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14 July 2016
Interview with Peter Switzer

 

 

15 May 2016
Defining Active Investment Strategies

At a seminar this week I was asked to define what we mean by "active" management. Start with the alternative: passive investing or blindly following market indices is by design price- or valuation-agnostic capital allocation (given the assumption markets are generally right or "efficient"). Irrespective of how overvalued or undervalued an asset class may be, the passive portfolio accepts exposure to it.

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17 May 2016
Fixed-Income Performance Puzzle

In theory the most attractive solution to mitigating these hazards is focusing portfolios on "active" strategies that produce bona fide "alpha": that is, risk-adjusted excess returns that are unrelated to "beta" or the day-to-day movements in mispriced markets as represented by "passive" indices (the ASX/S&P200, for example). This is akin to finding a very cheap house – perhaps offered by a vendor who has to sell quickly because he or she has committed elsewhere—that rewards you with capital gains that have nothing to do with general house price inflation.

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31 August 2015
Big banks’ still short $40 billion of capital

There are several important take-aways from the Australian Prudential Regulation Authority’s excellent new study on the major banks’ capital. Winners are depositors, senior and subordinated bond holders, and the regional banks. Losers will likely be shareholders and investors in the majors’ hybrid securities.

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20 May 2015
Think-Tank Slides

In this SMI think-tank session the portfolio managers discuss why they believe:

  • interest rate duration risks are being under-estimated and could inflict significant capital losses on all portfolios, including those with exposure to equities, hybrids and housing;
  • the major banks are carrying too much financial leverage at a time when house prices are at record highs and interest rates at all-time lows (to say nothing of ultra-low provisioning against loan losses); and
  • the widely misunderstood triggers for the next economic and financial market cycle, which will likely be inflation, not deflation, that will in turn undermine the wildly popular "low rates for long" meme.

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18 May 2015
Lonsec and Atchison award SMI new ratings

The rapidly-growing, $295 million fixed-income boutique, Smarter Money Investments, has been awarded two new research ratings from Lonsec and Atchison Consultants for the Active Cash ("Investment Grade") and Higher Income ("Recommended") strategies.

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30 April 2015
Top Credit Strategist Joins Smarter Money Investments

The rapidly growing $290 million fixed-income boutique, Smarter Money Investments, (SMI) is
pleased to announce that it has hired one of Australia’s top credit analysts and strategists, Andrew
McLachlan, to boost its investment team. Andrew will be based in SMI's Melbourne office and
formally commence work on 25 May.

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25 March 2015
Interview with Smarter Money Investments Portfolio Manager

Interview with SMI Portfolio Manager

Watch an SMSF Adviser interview with SMI's Christopher Joye

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24 March 2015
ASIC uncovers investor bias to hybrid securities

Originally published in the Australian Financial Review

By Christopher Joye

To its immense credit, Greg Medcraft's Australian Securities and Investments Commission (ASIC) has undertaken laboratory experiments to determine whether punters suffering from "behavioural biases" are more likely to accept sales pitches to invest in complex "hybrid" securities.

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19 March 2015
Smarter Money Investments awarded $50m insto mandate and 5 star Morningstar rating received by Smarter Money Active Cash Fund

The boutique fixed-income fund manager Smarter Money Investments (“SMI”) is delighted to reveal that it has been awarded a $50 million institutional mandate, which lifts total funds under management to over $250 million.

As at 28 February 2015 the Smarter Money Active Cash Fund (Assisted Units) received a five-star Morningstar Rating, based on its assessed 3 year risk-adjusted performance within the Morningstar Peer Group - Australian Short Term Fixed Interest – Investment Trust, since February 2012.

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