Providence Wealth

New Look Managed Fund Reports

Providence — Tue, 13 Feb 2018 00:39:13 +0000

Our website has been updated to provide clients with even more insight into the Managed Funds that you may be invested in, or interested in.

Click on the Managed Funds page to view products by asset class. For each fund, you can watch videos, read about the investment philosophy, download reports and more.

As always, if you’d like to discuss any of your investments, please give us a call.

Providence in the Financial Revew: Time for Investors to Sell Long-Dated Bonds

Providence — Tue, 06 Feb 2018 01:52:00 +0000

Read Providence’s views in the recent article in the Financial Review (by Sally Patten, 5th February 2018); Time for investors to sell long-dated bonds.

“Our view for some time has been that global bonds are extremely expensive. We believe that the bull market is now over. We would want to be very cautious about owning government bonds, which are supposedly risk-free. On a mark-to-market basis, there could be some substantial falls,” Mr Patterson said.

Global Outlook and Strategy Quarter 1 2018: A Year of Change

Providence — Tue, 06 Feb 2018 01:27:43 +0000

KEY POINTS

Inflation expectations are likely to rise over the course of 2018
Global growth to remain strong
Higher bond yields and inflation will undermine elevated valuations
Final stages of the bull market in risk assets
2018 will be a year of change
Potential US recession 2019
Diversification, quality, relative value and overweight cash the focus

Click here to read the Global Outlook and Strategy 1st Quarter 2018: A Year of Change.

Or, to hear Grant Patterson’s discussion with Michael Ogg about the “Year of Change” watch this video here.

Activity Report – November 2017

Providence — Tue, 28 Nov 2017 00:42:57 +0000

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

Providence — Mon, 13 Nov 2017 02:48:57 +0000

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

Providence — Mon, 06 Nov 2017 03:03:48 +0000

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

Providence — Mon, 04 Sep 2017 08:05:21 +0000

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

Providence — Tue, 08 Aug 2017 00:58:31 +0000

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?

Providence — Tue, 18 Jul 2017 22:26:22 +0000

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

Providence — Tue, 18 Jul 2017 02:56:58 +0000

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.