Portfolio Construction Archives | BetaShares
Port in storm_hybrid sell off

Port in the storm? Hybrids performance during market sell-offs

Reading time: 4 minutes Hybrid securities last year again demonstrated their ability to hold up well in the face of equity market volatility. Hybrids: impressive risk-adjusted returns The Investment Manager of our Active Hybrids Fund (ASX: HBRD) recently wrote a post discussing the strong performance of the hybrids market last year.  Indeed, the index of

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Quality pays in late cycle

Why quality pays in late-cycle periods

Reading time: 3 minutes History suggests that so-called “quality” companies, i.e. those with a high return on equity (or “ROE”), tend to be able to produce market-beating shareholder returns over time.  As this note details, moreover, quality companies have tended to especially outperform in “late-cycle” market periods, as investors have tended to gravitate toward companies

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currency 640x360

Currency Matters

Reading time: 3 min Currency, for most investors, has always been a topic that causes consternation. While many investors recognise the diversification value that international investments can bring, the fact that, by definition, such investments bring with them currency considerations adds an additional element to the decision. There is no doubt that managing the currency

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short funds ASX

3 Bears – learn more about going short with ASX-traded funds

This blog was updated in February 2019. With the longest bull market run in history maturing, it may be time to start thinking about strategies and solutions that offer protection from volatility and falling markets. A number of commentators and investment market analysts now believe that after significant market rises in 2017 and a mixed

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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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