Stick with equities to mitigate sequencing risk: Wingate
Retirees should stick with equities to mitigate sequencing risk and ensure consistent returns fund retirement, according to Wingate Asset Management chief investment officer, Chad Padowitz.
He said sequencing risk has come to the forefront as the Australian population ages and investors deal with the economy post-global financial crisis.
"The key challenge facing older Australians - and those who advise them and who manage their superannuation funds - is how to mitigate sequencing risk so that superannuation savings last long enough to ensure a comfortable retirement," he said.
Padowitz said traditional risk strategies such as changing asset classes or investment styles can have unintended consequences.
He said a diversified portfolio of Australian and international equities were a better bet for managing retirement savings, and retirees should find a way to generate consistent returns while lowering downside risk.
"The key point for investors is to look beyond the traditional approaches on retirement, and find a strategy that deals with future volatility and lower levels of expected return," Padowitz said.
Recommended for you
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
