Activity Report – November 2017

As part of our ongoing commitment to being a trusted partner for our clients, Providence reviews a number of products each month, searching for investment opportunities that fit our clients’ individual requirements. Being an independent company, each opportunity is assessed solely on its merits regarding risk and return.

True to Providence’s promise of transparency and independent analysis, we share the basis of our decisions with our clients in this Activity Report.

Global Outlook & Strategy 4th Quarter 2017: Inflection Point

Key Points:

  • Inflation at an inflection point
  • Synchronised Global Growth in place
  • Extended valuations in most asset classes
  • Australian economy vulnerable to consumer shock
  • Distinct risk period ahead
  • Diversification, Quality, Relative Value and Overweight Cash Position the focus

Click here to read the Global Outlook and Strategy 4th Quarter 2017: Inflection Point. 

Alternatively watch Grant Patterson’s Global Outlook and Strategy summary in this short video.

Why Indices Lead Investors Astray

We thoroughly enjoyed reading Andrew Clifford’s thought piece on “Why Indices Lead Investors Astray”. Here we share the article from the Platinum Trust Quarterly Report, for our clients to read about the true value of investing and the ‘distractions’ of indices.

Why Indices Lead Investors Astray

Providence view in the Australian Financial Review

There are useful lessons from 30 years of performance of various asset classes, in this article by Sally Patton (Australian Financial Review, 2nd September 2017).

Grant Patterson, Managing Director of Providence is quoted within the article, sharing his views. “There is an argument that higher equity valuations are justified as a result of the much lower discount rate. However, given that bond yields are a function of economic growth and have been manipulated due to unconventional monetary policy, justifying higher valuations based purely on this is dangerous,” he says.

 

Global Outlook & Strategy 3rd Quarter 2017: Stem the Tide

Key Points:

  • Global growth remains buoyant despite pockets of uncertainty
  • Valuations in some asset classes are very extended
  • Australian economy is sending mixed messages; outlook uncertain
  • Geopolitical concerns remain elevated
  • Remain with elevated cash and well diversified

Click here to read the Global Outlook and Strategy 3rd Quarter 2017: Stem the Tide 

Alternatively, you can view Grant Patterson, Managing Director, sharing the key messages of the Global Outlook and Strategy in the video below.

Providence Whitepaper – The Rise of Passive Investing: Fee Saving or Increasing Risk?

This Whitepaper discusses and compares active investment management versus passive management.  The perennial argument of whether active managers can outperform the index usually reappears towards the top of investment cycles. This is a result of active managers underperforming their relevant benchmarks when markets are driven by momentum and also the fear of missing out on a rising market. We are once again at this juncture after the recent poor relative performance of the average active fund manager over their relevant index.

Read Providence’s Whitepaper  – The Rise of Passive Investing: Fee Saving or Increasing Risk?

Definition of Independence

We believe there is a conflict between providing advice and offering financial products in which we may have a pecuniary interest.

At the time of our establishment in 2000, we were one of the first truly independent investment advisory firms. Independence remains one of our core values.

Now, we are one of the few firms that meets ASIC’s strict criteria of independence; Providence has it’s own financial license, we accept no commissions from financial product providers and we are free of conflicts of interest  (see SMH article by John Collett on this topic here).

Our clients can be sure the advice we give is always honest, professional and unbiased – our only allegiance is to our clients.

True Bearing – Update for the Providence Network

Welcome to True Bearing – Publications and Updates for the Providence network.

Our latest issue, True Bearing: May 17  features our latest Global Outlook and Strategy and our Quarterly Activity Statement.

Business First Magazine featuring Providence

We were recently interviewed by Jonathan Jackson, Editor of Business First Magazine about our approach to client relationships.

As we state in the article “Investments are investments, but our focus is not only on the protection and preservation of our clients’ wealth, but also in-depth personal relationships that lead to better wealth management and inter-generational longevity.”

Click the image for access to the full digital issue of Business First Magazine, or click this link to read the feature on Providence.

If you have any questions about our approach to investing, or our client relationships, please give Grant Patterson a call on (02) 9239 9333.

“This is no time to be overweight bank stocks as levy looms”

 

The Financial Review published an article on Wednesday regarding bank stocks (Australian Financial Review, Wednesday 17th May 2017). Providence participated in the debate and have given their view.

Please click here to see the full article.

If you have any questions about our approach to investing, or our client relationships, please give Providence a call on (02) 9239 9333.