More super funds set to cut investment return targets in response to rising secular headwinds

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About one-quarter of MySuper funds have cut their investment return goals over the past three years and more are likely to follow in the face of rising uncertainty, according to Frontier Advisors. Ageing demographics, falling productivity across developed nations, mounting geo-political risks, threats to global trade, and the impact of climate change are just some […]

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Why equities for income?

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Income is traditionally associated with term deposits and fixed income among more defensive assets, and with real estate and the traditional concept of high dividend shares among growth assets. In the last 20-years, there has been a fundamental change in the relationship between dividend yields and the cash rate, a proxy for short-term deposit rates (as shown below). The secular […]

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Related party loan to SMSF – when is a loan not a loan?

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John is the sole member of his SMSF and is the sole director of the fund’s corporate trustee. After seeking financial and tax advice on the benefits of owning a property in his SMSF, John decides to sell his investment property valued at $1m to his SMSF. As his SMSF’s available balance is $200k short […]

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Franking credit opportunity before 30 June for share fund investors

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The end of this Financial Year presents savvy Australian share fund investors with the opportunity to top up their franking credits pool and reduce their tax bill. Franking credits collected by many Australian share funds are frequently not recognised in the Fund’s unit price, in which case Credits are often only distributed at Financial Year […]

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CPD: The fourth pillar of retirement funding

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Australia’s retirement income policy has been traditionally framed as having three pillars: superannuation, non-superannuation savings and the Age Pension. However, for many Australian baby boomers these three pillars provide inadequate resources to fund 25+ years of retirement. Household Capital explains why it’s now time to include the fourth, and largest, pillar of retirement funding – […]

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TAL seeks to highlight the ‘human’ side of life insurance support in new brand campaign

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TAL, a leading Australian life insurance specialist, has launched a new brand campaign this week aimed at changing the way Australians view the role of life insurance. The campaign, which follows on from TAL’s ‘The Value of You’ work earlier in the year, is aimed at continuing to connect consumers with the value of the […]

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Brace yourselves: A claim against your Will is coming

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It seems that along with dragons and Westeros, the idea that a person has substantial discretion in how to gift their estate on their death is a myth. Those left underwhelmed by the conclusion of the final season of Game of Thrones need look no further than the recent ruling on Steinmetz v Shannon [2019] to satiate […]

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AFI bond managers strongly positioned to navigate unchartered territory

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In an environment where macroeconomic and geopolitical uncertainties have weighed heavily on investor sentiment, Australian Fixed Interest (AFI) bond managers have continued to demonstrate their resilience and produce strong risk-adjusted returns. For the 12 months to 30 April 2019, the median manager in Zenith’s AFI bonds sub-sector produced a net return of 7.2%, broadly keeping […]

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Changes to Pensioners Loan Scheme set to boost retiree bank balances

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Federal government changes to the Pensioners Loan Scheme allowing retirees to boost their income through a reverse mortgage on the family home are about to come into effect in the new financial year. The amendments to the existing Pensioners Loan Scheme announced in the 2018 federal budget have two key components making the scheme more […]

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The nine most important things I have learned about investing over the past 35 years

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My nine most important lessons from investing over the past 35 years are that: there is always a cycle; the crowd gets it wrong at extremes; what you pay for an investment matters a lot; getting markets right is not as easy as you think; investment markets don’t learn; compound interest applied to investments is […]

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