Tuesday, March 17, 2020

[Smart Investing] The power of diversification, discipline and long-term focus

Investments and personal finance insights from Vanguard Australia
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18 March 2020

Hi everyone,

We are living through volatile times and the impact of the coronavirus (COVID-19) outbreak is having on investment markets and in turn, on your investment portfolios can be unsettling. Vanguard understands how important it is for us to demonstrate our ability to continue managing your investments during these unprecedented. At this stage there is no material impact to our ability to manage your investments. Our Investment Management Group continues to trade, execute and process administration of client instructions despite working in alternate work locations. Our client service teams remain on hand to support you and ready to respond to your queries, although high call levels may mean longer than normal wait times.

This week we look at the importance of diversification and how it benefits your portfolio. Our Senior Financial Writer Tony Kaye discusses the things you should take note of if you're an SMSF trustee. Finally, we've included a video featuring our Global Chief Economist, Joe Davis, that outlines his thoughts on the coronavirus and the markets.

In the meantime, may you and your families stay safe and well during this period.

As always, feel free to email us with your questions or feedback.

Regards,

Robin Bowerman
Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

The power of diversification, discipline and long-term focus
By Robin Bowerman
Major market impacts like COVID-19 may not have been predicted but they are not unexpected. A major challenge and impediment for investors in achieving their long-term goals is having the discipline to stay the course.
Self managed super funds in the ATO firing line
By Tony Kaye
Is your self-managed super fund fully compliant with the regulations governing the operation of private funds?
Market downturns...and recoveries
Financial markets may move on from the coronavirus before data improve, Vanguard economists Joe Davis and Roger Aliaga-Díaz say.
Vanguard index chart
Vanguard in the news

Why Vanguard won't do gold ETFs

Financial Standard | Kanika Sood | 12 March 2020

"We have shied away from offering gold ETFs as they don't pass the test of generating a real return over time," Balaji told Financial Standard. "As a general rule, when we launch a product we focus on those that are diversified, liquid, can be offered at a low cost and is able to generate a real return (return over inflation) over time."

To read more, please visit the Financial Standard website.

Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

In case you missed it
Don't let a down market get you down
By Robin Bowerman
The share market has been bouncing around a bit lately, so this may be a smart time to prepare yourself with a few ideas on how to stay the course through the next share slide, no matter when it comes.
Does your mind help or hinder your investment success?
By Robin Bowerman
Of all the decisions we make, investments ought to be the most rational. However, as with so many things in life, our emotions often get in the way.
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