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Investing in Smart Beta



Investing in Smart Beta

Interest in “smart beta”, or “strategic beta,” has grown rapidly in popularity over the past decade.  This interest has led fund companies to introduce hundreds of smart beta funds, giving investors a wide range of options for integrating the smart beta concept into their portfolios.  As with any investment, though, investors should have an understanding of what smart beta is and how it works before determining if smart beta can help them achieve their investments goals. 

Smart beta is based on the more comprehensive factor investment strategy, which has its roots in the discovery of various attributes, or factors, of stocks that help explain their returns.  The first factor identified was the well known CAPM Beta.  Developed by Willian Sharpe in the 1960s, CAPM is an equation that calculates the expected return of an equity based on a measure of risk called Beta. 

Re  =  βe  x  ( Rm – Rf  )  +  Rf


Re is the expected return of the stock in question

Β is the Beta of the stock in question

Rm is the return of the market

Rf is the risk free rate of return

In CAPM, the higher the Beta, the greater the return of the security.  And since Beta is a measure of the risk of a security compared to the risk of the market as a whole, CAPM can be distilled to “higher risk, higher return.”  The first factor, then, is risk as measured by Beta.

A number of other factors have since been identified.  In the 1990s, Eugene Fama and Kenneth French developed the Fama-French Three Factor Model.  This model identified value and size as new factors along with Sharpe’s Beta and was the result of research which showed that small companies (size factor) and companies with lower valuations compared to those of their peers (value) tended to outperform over time.  Other asset pricing models using these and newer factors, such as the momentum and quality factors, have been developed since then.

There are now hundreds of funds that target these factors.  Most will target one individual factor, but other may take a multi-factor approach.  They all allow investors to target specific segments of the market which have outperformed historically without investing in expensive, actively managed funds.  This is not to say that investors should just blindly invest in smart beta funds.  Investors should do their research to understand the risks involved and should be mindful of their investment goals before adding these funds to their portfolios.

With the rapid growth of the smart beta segment, it is easy to find differences in factor definitions between funds.  For instance, some funds may have a higher valuation threshold for size than others, so two size targeted funds may have different makeups, even if the stock universe that they pull from is the same.  Sometimes terms can be different between funds, with momentum occasionally called “trend,” and “quality” and “profitability” being interchangeable in some cases, but not in others.  In addition, newer, less well-known factors may have much less research behind, them and some of the more established factors may have actually underperformed in recent periods.  Understanding exactly what you are investing in is as important as ever with smart beta funds.  Take the time to know both the factor and its history and how the fund uses that factor before making an investment.

Smart beta funds are generally considered passively managed funds, but while index-based fund holdings are according to market weight, smart beta funds are a bit more complex.  Weighting is done to target factors, and some funds will use screens to filter out more than just their factors screens would allow.  Each fund develops its own set of rules to determine how to best target a certain factor.  Comparing smart beta funds to a benchmark can be difficult as well, as they tend to pull from all areas of the market when targeting a specific factor.  Performance will likely vary widely from common market benchmarks such as the S&P 500.

Diversification can also be an issue when investing in smart beta funds.  Despite data showing long term outperformance, individual factors can go though years long periods of underperformance.  Targeting just one factor in a portfolio can decrease diversification, increasing risk unnecessarily and adversely affect returns if that factor’s performance falters.  In addition, targeting some factors can leave you overexposed to certain market segments.  The low volatility factor, for instance, can overweight the utility sector.  If you’re already invested in that sector through other strategies, targeting the low volatility factor can increase risk in your portfolio. 

As with asset class strategies, returns from smart beta tends to be driven by returns from a few well performing companies.  Its important to ensure that your smart beta investments are well diversified within an asset class as well as across asset classes to avoid missing out on returns from that handful of companies.

Don’t forget to pay attention to the cost of your investment.  Because smart beta focuses on easily definable metrics, smart beta funds are generally fairly inexpensive, but they are not as cheap as index funds.  Furthermore, turnover in a smart beta fund may be higher, especially with a shorter-term factor such as momentum.  Higher expenses can quickly eat up any outsized returns a fund generates, so it is critical to be aware of how much these funds cost to invest in.

Finally, don’t lose sight of your investment goals.  When a hot new strategy comes along, its easy to be tempted to go all in chasing returns and expose your portfolio to unnecessary risk and expense.  Take the time to evaluate the smart beta strategy and understand how integrating it into your portfolio will align with your financial plan and help you achieve your investment objectives.

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How to Find Out Top-Listed Business Registering Consultant Online?




Business Registering

Everything is available on the internet about those things which we need to search out. No doubt, the world of the internet has every type of reliable and effective solution which we need to apply in your life. This era is quite better with lots of new opportunities that could be effective and useful for everyone. The same solution you could apply for the business establishment where you will get immense results as per your desire and need. The business sector these days is grooming up high in the sky because it has adopted the whole solutions which are quite effective and useful for it. Do you have any idea which is the most important and effective solution for business grooming these days? Here we will let you know in detail about it and you will find everything perfect and useful.

Right now, hiring the help and support of a professional business registering consultant. This option is quite effective and useful for small and large size of businesses around the world. If you are interested in establishing a business in Africa, it will also provide you immense solutions for gaining the right solution as per your demand and need. For this purpose, you need to get in touch with a professional Business Consultant in Africa. You could search out the right option from the internet by following these steps.

Steps to Find Out Professional Business Registering Consultant Online

Follow these steps to find out the right business registering consultant for your business help and support. Moreover, you need to share this information in your network as well and everyone will get the right solution which they are searching for.

1.    Type your Query in Browser

As we have discussed with you earlier that it will be quite effective and useful for everyone to search out any type of query from the internet browser. Here, you will easily get the right solution which you are searching for. You will smartly get a brief list of solution providers in front of you and you have to decide or pick the relevant options in all.

2.    Select Multiple Options

In the second step, you have to try to select multiple options in the list and send them a free quote option to get the right idea of which types of efficient services they are providing their customers. You will get all replies from their side and you can better check out their mentioned services and charges in detail.

3.    Check their Reviews on their Website

Without confirming their reviews available on their website, do not send the free quote to the solution provider. It is an obvious fact that clients prefer to share their experience with the service provider to help out others. These reviews are much effective and useful for everyone to know in detail. Feel free to check thoroughly and after checking the right option, send a message for the free quote.

4.    Manage Your Time for Meeting

After confirming the professional background of the Company Registration in Kenya, you need to manage your time for the meeting. In the meeting you have to describe everything to the solution provider about your business and what type of effective help and support you are expecting from them. They will guide you well in this regard. They will also give you useful suggestions for your business and they will show you their intelligence factors which could be effective and beneficial for your business in the future.

5.    Get Decided Your Business Plans

Do your homework well for the business meeting with the professional business registering consultant. In this meeting, you will be given a chance to share every type of aspect with the solution provider and they will also get you to know in detail everything. Managing and starting a new business anywhere in the world also need some sort of effective planning and strategy. If you are experienced, then you need to apply modernized solutions for your business establishment. Everything will get set perfectly in your business and you can smartly run your business without any hassle.

All these points are much effective and useful for everyone to know in detail. You will smartly get know the importance of utilizing the smart solution for the business establishment process. Around the world these days, business professionals prefer to utilize their services and they also prefer to handle these professionals all those legal tasks of the business which are also much important. Professional business success will effectively manage and control all assigned tasks because they have created a strong relationship with other departments and they will also assure you the work will be done without any delay in time. Make sure to follow all described rules and tips perfectly to get in touch with the trusted option.

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5 Aspects of a Great 401(k) for Employees



When deciding to accept a job offer or stay with an employer, candidates and employees take a company’s retirement benefits into account. That means 401(k) plans are more than a way for employees to save for retirement. They can be an important recruitment and retention tool for employers, including small businesses. 

A small business 401(k) can help your company stand out and compete for talent with larger organizations. In fact, without a 401(k) benefit, your business may be losing out on good workers. This can end up costing you more than retirement plan benefits.

If you’re thinking about adding a 401(k) for employees, you may be wondering what features will appeal to them. Here’s a look at some of the qualities that make 401(k)s attractive to your staff and increase participation rates.

1. Matching Contributions

Although employers don’t have to match workers’ contributions, many do as an incentive. For employees, matching contributions are essentially free money. These contributions can provide a boost to their salaries and entice them to stay.

Companies typically match anywhere between 1% and 7% of employees’ contributions. Workers’ 401(k) contributions usually make up a percentage of their salaries or hourly wages. For instance, a business may offer to match 100% of employees’ contributions up to 3% of their income. The employer may also match 50% of contributions that represent up to an additional 2% of workers’ salaries.  

Rather than a tiered match, as in the example above, some employers may elect to make a flat-rate contribution. Let’s say the average staff member earns $50,000 a year. You decide to match 100% of 401(k) contributions up to 5% of their annual salary. If the employee contributes 5% (or $2,500), your contributions will also equal $2,500.

As you can imagine, the costs to a company of 401(k) contributions are substantially less than those associated with turnover. Gallup estimates that turnover costs a business between one-half to two times a worker’s yearly salary. For an employee making $50,000 a year, that’s $25,000 to $100,000 you could potentially save through retention.

2. Financial Education Tools

Access to financial wellness education and online tools is becoming increasingly important for workers. When employees experience financial stress, they’re more likely to call out sick or arrive late to work late. Distress over money issues can increase absences and tardiness by as much as 34%.  

By including money management courses and online tools as part of your 401(k), your staff can learn best financial practices. Topics may include budgeting, how much to save for retirement, and guidelines for emergency savings. 

Some 401(k) plans have web-based interactive tools that let employees calculate how much they need to save. These tools can also provide concrete information on how different investment options can impact their 401(k) earnings.  

3. Automatic Enrollment

The 401(k) enrollment process for workers can be confusing and lead to frustration. It’s also easy for eligible employees to forget to enroll or put it off. Automatic enrollment simplifies the process. It also removes the pain point of having to remember to go online or fill out paperwork to enroll.

Automated processes can be set to deduct minimum contribution percentages and increase these with age or tenure if employees choose. For example, an employee who reaches the age of 50 may want to start making catch-up contributions. Others might begin with contributions representing 1% of their salaries then increase to 5% after they become eligible for an employer’s match.    

With automatic enrollment options, the IRS requires that employers give their staff a way to opt out. Workers should be able to opt out of contributing to or participating in the plan. They will also need a way to reduce their contribution percentage if automatic enrollment sets it at a predetermined rate.

4. Immediate or Shorter Vesting Terms

Some 401(k) plans require that employees complete so many years of service before they become vested. With vesting, your staff can keep all of their contributions if they leave before the tenure requirement is up. However, they will lose any matching contributions.

While vesting requirements can make businesses feel more secure, workers may find them restrictive. They might look at long tenure stipulations as a means of control or a reason not to participate. Immediate vesting or 401(k) plans that contain shorter tenure requirements can prevent these negative perceptions. Even though immediate vesting may be riskier, you could see a bump in job satisfaction and engagement.          

Another option to shorter tenure requirements is to use a graded scale. As your staff logs more years on the job, the percentage of vested contributions gradually increases. For example, the percentage could increase by 2% with each year of service.  

5. A Variety of Investment Funds

Your staff will have different retirement goals, needs, and risk tolerances. Younger employees may want to invest in a range of stocks and money market funds. This includes funds with higher risk and growth percentages. More mature staff members might want to gravitate toward stable and low-risk options like bonds.  

Providing a wide range of options, such as international, large-cap, mid-market, and small-cap funds can help satisfy all employees’ expectations. Some 401(k) plans also provide age-based funds that make investing easier.

These funds are curated and automatically adjust their portfolio mix according to the age of the investor. When an employee is further away from retirement, the fund invests in options with more growth. As the person gets closer to retirement, stable funds make up an increased proportion of the mix.  

Offering lifestyle funds, which work in a similar way to age-based funds, can also diversify your 401(k) plan. These funds adjust their portfolio mixes based on how much risk the employee is willing to take. Index funds with low administrative costs and fees can increase the attractiveness of your company’s plan.

As the war for talent escalates, businesses that provide a well-rounded 401(k) plan give themselves an advantage. Attractive plans go beyond a decent company match. They include a range of options that put control in the employee’s hands. Without these as part of your 401(k), you may be leaving skilled workers with no option but to look elsewhere.

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All You Need to Know About a Police Union





A police union is guided by the mission and vision they set out for themselves. The mission usually centres around creating safer communities by combining their powers with other community forces. The Queensland Police Union for example intends to reach their goals by working with non-governmental as well as governmental organizations.

And so the different strategies to reach their goals as a police union continues across different districts in Australia. The one aspect that remains the same everywhere is the dedication and commitment from all the members of the police union to reach their goals.

This is What the Police Union Value 

It’s important to understand what the values and guiding principles are for any police union so that they reach their goals. This will fundamentally guide them in their decision making and planning. These are some general values and principles shared by most police unions:

  • Values: They believe their members should be courageous and always do the right thing when dealing with any situation. Being consistent and making honest decisions is key. Their members should provide solid evidence which reflects fairness and objectivity with every case they present. Taking pride when serving the community should be taken seriously and modelled daily by all the union members. Fostering a trusting relationship with the community can only be sustained through having integrity. Maintaining a level of professionalism demands respect from the community and that’s encouraged by the union.
  • Principles: Police unions aim to unleash the full potential of their members. They embrace their members with empathy understanding the difficult terrain they have to navigate. They encourage new ideas and work together to reach their goals. Setting clear and realistic goals is essential for the union’s success. They also invest a lot of resources into developing their member’s skills so they stay on top of their game. Being transparent in all areas of their work is a top priority.

Implementing Different Strategies 

Although each police union has a specific strategy for their area, the following strategies are usually adopted by most police unions. These strategies are designed to strengthen the union and help them reach their goals.

Stopping Crime

A police union always devise a variety of tactics to stop crime. These tactics have been invented and studied to disturb the manifestation of crime. Some of the strategies include addressing the threat of terrorism as well as combating organized crime. Through strong collaborative partnerships with communities and other law enforcement agencies, many police unions succeed in stopping crime.

Of course, this doesn’t mean there’ll never be new ways criminals come up to break the law, it simply means police unions are dedicated to investigate and prevent crime at all times.

Safer Communities

Creating safer communities is a top priority for most police unions. One way of creating a sense of security could be by responding promptly to emergency calls. If a unit responds quickly to an emergency call it cements trust and confidence in the police force. Communities need to trust the police because they need each other to combat crime. A zero-tolerance for criminal activities should be adopted in all communities.

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4 Helpful Tips on Making Your Next Move Easier




“Moving can be fun”, said no one, ever! Whether it’s a small couch or your queen-sized bed, transporting your belongings can be hard work. But, working smarter, not harder is where the secret lies.

Moving into a beautiful new home is exciting for anyone, right? However, moving all the items you’ve hoarded over the years isn’t as fun. Luckily there are ways to transport your goods easier and safer. One such way could be using a box trailer hire which comes in handy when you’re transporting smaller loads. 

Let’s look at this and some other ways you can make your move safer with less fuss. You may even surprise yourself and enjoy the experience. 

Trailer Safety

Using a trailer for your move is a good option as it’s affordable and easy to use. Operating a trailer for the first time can be nerve-racking though. Being in transit with a full load requires that you know exactly where you’re going and what you’re doing. This is what you need to check before hooking up your trailer to your vehicle:

  • Trailer hitch receiver: If you’re lucky and you own an SUV or a pick-up truck then the hitch is already attached to the vehicle. If not, go and buy a hitch to attach to your car. Always make sure you firmly secure the trailer to your car for a stable towing experience.
  • Wiring harness: You’ll notice your trailer has lights at the back. This helps you safely indicate when you’re turning or stopping when driving. These electrical wires connect the trailer to your car which should be covered by a wire harness for safety. Protecting the wires safeguards against the weather and other elements that can damage the wires.

Stop Procrastinating!

Putting things off won’t get you anywhere and will only increase stress. So, start immediately. Identify which room in the house will take up the most time to pack up and start there. Getting the most difficult task out of the way will give you motivation to tackle the smaller tasks. Here are more ways to get going:

  • To keep yourself accountable, set a deadline and stick to it
  • When unpacking the boxes, immediately get rid of them to limit frustrating clutter
  • Give yourself no room for excuses. For example, ask for help if you struggle moving large items
  • Bubble wrap your fragile pieces and mark them as fragile on the boxes
  • If you can, plan your move on a weekday when the roads are quieter
  • Only use sturdy moving boxes. Re-used boxes can be worn out and cause breakage
  • Don’t mix items from different rooms. Pack room by room, box by box so unpacking will be easier

What Should Go and What Should Stay?

Letting go of sentimental items isn’t easy but there’s no better time to declutter than when you’re moving. This simple checklist will help you decide what to chuck and what to keep:

  • Leftover paint should definitely go so throw it away or give it away
  • Books you’re not planning to read should be donated 
  • Any expired medicine should be thrown away
  • Keep some plastic containers that are still in good shape and that still have lids, but get rid of the rest 
  • Donate or bin anything you haven’t used in a while. Better yet, get the kids to do this activity with you so it will make your load lighter 

Ready to Move, What Next? 

The thought of hiring a moving company is an option but so is the heavy bill that comes with it, right? If you decide to take on the job yourself, here are some tips to make the trip easier:  

  • Set out a timetable so you know exactly how long it will take for trips between the two locations 
  • Marking essential boxes such as food and kitchen homeware as “open me first” on the box, helps you identify them easily and saves you a lot of time searching through several boxes
  • Label boxes by items and rooms, which makes it easier to allocate and unpack 
  • Listening to a music playlist while unpacking eases some of the stress and can actually make the exercise enjoyable
  • Keep the clothes on the hangers when you pack them. That way it’s easy to unpack and hang in the closet when you arrive at your new place 
  • Don’t overload boxes. It’s unsafe and can cause those carrying them to drop them 
  • Avoid moving at night. you’ll be tired and moving a load on the road after a long day isn’t safe

Final Thoughts

So perhaps moving won’t ever be a “fun” experience but it could be a more palatable event. It only takes some planning and commitment to get it done as quickly and easily as possible. 

The best feeling after a move is always the satisfaction when it’s done. Starting sooner rather than later is always a bonus and gives you a sense of control. So, start packing right away and enjoy the excitement of moving into a new home. 

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How Much Are The Prices And Storage Capacity Of Adelaide Skip Bin Hire Company?



Adelaide Skip Bin Hire is a leading skip bin hire company in Adelaide. With over 10 years of experience and a high quality service, they are the number one choice for many people looking to get their hands on Best Price Skip Bins. They offer a range of different sized bins to suit your needs, with prices starting at $150 for small-sized bins up to $900 for large-sized ones that can hold up to 50 cubic meters each.

What Is Skip Bins?

If you have rubbish that’s too big to fit into your garbage bin, the best option is a skip bin. Skip bins are large containers used for collecting and storing waste materials so they can be disposed of down at the dump. They’re available in different sizes depending on what types of wastes you want to store and how much space you have around where it will be stored.

Skip Bins come in all shapes and sizes from very small ones up to quite large ones with capacities ranging from ten litres or two cubic metres right up to as high as fifty cubic metres or more than one hundred thousand litres. In general most people use them for gathering household type debris like garden clippings, old furniture pieces, cardboard boxes etc., but really, anything that will fit into the bin can go in there.

Choosing a skip size is more about how much space you have than any other considerations, but it’s worth noting that if you’re going to be storing large and heavy items like bricks or steel pipes then you’ll need a bigger one with higher capacity. 

Prices And Capacity Of Different Skip Bins Are:

  • $150 for small skip bins (bins capable of holding up to 30 cubic meters) 
  • $300 for medium sized bins (bins capable of holding up to 50 cubic meters) 
  • $800 for large skip bins (skip bins able to hold up to 100 cubic metres).

Discounts Providing By Company:

• If you are looking at renting more than one bin, they will be happy to provide their customers with an extra discount. This is typically around 15% off the total cost when two or more units are rented. For example, if it costs between 500 – 600 AUD per month in general, then it would fall down closer towards 400 AUD per month once this discount is taken into account.

• If customers take a look at the long-term rental deals, they will notice that these can also be discounted by around 15%. These are monthly and yearly contracts with an agreed upon price per month or year in advance of any work commencing on the job site. For example, if it costs 500 AUD per week to rent one bin for this particular company then instead you would need to pay 450 AUD each week for four weeks when taking up one of these discounts. 

• Lastly, there is our 20% off introductory rate which lasts 12 months from first hire date. This makes renting just about anything as low as 320 AUD per month regardless of how many units are rented or length of contract signed.

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