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Issue: October 2010
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Michael Lannon's Commentary
The markets continue to rally around the world despite the fact that the outlook for the global economy is still uncertain. With the Australian dollar at its current levels investors should reconsider their international exposure as now might be a good time to invest in non-Australian assets. The key to managing your portfolio risks is to have a diversified portfolio. One way to enhance your diversification is to add assets that are not directly correlated or non-correlated to your existing investments which are often referred to as alternative assets, it is a topic I explore in this month’s educational article. Alternative investments like hedge funds or absolute return funds are often believed to be high risk investments but the irony is that while hedge funds have been seen as risky, used wisely they can actually reduce risk in your total investment portfolio. I hope you find this article informative.

Commencing this month we are running a special promotion aimed at helping you save on investment fees. Many of our investors are still paying unnecessary entry fees and adviser service fees on existing investments when they can remove them with a single form. In recognition that procrastination is a powerful force, we are offering a $50 Myer gift card when you take advantage of 2020’s fee rebates before 10 December. Please see this month’s special offer for more details.

Behind the scenes there have been some exciting changes at 2020 which we hope to share with you in the coming months. We will be looking to bring you an improved range of products and services that builds on our tradition of assisting self directed investors achieve their wealth creation goals. Watch this space.


Michael Lannon







Michael Lannon
Founder
Market Update: Global sharemarkets rallied
 
Global sharemarkets rallied in September on expectation of another round of monetary stimulus by the US Federal Reserve. In Australia, domestic economic news continued to show the strength of the Australia economy.

Read the latest Market Updates
Featured Fund: Capital growth or security? Or both?
colonial first state logo
Introducing the Colonial First State CapGT - Aspect Series 1 which seeks to achieve significant long term growth and at the same time protect your investment at maturity through a capital guarantee from the Commonwealth Bank^.

CapGT will access the Aspect Diversified Programme, a managed futures program developed by Aspect Capital Limited, one of the world's largest and most experienced managed futures managers.

Limited offer closes 29 October 2010
More on the Featured Fund
Education: Using alternative investment strategies to reduce portfolio risk





Absolute return funds can be a valuable addition to your portfolio in times of volatility or market uncertainty. In an article compiled by Michael Lannon, we look at how allocating a portion of your investment portfolio to alternative investment products like absolute return funds can lower the overall risk in your portfolio and reduce portfolio volatility.

Read: Using alternative investment strategies to reduce portfolio risk
Standard & Poor's re-rated funds
Below is a list of recently fund re-ratings by Standard & Poor's. See our website for complete fund re-ratings:

Fund
Rating change
Invesco Australian Smaller Companies Fund
5star Not Rated
Advance Australian Smaller Companies Fund
Not Rated
ING OneAnswer BT Smaller Companies Trust Not Rated
Alphinity Australian Share
On Hold
 
Alphinity Concentrated Australian Share
On Hold

Find out what the star ratings mean
See all recently re-rated Managed Funds
See all recently re-rated Super Funds
See all recently re-rated Pension Funds
Latest Offers
Special offer: 100% entry fee rebate with bonus $50 Myer Gift Card
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2020 DIRECTINVEST is offering a $50 Myer gift card when you nominate 2020 as your broker on any existing investments not currently held with 2020.

Simply complete and return our simple one page form before 10 December 2010 to be eligible. Terms & Conditions apply.

Fund Bites
  • New 2020 DIRECTINVEST BlueChip Series PDS issued.
  • Security substitution and minimum security holding lock facilities now available on BlueChip Series.
  • Fourth SPDS issued for Challenger Investment Funds.
  • SPDS issued for Colonial First State FirstChoice Investments, Personal Super and Pension.
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