complexity

Investment Strategy

Towers Watson: complexity coming straight at you

To be a long-term investor requires thematic investing because markets and economies are complex adaptive systems, according to Tim Hodgson, global head of the thinking-ahead group at Towers Watson. Hodgson told delegates at the Towers Watson Ideas Exchange in Sydney that economies and markets are complex and adaptive, their path is not random and the […]
CMSF

Fear and complexity key to disengagement

Disengagement in superannuation funds is caused by members’ fear of loss, confusion over decision making, and embarrassment at small savings levels, a behavioural economist told delegates. The findings came from interviews with 1500 super fund members carried out by market research firm, the Leading Edge. It found 67 per cent had no interaction with their […]
Investment Strategy

Kill complexity, just follow the money: Schroders

The head of Australian equities at Schroders Investment Management, Martin Conlon, has argued that good investment analysis looks first at the ungeared cashflows of companies. The industry’s favoured valuation yardstick, the price/ earnings ratio, was unreliable because it introduced leveraged profits into the process. The importance of finding the true source of cashflows was demonstrated […]
Investment Strategy

Kill complexity, just follow the money: Schroders

The head of Australian equities at Schroders Investment Management, Martin Conlon, has argued that good investment analysis looks first at the ungeared cashflows of companies. The industry’s favoured valuation yardstick, the price/ earnings ratio, was unreliable because it introduced leveraged profits into the process. The importance of finding the true source of cashflows was demonstrated […]
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