The traditional method of protecting client portfolios from drift remains entirely valid. It’s ostensibly cheaper to run portfolios without managed accounts, but it does take more time to do so and probably takes on more risk.
The solutions to practice inefficiency might be completely foreign, but the challenges of service delivery have a habit of changing, so the methods employed to meet those challenges need to evolve in tandem.
Lazy portfolios can be overconcentrated, overdiversified, full of yesterday’s winners, devoid of structured asset allocation, full of misallocated positions or agnostic to markets and client expectations. All of this is happening more than it should.
It seems that while the older generations may be tilting towards simplification, the younger generations are looking for control and engagement. For financial advisers, this is a trend worth noting.
Clients have a right to know how advisers justify a fee of $15,000 per year when the investment income on a $1.5 million portfolio is only $75,000, says Drew Meredith. Maybe they should also have a hand in deciding how the fee is calculated.
The Australian sharemarket posted a positive finish to the week, gaining 0.4 per cent, but with the S&P/ASX200 still managing to lose 0.2 per cent across the five days. The technology sector was buoyed by NVIDIA’s massive result overnight, with data centre operator Next DC (ASX:NXT) adding 1.9 per cent and hitting another all-time high…
Australia may not have the Magnificent Seven tech stocks, but a heavy top end on the ASX means concentration risk is just as present, Atchison’s says. According to Australian Ethical, that puts the domestic small companies sector right in frame for investors.
Both Australian benchmarks fell 0.7 per cent on Wednesday, as weakness in the consumer staples sector, which fell 4.3 per cent, offset gains in technology, which added 2.2 per cent. Woolworths (ASX:WOW) fell 6.6 per cent after the company announced the departure of long time CEO Brad Banducci after a TV outburst, with the company…
The ASX extended its decline today, succumbing to a second consecutive session of losses. Investor sentiment was dampened by a weaker-than-anticipated outlook from biotech heavyweight CSL Limited and heightened anticipation surrounding key US inflation data. The benchmark S&P/ASX 200 closed down -0.2 per cent, with only four of the eleven industry sectors registering gains. The…
Both Australian benchmarks fell on Tuesday for the second straight day, with the S&P/ASX200 (ASX:XJO) down 0.6 per cent with the energy sector, up 0.4 per cent, the only highlight. The selloff was led by the technology and materials sectors, which fell 1.8 and 1.3 per cent, with Fortescue (ASX:FMG) down 2.9 per cent as…
