We offer a wide range of financial planning services in Perth. Recently, our parent company, AMP Capital, published its monthly “Insight Paper” on the AMP Capital company blog. The blog post featured three AMP Capital executives discussing how to develop a resilient equity portfolio. *
The discussion was based on research being conducted at AMP Capital with “building resilience in your equity portfolio” as a theme. AMP Capital shared the results on their blog to demonstrate what they are currently doing to “strengthen clients’ portfolios to make them fit for the future.” According to the article, technology is “disrupting” the practices of many businesses and the market is “becoming more competitive.” This makes it necessary for investment managers to “differentiate (themselves) through research.” *
According to Dr Ian Woods, who is the Head of Environmental, Social and Governance Research” for AMP Capital, investors need to be aware of the impact that policy and regulatory options implemented by governments have on their portfolios. Dr Woods elaborated, using climate change risk as an example. *
If a tax is being enacted on carbon emissions, for example, Dr Woods feels that investors need to ask if their stocks “have greenhouse emissions, and to what level.” He also advocates assessing the ability of the companies whose stocks they hold to pass the cost of compliance onto the consumer.” *
According to Dr Woods, it is important to do “due diligence” to build greater resilience within a portfolio. He feels that those who don’t measure the correct metrics are not managing risks within a portfolio as well as they perceive themselves to be managing them.
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Call the professionals at Approved Financial Planners. We have more than 80 years of combined experience providing financial services in the Perth market. Backed by the research and resources of AMP Capital, we offer a full range of financial services. To learn more or for an individual consult, call us today: 08 6462 0888.
*Insight Paper, AMP Capital. BUILDING RESILIENCE IN YOUR EQUITY PORTFOLIO. October 2015.