Author Archive for: Lukasz de Pourbaix

Entries by Lukasz de Pourbaix

Bonds are still a diversifier

August was a weak month for equity markets with continued concerns over trade tensions between the US and China. While equities sold off bonds, ‘bond proxy’ assets such as property generated positive returns. For the year to the end of August Australian bonds, as represented by the Bloomberg AusBond Composite 0+ Yr Index, returned an […]

How to get the most out of your investment committee?

One of the continual challenges in running an investment committee is ensuring that it operates effectively and facilitates sound decision making. There are several ingredients that can assist in this process, but the most fundamental are the governance structures you have in place. At a minimum your investment committee should be governed by a charter […]

Who has a seat on your investment committee?

Lonsec has been working with financial advice firms for over 20 years and during this time we’ve observed a wide range of investment committee structures. The thing that stands out for us is the clear link between high-functioning investment committees and investment outcomes, with people and processes being the most essential elements financial advisers and […]

Consider this a test of your asset allocation framework

It’s a challenging time for asset allocators in the current environment, which has seen asset prices and market sentiment shift quickly on the back of a single tweet. Markets in July were generally strong across most assets, but August has seen a re-emergence of trade tensions between the US and China. More importantly we have […]

No reprieve for Europe’s long-suffering banks

The ECB’s announcement of further rate cuts was the last thing Europe’s banking sector wanted to hear. Since the depths of the eurozone crisis in 2009 and the sovereign and banking crises that followed, Europe’s banks have struggled to get back onto the right footing. Despite the introduction of new capital requirements and rules to […]

Stop writing value’s obituary

Any value manager will tell you that the past 10 years has been a challenging period. Not only have growth shares outperformed, but the dispersion in price performance between the two styles is currently the widest it’s been over this period. Looking at the performance of the MSCI value and growth indices (see chart below), […]

Will the RBA dig into its toolkit?

It’s been an eventful month for markets. The Coalition’s Federal election win, the RBA’s rate cuts and a continuation of the US-China trade tensions have all impacted markets during the month of June. Domestic markets reacted positively to the Coalition win with some of the pessimism surrounding the housing market subsiding. The RBA’s rate cut […]

Should retirees fear an RBA quantitative easing program?

The possibility of the RBA undertaking a quantitative easing program could have major ramifications for retirees, who may be forced to increase their exposure to equities if interest rates continue to spiral downwards. It’s been an eventful month for markets – the Coalition won the federal election in a surprise upset, the RBA cut rates […]

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