Blog

Managing Risks: Women and Retirement

Date July 30th 2018
Author Lisa Kueng, Invesco
Category Blog

The gender disparity in Superannuation, for both retirement balances and years of retirement, is real. And women face a continued tougher retirement should current trends continue. As a Financial Adviser, how can you adjust your message in a way that’s enlightening, and not alienating for your female participants?

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Designs on retirement: Are CIPR's enough?

Date March 22nd 2018
Author David Hutchins, Portfolio Manager - Multi-Asset Solutions & Roy Maslen, Chief Investment Officer - Australian Equities, AllianceBernstein
Category Blog

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), but experience from other markets shows that the key to creating a successful retirement-income solution might lie in understanding, and allowing for, a range of factors beyond that of simple product design.

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Is now the time to invest in alternatives?

Date February 23rd 2018
Author Walter David, Alternative Investment Strategist, Invesco
Category Blog

Alternatives have fallen out of favour in an equity bull market fuelled by extremely accommodative monetary policies.

Today, as central banks normalise monetary policies and volatility is on the rise, alternatives are a good addition to portfolios, particularly for retirees who need to be aware of issues in regard to longevity and sequencing risk.

In Invesco’s paper, Walter Davis, Invesco’s Alternatives Investment Strategist, argues that now is the time to invest in alternatives, and that advisers and retiree investors should consider adding or increasing their allocation to alternatives as they review their portfolio exposures for the coming year

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My thoughts on the recent Wall Street correction

Date February 6th 2018
Author Anton Tagliaferro, Investment Director, IML
Category Blog

Last week Wall Street fell over 1,000 points, reversing the sharp rises of earlier in the month. Many are now asking if this is the start of a new trend on markets and what it all means for the Australian sharemarket.

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How distorted mortality beliefs impact savings behaviour

Date November 23rd 2017
Author Invesco
Category Blog

A person’s subjective perceptions about causes of death can be a driver of distorted survival beliefs. These distortions are meaningfully related to financial decision-making.

In an Invesco interview, we learn about Dr. Raphael Schoenle’s research on the connection between distorted mortality beliefs and savings behaviour.

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Carving up the pie: Asset allocation for retirees

Date November 6th 2017
Author Roy Maslen and John Taylor, AllianceBernstein
Category Blog

Retirees and other investors worried about financial market volatility have a range of low-volatility investment strategies to choose from, but how should they think about managing this risk from an asset allocation perspective?

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Should super funds use inflation as a benchmark for retiree returns?

Date October 11th 2017
Author Jeff Gebler, Milliman
Category Blog

Retirees have good reason to be wary of rising inflation. It can quickly destroy the value of a lifetime’s savings and with it, their quality of life. But that doesn’t mean inflation is an appropriate benchmark.

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Is the dream run of Australia's Big 4 coming to an end?

Date September 27th 2017
Author Michael O'Neill, Portfolio Manager, IML
Category Blog

The continued success and profitability of Australian banks over the last few decades, as well as recent large capital raisings, means that Australia's big 4 banks are now valued at over $400 billion and account for over 26% of the S&P/ASX 300 index.

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Longevity and sequencing risk: Using alternative investments to address pre- and post-retirement issues

Date September 18th 2017
Author Invesco
Category Blog

A common dilemma for investors, both institutional and individual, is how to generate attractive returns to fund a comfortable retirement (longevity risk) while at the same time avoiding damaging losses that could impair their retirement (sequencing risk).

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Big data finally reveals how retirees really live

Date August 30th 2017
Author Wade Matterson
Category Blog

The superannuation industry isn’t quite sure what a comfortable retirement is – even as it desperately works to help members achieve that elusive goal.

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The changing landscape of retirement income; here comes MyRetirement

Date August 22nd 2017
Author Challenger
Category Blog

Most advisers have heard that the Government is currently consulting on a framework for 'MyRetirement' (previously known as CIPRs), and are wondering what the reforms mean for them and their clients.

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Currency Matters: To hedge or not to hedge?

Date July 24th 2017
Author State Street Global Advisors
Category Blog

Fluctuations in the Australian dollar can cause changes to the value of your international equity investments, sometimes significant enough to put into question investors’ ability to achieve their goals, such as achieving a more stable return profile during retirement.

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Housing affordability: Not just a problem for the young

Date July 10th 2017
Author Jeff Gebler & Wade Matterson, Milliman
Category Blog

Sydney-based retirees who rent privately may have to save more than four times the amount of superannuation if they expect to live the same lifestyle as homeowners who own their homes outright, according to the latest Milliman Retirement Expectations and Spending Profiles report.

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Challenge conventional thought, there is yield in global equities!

Date June 29th 2017
Author Plato Investment Management
Category Blog

Retirees are often exposed to substantial income domestically, but in an increasingly global world where else can they look?

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Are return targets realistic in today’s markets? And are they relevant for retirees?

Date June 26th 2017
Author Invesco
Category Blog

For retirees, it’s important to be aware that correlations between equities and bonds change over time. Therefore, an asset allocation approach to investing carries inherent risks because equities and bonds can fall at the same time (i.e. there have been a number of periods historically when the correlation between equities and bonds has been positive).

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Mid and small caps can benefit retiree portfolios

Date June 8th 2017
Author Investors Mutual Ltd
Category Blog

Given the Australian sharemarket is heavily skewed towards the volatile Resource sector and high yielding yet mature Banking sector, retirees may consider a small allocation to the quality mid and small cap market to achieve proper diversification to good quality Australian listed companies.

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A rock and a hard place: income investing for Australian retirees

Date June 5th 2017
Author John Taylor, Portfolio Manager—Global Multi-Sector, AllianceBernstein
Category Blog

Retirees require one thing above all from their investment portfolios: a steady stream of income to cover their living costs and occasional unforeseen expenses. Given the importance of this, it’s a challenge for the retirement industry that investors don’t take more interest in income investing.

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Why the industry's “comfortable retirement” measures are wrong

Date May 18th 2017
Author Jeff Gebler & Wade Matterson, Milliman
Category Blog

The superannuation industry has placed an extraordinary emphasis on helping members achieve a “comfortable” retirement given it has so little information about what it actually means.

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Goal tolerance: When goals meet risk tolerance

Date April 10th 2017
Author Wade Matterson & Craig McCulloch, Milliman
Category Blog

There are clear reasons why risk tolerance drives the financial advice process.

It produces a simple number, which makes it relatively easy to recommend investment products while maintaining a compliant paper trail. But such a heavy reliance on risk tolerance can also produce significant problems.

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Alternative investments – helping retirees build wealth, preserve wealth and enhance current income

Date March 8th 2017
Author Invesco
Category Blog

“Alternatives are a bit like the [proverbial] tortoise, historically taking a slow and steady approach by generating consistent and less volatile returns than stocks. Stocks are more like the hare in that they have the potential to generate significant returns quickly, but may also experience sharp periods of negative performance.”

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