Investment strategies

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How does High Frequency Trading affect my order?

What exactly is High Frequency Trading (HFT), and how does it affect the retail investor?

Public

EFTs deliver market power to the people

Simple, low-cost exchange-traded funds (EFTs) continue to see significant and sustained worldwide growth, although they remian a relatively new product category for many Australian investors.

Public

The low volatility anomaly - miracle or mirage

The “low volatility” or “low beta” anomaly seems to be the new Holy Grail in investment markets. This is the premise, well documented by studies of historical returns in most major sharemarkets, that low volatility or low beta stocks outperform high volatility/high beta stocks over the long term. One study of US stocks between 1968-2008 showed that stocks in the bottom 20% based on past volatility outperformed those in the top 20% by a compounded return of around 11.2% per year. 

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Growing your nest egg

From 1 July, your employer must now pay 9.25% of your salary into your nominated super fund. This increase will boost your retirement savings but you can help build your nest egg yourself by making extra contributions.

Member

How diversified is your equity portfolio

There can’t be many investors today who aren’t aware of the importance of diversification.  Even the simplest form of naïve diversification, which just entails spreading your equity investments over as many companies as possible, is beneficial.  Other more complex forms, such as modern portfolio theory, allow investment professionals to use diversification as a construct in managing portfolio risk.