1. New Benchmark Asset Allocations – LBW FS will be utilising the Mercer Strategic Asset Allocations as the new benchmarks for client portfolios. The major change will be the incorporation of an extra investor risk profile. The new risk profiles are as follows:
· Secure (100% defensive assets)
· Conservative (73% defensive assets)
· Moderately Conservative (52.5% defensive assets)
· Balanced (32.5% defensive assets)
· Growth (12.5% defensive assets)
· High Growth (2.5% defensive assets)
It was necessary to review our tactical asset allocations for each of the asset classes, with minor changes agreed upon.
2. China – Following a recent presentation from a Chinese equity analyst, concern was raised over exposures to China, Asia and emerging markets. Current tactical exposures were still considered to be appropriate, though this may change in the future.
3. Alternative Assets – Discussion was held over current exposures to alternative assets and whether this needs to be raised. Major hindrance to increased exposure is the lack of funds in which we have confidence. Greater focus to be applied to researching quality and performing alternative asset fund managers.
4. Retail Bond Offerings – Government treasury notes and bonds may begin to be offered to retail investors and may be listed for easy transacting. This situation should be monitored and assessed to see whether such securities would be of benefit to clients.
Click here to see our latest Tactical Asset Allocation.
LBW Financial Services Pty Limited is a Corporate Authorised Representative of Wealthsure Pty Limited (AFSL Lic. No. 238030)
LBW Financial Services Pty Limited is an authorised representative of Wealthsure Pty Ltd, AFSL 238030, ABN 93 097 405 108. The information contained within these articles is of a general nature only. Whilst every care has been taken to ensure the accuracy of the material contained herein at the time of publication, neither the author, authorised representative, nor licensee will bear responsibility or liability for any action taken by any person, persons or organization on the purported basis of information contained herein. Without limiting the generality of the foregoing, no person, persons or organization should invest monies or take action on reliance of the material contained herein but instead should satisfy themselves independently of the appropriateness of such action.
