Investing Money: March 2021

Wednesday, March 31, 2021

Why investing in bonds still adds up

Investments and personal finance insights from Vanguard Australia

1 April 2021

Hi everyone,

In this week's Smart Investing, Vanguard Senior Personal Finance Writer Tony Kaye builds upon last week's article on why bonds still matter by explaining the recent fall in fixed income prices and why negative returns should not be a concern.

We also take a closer look at dividends and distributions, and how they work in an ETF context.

Lastly, we have included our March economic and market update which details our global growth forecasts and asset class return projections.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

Why investing in bonds still adds up

By: Tony Kaye

Despite the recent fall in bond prices, investing in fixed interest securities still makes sense. Here's why.

Dividends and distributions

What's a dividend and what's a distribution? Find out the difference between the two and how they work when it comes to ETFs.

Vanguard economic and market update - March 2021

Economic growth levels across most developed countries are increasing but employment trends remain mixed. Read more in our March market update.

VANGUARD IN THE NEWS

Manager underperformance: Vanguard thinks you should pay less

Emma Rapaport | Morningstar | 19 March 2021

Should you pay less if an active manager underperforms? Vanguard thinks so. The US fund giant's first actively managed Australian fund has hit the market with an Australia-first fee structure which fluctuates to reflect performance. Vanguard Australia active sales development manager Ian Boater says its aim is for both the fund and the end investors to share in the pleasure and the pain of performance. "I think is really important for us that the investment manager also shares in any pain of underperformance, which we hope there isn't any," he says. "It's fairer for the investor as well."

To read more, please visit the Morningstar 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

Why bonds still matter

By: Robin Bowerman

Like an insurance policy that benefits a policyholder when something goes wrong, longer duration bonds are able to reduce the volatility of a portfolio during a market downturn.

COVID crash: one year on

By: Tony Kaye

How have investors fared since the 2020 crash and what are the lessons learned?.

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Tuesday, March 23, 2021

COVID crash: one year on

Investments and personal finance insights from Vanguard Australia

24 March 2021

Hi everyone,

In this week's Smart Investing, Vanguard Senior Personal Finance Writer Tony Kaye takes a look at how investors have fared since the 2020 market crash.

We also discuss why investment grade bonds still play an important role in any investment portfolio.

Lastly, our Chief Economist, Americas, and Head of Portfolio Construction, Roger Aliaga-Díaz explains why investors should understand the risks of investing in cryptocurrencies.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

COVID crash: one year on

By: Tony Kaye

It's now been one year since the COVID-19 outbreak sent global markets into freefall. How have investors fared since the 2020 crash and what are the lessons learned?

Why bonds still matter

By: Robin Bowerman

Like an insurance policy that benefits a policyholder when something goes wrong, longer duration bonds are able to reduce the volatility of a portfolio during a market downturn.

Digital currencies and investment portfolios

By: Roger Aliaga-Díaz

Learn why investors should understand the risks of investing in cryptocurrencies.

VANGUARD IN THE NEWS

Quantifying ESG can put a relevant number on businesses

Nicki Bourlioufas | Australian Financial Review | 17 March 2021

As money worldwide flows into sustainable investment funds, asset managers are launching new impact funds and repositioning existing portfolios with a deeper focus on environmental, social and governance issues. But how do investors choose with so many different products available? There are several ways ESG funds can be constructed and no universal ESG strategy exists, says Rachel White, Vanguard Australia's head of product strategy.

To read more, please visit the AFR 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.

Tuesday, March 16, 2021

Be alert to phishing scams

Investments and personal finance insights from Vanguard Australia

17 March 2021

Hi everyone,

In this week's Smart Investing, Vanguard Senior Personal Finance Writer Tony Kaye discusses investment 'phishing' scams and how investors can stay safe online.

Tony also takes a look at the coming changes to superannuation transfer balance caps and what it might mean for retirement income streams.

Lastly, we present Vanguard's February economic and market update, a forward looking report that details our growth forecasts and asset class return projections.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

Be alert to phishing scams

By: Tony Kaye

Sophisticated fraudsters are targeting Australian investors with investment 'phishing' scams. Find out what to watch out for so you can avoid being caught up in one.

Understanding the coming super balance cap changes

By: Tony Kaye

The transfer balance cap is a limit on how much super can be transferred into pension accounts earning tax-free income. On 1 July, this cap will be increased. What might this mean for your retirement income stream?

Vanguard economic and market update – February 2021

Vanguard's economic and market update for February 2021 details our outlook on the global economy as well as growth forecasts and asset class return projections.

VANGUARD IN THE NEWS

Vanguard hatches bold plan to crash the super party

Charlotte Grieve | The Age/SMH | 9 March 2021

A new superannuation product by US-based investment giant Vanguard that could shake the $3 trillion industry on its foundations is inching closer to launch. Structured much like an industry super fund, the $US6.7 trillion ($8.68 trillion) fund manager aims to have its highly disruptive product in the market by the end of the year.

To read more, please visit the SMH 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.