The period from March 2009 until 2018 spoilt many investors. Volatility was lower than normal, and most sharemarkets enjoyed strong and steady returns as they recovered from the GFC. Investing seemed easy because risks were reduced thanks to the support from Reserve Banks around the world; they lowered interest rates which pumped money into the economy.
Are you looking to target higher returns? We have recently worked with DMG Financial Planning to create a second investment portfolio that aims to achieve higher returns by taking on a greater level of risk.
Our January meeting provided an opportunity to examine the managers we use under extreme pressure of market falls, whilst keeping in mind their long-term performance. This led to us deciding to exit two of our holdings.
The recent market falls have been challenging for all investors. We have approached this challenge by using it as an opportunity to test our portfolio in these trying circumstances. Some managers have delivered on our expectations and a few have disappointed.
The Investment Committee met on 24th October. This was timely as the previous period had been volatile and the main share markets had suffered large losses. We focussed on the risk and again doing our best to protect capital as much as we can.
A focus of our meeting this week was on the impact of rising interest rates in the USA, historically there has been a reasonably strong link between interest rate increases and falls in financial markets. It doesn't happen everytime, but there is a strong correlation for it to warrant our attention.
At the May Investment Committee Meeting, Bart Dowling, our Portfolio Manager presented his research on recessions. There is no need for alarm and we don't expect to see one in the short term here or overseas.
We’ve recently seen an increase in interest amongst our investors around alternative investment, particularly around what they are and why we use them. So we’ve put together this handy guide to help answer the most common questions.
The is meeting involved a review of analysis of the asset allocation of our portfolio and a comparison with other funds. This means reviewing how much we have allocated to cash, fixed interest, property, shares and alternatives.