Increasing weightings to European Equities

By Grant Patterson, Managing Director, Providence Independent Investment Advisory Providence is increasing their weightings for clients to European Equities funded from US Equities.  In an environment of stretched equity market valuations European stocks appear better value than their US counterparts.  European equites are trading on 16x mid cycle earnings vs. US equities at 17.4x peak […]

Providence’s Due Diligence on NABPC

The following real example from February 2015 written by Carlo Queddeng – Providence Portfolio Analyst, demonstrates Providence’s ongoing approach to thorough review of investment opportunities as they arise. The Opportunity February 2015 – National Australia Bank have recently offered a new $750m IPO of capital note securities (ASX code: NABPC) which falls in line with […]

Lonsec Research Supports Current Providence View

A recent paper from Lonsec Research: “Volatility On The Rise“ highlights the current view held by Providence, namely; Heightened volatility within investment markets, and Divergence amongst major economies. The implications of this are as follows; Ensure solid diversification across asset classes and styles, Prefer active management over passive, Watch out for market disruption in credit regarding […]

The Best and Worst Performing Asset Classes

We love this Asset Class Returns chart from Goldman Sachs Asset Management. It shows how today’s swan can be tomorrow’s ugly duckling. A-REIT’s are looking a little stretched on this basis.

Fresh Investment Thinking Relevant for Australian High Net Worth Investors

Grant Patterson, Managing Director at Providence recently participated in Whiteboarding 1.0 – a project conceived by Brookvine Pty Ltd to rethink an investment model for High Net Worth and Family Office Investors. Bringing together a group of experienced Chief Investment Officers (CIO’s) and Advisors to High Net Worth / Family Offices to participate in a half-day of […]

“Robo-advisors” lack critical human empathy

An article in the Sydney Morning Herald, 8 October 2014 suggests that financial advice has a 58 per cent chance of being replaced by artificial intelligence in the form of Robo-advisors. The article explains that “automated investment services build customised portfolios of exchange traded funds which passively track market indices, and then monitor and rebalance them on an […]