’s now possible to have your income and international diversification too, thanks to

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Sharemarket exposure with reduced risk – is it time to consider managed-risk investments?

In light of fairly significant sharemarket falls in recent weeks we’ve heard plenty of our clients query where the opportunities for portfolio construction may lie in asset classes other than equities or otherwise discuss potentially overlooked equity exposures. It seems that a number of our clients are adjusting their portfolios to more of a ‘risk-off’

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The Great Rotation: is it time to consider Value?

The recent pull back in global equity markets has tended to fall most heavily on growth orientated stocks, which have also run the hardest in recent years.  Given the maturing global equity bull market, this suggests it might be opportune to consider a tilt towards more value orientated stocks, as is possible through fundamentally-weighted indexing

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Has yield come at the expense of performance?

Have high yield stocks been a drag on your portfolio returns?

Australian investors have likely recently felt the effects of market volatility, which has put downward pressure on many large cap Australian companies that offer relatively high yields. For investors with a concentrated single stock portfolio, this recent performance trend highlights the danger of relying on a small number of high yield stocks for retirement portfolios.

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