Author Archive for: Veronica Klaus

Entries by Veronica Klaus

With rates close to 0%, why bother with fixed income?

According to a report in Bloomberg recently, while Vanguard data show a portfolio with 60 equities/fixed income mix returned an average 9.1% a year from 1926 to 2020, JP Morgan Asset Management recently estimated it will return just 3.7% over the next decade. Why? In a world where 85% of developed-market government bonds are yielding […]

Why some value managers missed out on the value rally

Traditionally value managers used the book-to-price ratio (B/P) as their standard value metric. The B/P ratio served value managers well back when economies were largely industrial. However, as the developed world shifts to a service- and knowledge-based economy—thanks in part to the catalysing effect of COVID-19—the B/P ratio has become a less meaningful metric and […]


Asset definition inconsistency a blight for advisers

Veronica Klaus Head of Lonsec Investment Consulting spoke on a panel at the Professional Planner Researcher Forum in Sydney last week. Veronica discussed the inconsistency and confusion around asset class definitions, which is one of the biggest issues confronting the industry. The way in which assets are defined as growth, defensive, etc. often lacks transparency and […]

Why following the winner might make you a loser

An all too common mistake in investing, is to simply back last year’s winner. On the face of it, it seems appropriate to follow what worked last time and all too often investors pile into the best performing asset class of the last year in the hope that success will be repeated. However, as the […]

How does a crisis really affect markets?

Investors are constantly warned of an impending crisis in financial markets with the resultant damage to asset prices. Yet while a crisis can have a severe impact on markets, investors who avoid herd-like selling can often ride out the slumps. For active and contrarian fund managers, such periods of disruption can also present opportunities. The […]

Designs on retirement: Are CIPR’s enough?

The federal government has taken a step toward providing better retirement outcomes for Australians with the appointment of an industry panel to advise on the development of Comprehensive Income Products for Retirement (CIPRs). Its brief is to help frame the government’s plans to require superannuation trustees to design and offer appropriate income products for their […]

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