MB fund


Westpac sings from MB’s bearish Australia hymn sheet

Nice video here of Westpac’s Justin Smirk on the outlook for China, iron ore and the Australian dollar: Absolutely right. Westpac’s AUD fair value is already stretched and getting stretcheder: The MB Fund offers you the perfect vehicle to maximise returns via a temporary rise  in the Aussie dollar in its pure international equities portfolio of 50 hand-picked stocks:


Why does the MB Fund own some banks and miners?

I’ve had a number of discussions with investors over the last few weeks about investing in the Macrobusiness fund versus “do it yourself” investing and thought it worth aggregating the discussions into a post. Part of what I want to do with the MacroBusiness fund is to de-mystify portfolio investing. Many parts of investing are


Welcome to the MacroBusiness Fund

Some of you will already know but let’s make it official. The MacroBusiness Fund is open for business. This is the culmination of a decade long dream for some at MB so congratulations all around. Let’s begin with a description of what the fund is offering and how. There are six funds operating through the


Macquarie forecasts ASX 10000

Via the AFR today comes some serious chutzpah: Australia’s sharemarket could jump by as much two thirds over the next decade, underpinned by a booming superannuation sector and the nation’s status as a “growth haven”, according to a new report by Macquarie Research. Jason Todd, head of Australian macro-economic research at Macquarie, said Australia’s super


Why Australian fundies are failing dismally

Via the AFR: Australia’s most successful and well-known stock pickers are under pressure as active managers fail to perform and investors opt for the safety and certainty of passively managed index funds. More than three-quarters of active large cap equity funds in Australia underperformed the indices they are measured against in calendar 2016, according to S&P


Buy or sell the Syrian missile strikes?

The US missile strikes in Syria today create a considerable investment issue. On the bullish side, US intervention in Syria to help stop the descent into a failed state could stem the flow of refugee from Syria and potentially save hundreds of thousands of lives. Stemming the flow of refugees (the UN estimates there are


David Murray warns of 1890s housing crash depression

God bless David Murray. Somehow this goes virtually unreported today: The chairman of the government’s Financial System Inquiry, former Future Fund chairman David Murray, yesterday sounded a further alarm on the housing boom, saying a crisis on the scale of the 1890s great property collapse could not be ruled out. “What people should do is


Consolidation hands MySuper to the behemoths

There has been a recent spate of feather ruffling directed at one area of superannuation not known for high levels of excitement. The area is  MySuper and you can be forgiven for not knowing a lot about it. So why all the noise? – simply, some changes are coming to upset a typically cushy segment


Buy or sell the US dip?

No market goes up in a straight line, and so the US stock market was due a pull back at some stage. The question that you have to ask at this point is whether this is a typical market retreat following a 4 month almost straight line rise or is it something more sinister? The


Financial adviser’s undergo “remediation”

It’s been a big month for financial advice in Australia. Big 4 CEO’s have all returned from Canberra and now sit uncomfortably on their leather chairs in their corner offices. The advice regulator has continued the barrage with the timely release of a report admonishing the big instos for hiring each other’s bad apples. As luck


When will electric cars disrupt oil?

Yesterday we had a long look at solar and battery power and how they affect the electricity sector. Today we extend the battery analysis to the oil sector and look at electric cars. “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” Mark


Special report: Where to invest to win the energy race

Fossil fuels have a limited time as viable sources of energy. And I’m not talking about saving the planet or carbon taxes, simply economics. Coal, gas, oil, all have economics based on a “scarcity curve” – the more we use them, the deeper we need to dig to find more and more expensive they become


Want to buy the bigotry ETF?

A new ETF from Inspire in the US is trying to show that bigotry knows no bounds (hat tip to the FT): The methodology removes from the investment universe the securities of any company that has any degree of participation in activities that do not align with biblical values, which are: abortion; gambling; alcohol; pornography;


Desperate developers dangle insane commissions

An interesting article out yesterday revealed the largesse local developers are now showering on brokers and real estate “advisers” to help move unsold stock from upcoming off the plan apartment developments: Commission payments of up to15 per cent, free tickets to Adele concerts and luxury holidays to Greece are on offer to mortgage brokers and


Have you planned for lower income?

As covered today by Leith here and here today’s ABS release confirms what most of us suspect, that wage growth in the long term is looking pretty bleak. I won’t cross swords with the other fellas here on mega mortgage repayments and employments prospects but I thought I could chime in with some planning considerations.


Fundies have a shocker

Fund results out today from S&P are not good for active fund managers: The majority of Australian actively managed funds in all categories (equity and bonds) underperformed their respective benchmarks. This is the first time this has occurred across all categories in a calendar year since the first SPIVA Australia report was published in 2009.


Will the Snapchat unicorn bring you riches?

Snapchat is listing shortly, probably early March. It’s a unicorn, a start-up with a valuation over $1b. It’s going to be valued at lots (USD25b?), and it loses money, which makes it hard to value. In the end, it’s a lottery ticket. Late last year there was a research paper out suggesting that the investment


Is financial advice worth it?

AMP released their results last week, bringing with it news that it was reducing its adviser numbers across the network. This comes as no surprise given the results but does continue the trend of adviser number reductions across the big players in the market. See here and here. So what’s going on? Normally the fast


Introducing Tim Fuller, super guy and new MB blogger

Find below the first post by Tim Fuller, MB’s new super blogger and planning specialist at the MB Fund. Tim found MacroBusiness after a stint in the Pilbara and liked what he read. He has since jumped from constructing gas plants to constructing no nonsense financial advice for retail and sophisticated investors. Having spent a


Chanticleer channels the MB fund

Shout out to Chanticleer this morning in the AFR (channeling the reasoning behind the MB fund) and talking about the problems with financial advice: … it provided a stark reminder of why the integrated advice model of the major banks cannot survive. Argo and WAM Leaders stand for the sorts of things banks struggle to


When should you panic about Donald Trump?

Mainstream media is in a panic about Donald Trump. Financial markets are pretty calm. So, what would it take to spook financial markets? US consumers / US small business owners are the key My take is that the small business sector is the key driver of US employment, the US consumer is the key driver


Markets have priced in rainbows but no rain

There is a lot of sunshine and rainbows in economic stats recently: Morgan Stanley’s leading trade indicator: Consumer confidence is generally up in the US:     And in Europe:     With US construction still strong:   The dark clouds? Not many. Rising interest rates and a rising US dollar choking off any recovery


For richer or poorer

Yesterday it was all about the car that your investment manager drives, today it is who their parents were: Research by Dr Oleg Chuprinin, from the University of NSW, and Denis Sosyura, from the University of Michigan, shows that investment managers who grew up in poor families made two percentage points higher returns each year,


Compensating for something?

Picking an investment manager is hard. Not only is the difference between luck and skill hard to distinguish between, but you also have to worry about changes in the investment manager’s circumstances over time. Maybe he (it is usually a “him”…) worked hard in early years, but becoming rich and splitting time between his new beach


Coming to a city near you

As part of rolling out a fund, we are going to start a series of MB seminars around the country, and we are looking for input as to the best location.   The rough format will be a few hours talking investment themes and strategies on a Mon/Tue/Wed night. Myself, David & Leith will be