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From the editor
This article appeared in the November 2012 ASX Investor Update email newsletter. To subscribe to this newsletter please register with the MyASX section or visit the About MyASX page for past editions and more details.
Spotlight on resources and smarter portfolio asset allocations.
By Tony Featherstone, editor
The November ASX Investor Update has two important themes: resource stocks and commodities; and asset allocation strategies, with special emphasis on exchange-traded funds.
Clime's Paul Zwi starts the issue with an analysis of BHP Billiton and Rio Tinto, which together account for about 15 per cent of the S&P/ASX 200 index and are core resource company holdings for many long-term portfolio investors. It's a useful report for investors who want to understand the challenges facing the diversified miners and whether it is time to buy them again.
Minerals expert Professor Allan Trench then considers the commodity price outlook in an ASX Investment talk video. Choosing companies that have exposure to the best commodities is usually half the battle in investing in the resources sector, and Trench shows what to expect in the year ahead.
Another ASX Investment Talk considers commodities from a different perspective: their role in improving portfolio diversification and returns. Portfolio expert, Dr Tony Rumble of BetaShares, outlines research on the benefits of using commodity exchange-traded funds.
The resources sector focus in this issue is well timed, with ASX hosting the inaugural Australian Resources Conference and Trade Show as this ASX Investor Update is published.
This issue's second theme, asset allocation, is arguably among the most important investment issues, and one reader has asked for more information on, based on our latest survey.
Several articles stand out. In typical fashion, Wealth Within's Dale Gillham provides simple, clear and no-nonsense advice on how any investor can build a strong portfolio. Vanguard's Robin Bowerman considers how ETFs can help your portfolio achieve a better return at lower risk, by improving its diversification. I commend Robin's piece to you.
The Barefoot Blueprint's Michael Kemp argues that investors must focus on a range of possible portfolio returns rather than only one. And Dixon Advisory's Nerida Cole considers asset allocation from the perspective of those saving for, or in, retirement.
I hope you enjoy this ASX Investor Update. The asset allocation and ETFs sections in particular provide plenty of food for thought for those seeking portfolios with less risk and lower costs.
As always, do not act on investment ideas in this issue without doing further research of your own, or discussing them with your financial adviser.
About the author
Tony Featherstone is consulting editor of ASX Investor Update, and a former managing editor of BRW, Shares and Personal Investor magazines.
The views, opinions or recommendations of the author in this article are solely those of the author and do not in any way reflect the views, opinions, recommendations, of ASX Limited ABN 98 008 624 691 and its related bodies corporate ("ASX"). ASX makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian financial services licensee before making investment decisions. To the extent permitted by law, ASX excludes all liability for any loss or damage arising in any way including by way of negligence.
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© 2013 ASX Limited ABN 98 008 624 691