Jeremy Duffield

Jeremy Duffield is a senior player in the Australian and international financial services sectors, having served as a senior executive with leading global funds manager The Vanguard Group USA from 1980 to 2010. He founded Vanguard’s operations in Australia and Asia, and led them from 1996 to 2010. Jeremy is Chairman of the Australian Centre for Financial Studies and is a non-executive director of MLC, National Wealth Management and Plum Financial Services. He is a member of the Federal Government’s Australian Centre Financial Task Force and was previously a member of the Financial Sector Advisory Council and the Financial Literacy Foundation. He was also Deputy Chair of the Financial Services Council.
When markets are diving: How to navigate volatility

When markets are diving: How to navigate volatility

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The recent declines in the Australian and global share markets, driven by the US tariff announcements, may be unsettling. Today’s article by Jeremy Duffield aims  to provide context and encourage confidence in your retirement future.  

Downturns are common

It’s important to remember that market downturns are a normal part of investing. History shows us that these fluctuations, while sometimes sharp, are not unusual. In fact, over the past 59 years, the US market, measured by S&P 500 Index, has experienced a decline of more than 10% on average once every 2.2 years.

Investing for a long haul retirement

Investing for a long haul retirement

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I remember presenting to an investors’ association and talking about long-term investing.  It was a fun group, mostly retirees.  One guy quipped: “What’s long term? We’re so old we don’t even buy green bananas any more.” 

Well, that certainly put a perspective on it. We all have different views of what’s long term.  

Why does your timeframe matter?

It matters in investing a lot, because it has a huge impact on how much investment risk, or volatility, you can take.  The longer your time horizon the better you’re able to accept some short term swings in market values.  

The share market, for instance, is famous for its volatility. Over time, shares have paid off very well for investors, much better than more conservative investments like cash and bonds. (Over 30 years through June 30 last year, Australian shares returned 9.9% per annum, Australian bonds 5.8% and Australian cash 4.2%.)  Differences in returns might look small but when you compound your return over many years, it makes a huge difference.  For example, $100,000 invested at 5% over 20 years grows to $265,000, to $321,000 at 6% and $673,000 at a growth rate of 10%.

In 2024 taking risks certainly paid off for investors as the Australian share market has earned over 10%  and international markets much higher returns of about 27% aided by the effects of a weak Aussie dollar.

Finding your Diamonds*

Finding your Diamonds*

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It’s simpler than you think Can you find the acres of diamonds in your own backyard?  About 150 years ago, a famous American author and orator began touring the country with a speech called Acres of Diamonds, which enthralled huge audiences. Russell Conwell gave...