Investing Money

Tuesday, March 24, 2020

[Smart Investing] A different form of distancing

Investments and personal finance insights from Vanguard Australia

25 March 2020

Hi everyone,

I hope you're staying safe and keeping well during this unprecedented period.

This week we discuss why you should never catch a falling knife, and suggest that perhaps extending your social distancing practices to include your portfolio balance could help temper some of the emotional impacts of watching the market's volatile swings. Vanguard's Senior Financial Writer Tony Kaye also examines what we're seeing in the Australian ETF market and busts the myths around ETF liquidity issues. Finally, we've included a video of Tim Buckley and Greg Davis, our global CEO and CIO respectively, discussing the protocols that we have in place across the globe to ensure that we can continue to manage your investments during these difficult times.

If you have been trying to reach us over the phones, we thank you for remaining patient with us. As you can imagine, coronavirus issues have kept the phone lines very busy. We are committed to serving you as promptly as possible so please try our call-back option (where available) or online services. More details here.

Until next week.

Regards,

Robin Bowerman
Head of Corporate Affairs
Vanguard Australia

A different form of distancing

By Robin Bowerman

Market timing – particularly at times of severe stress and uncertainty – is akin to trying to catch falling knives as markets whipsaw around. So perhaps there is another form of social distancing we can practice – keep a healthy distance from that account balance until markets have returned to something resembling normal service.

The pulling power of ETFs

By Tony Kaye

The sharp plunges on global equity markets over recent weeks, driven by the coronavirus pandemic, have triggered widespread investor concerns. Yet, in the midst of the strong volatility on markets, it seems many retail investors are taking a longer-term perspective and viewing the current events as an opportunity.

How Vanguard prepares for the unexpected

Vanguard's CEO and CIO discuss the protocols in place to ensure business continuity and strong service for clients.

Watch video

Vanguard in the news

Australian bond ETFs blow out on discounts

ETF Stream | David Tuckwell | 17 March 2020

As coronavirus panic has sent markets into turbulence, popular bond ETFs have started trading at prices below their fair value, known as discounts. According to a Vanguard spokesperson, these discounts tend to be short-lived and investors with a longer time horizon will be unaffected.

"ETF pricing during periods of extreme market volatility may involve…pricing dislocation as the valuations on [bonds] are changing rapidly…This is a short term influence…[and] there is no indication that this is a significant issue for investors with a sound investment strategy in place across a suitable time frame," they said.

To read more, please visit the ETF Stream 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

The value of a financial adviser

By Daniel Reyes

It is particularly during these periods of market volatility and ongoing uncertainty where investors see the value of an adviser's alpha.

Choosing your investment strategy

By Aidan Geysen

Investors are faced with a significant and growing challenge. Let's focus on the two key actions that can easily be implemented within your portfolio.

Client Services

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Tuesday, March 17, 2020

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

Investments and personal finance insights from Vanguard Australia

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
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.

Watch video

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.