Australians love owning dividend-paying shares, especially with the added benefits of franking credits, and the rewards from owning shares should not be judged in terms of price movements in isolation.
The reality of investing in a bond is that regardless of whether we have experienced a massive bull market, the most a bond is worth at maturity is the face value.
It’s common practice for LICs to issue ‘free’ options with their initial public offerings to offset the effect of listing costs on NTA. So, why are LIC options rarely exercised?
Hostile takeover battles can produce heated disputes between company directors, managers and shareholders. What’s in the company’s long term interests and who decides? Does shareholder activism aid or hinder?
Most simple questions in investing disguise a myriad of complex issues. Here are 11 questions that should be asked before investment in a real estate portfolio can be pursued.
Direct investment in a commercial property often comes with unique risks not associated with a diversified portfolio, such as the exposure to a single tenant and special lease conditions.
UCITS may be an unknown structure to most Australian investors, but it has been an amazing success around the world, and a special ASIC exemption may increase its use in Australia with easier access to the same system.
Articles from previous editions
If you’re wondering how sustainable the current high prices of Australian equities and Sydney’s housing are, you need to consider the likely demand of the marginal buyer.
Australian banks are vulnerable to a collapse in the local housing market due to an overexposure to high-rise developments, interest-only loans and high loan-to-value ratios. The main uncertainty is the timing.
A decline in activity related to household construction, combined with the arrival of foreign retail brands, does not bode well for Australian retailers. And an online behemoth may be an even bigger threat.
In addition to the $1.6 million transfer balance cap, SMSF members should also understand the concept of ‘total superannuation balance’ to stay within the rules and make the most of contribution opportunities.
Deferring concessional contributions to a year when an individual’s taxable income is higher by making ‘catch-up’ contributions can create a sizable tax arbitrage between tax paid within the fund and tax paid personally.
There’s a common misconception that as a ‘bond proxy’, infrastructure asset prices will fall as bond prices do when rates rise. But these hard assets have sufficient inflation protection to drive a more robust outcome.
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