5 June 2017
Over the past week Australian shares were 0.7% higher. Shares in developed countries were 1.2% higher with the US market up 1.0%. Shares in emerging markets were 0.2% lower. The Australian dollar was 0.1% lower at 74.43 US cents. The 10 year bond yield in Australia was flat at 2.41% while in the US, the 10 year bond yield closed 0.09% lower at 2.16%. The oil price lost 4.3% to 47.70 US dollars per barrel.
We’ve all enjoyed the benefits of pooling. Carpooling saves fuel and passengers usually help the driver stay alert. Or maybe you’ve pooled with your work colleagues to buy a multi entry lotto ticket. While the prize money is shared your odds of winning are higher which is fine if the prize is a large one! And when you were a child you may have pooled with your friends to buy a large bag of sweets rather than pay the higher costs for the small packets.
The benefits of pooling come from scale. This is because life isn’t linear. At Mine Wealth + Wellbeing we pool members’ funds and use the fund’s size, over $10billion, to your advantage. This scale benefits members by allowing us to provide a large range of services at competitive prices.
From an investment perspective this happens in a number of ways:
- We use our fund’s size to minimise the fees we pay external managers. This is like you and your mates buying a jug of beer rather than four schooners.
- Size opens up many investment opportunities. Investments such as commercial property, private equity, infrastructure and hedge funds have large minimum investment amounts. We can open those doors through scale and construct better, more diversified portfolios.
- Investment research is costly and time-consuming and putting a portfolio together requires specialist skills. Even if an individual has these specialist skills to perform due diligence and construct portfolios, they simply don’t have the time! After all, we work, we have family and friends and we need our holidays.
Our highly skilled investments team work hard, assessing managers, examining their performance, monitoring strategies and finding the best way to put investments together to maximise the scale benefits of investing with us.
Dr Sean Anthonisz
Senior Quantitative Analyst (Asset Allocation)