How well must the market perform for a geared portfolio to deliver better returns than a normal, ungeared portfolio? Or put another way, if the market index rises or falls 10%, how much will a geared strategy change in value?
Author Archive | Graham Hand
* The AFR monitors 11 investment bank forecasts for the S&P/ASX200 (currently 5069) at the end of the year. The range is 4000 to 5200.
* Warren Buffett’s annual report to Berkshire Hathaway shareholders was released last week. Here’s a link, always worth reading.
* Changes in ASX100 show how long term trends benefit or harm companies. Publishers Fairfax and PMP out, online REA and Trade Me in.
* The full text of dismissed Groupon CEO’s final email to staff, with main message: “Have the courage to start with the customer.”
* Retail investors can access free, independent ratings on any public super fund on the Chant West website, plus the Top 10 ratings for 2013.
Special Insight: How New Funds Are Started
* SMSF trustees could face double stamp duty if they buy properties in their own name at auction and then want the property held in their SMSF.
* Institutions (including superannuation funds and offshore investors) own 90.1% of the issued capital of Australia’s top 300 companies.
* How not to run a pension scheme. In California, just 10 individual pensioners will cash $50 million in pension checks from state and local governments over the next 25 years.
* Better and cheaper availability of wholesale funding for major banks will reduce retail term deposits rates, as CBA takes its foot off the gas.
* APRA has just released its December 2012 Quarterly Superannuation Performance, showing a 14.6% rise in assets over 2012 to $1.51 trillion.
If ‘SMSF’ were a corporate brand, its marketing department would be the most successful in superannuation history. The major retail funds always had a strong response to SMSFs in their kit bag, but they didn’t explain it to enough customers.
Google searches for ‘term deposits’ peaked in late 2009, and since 2011 have been in steady decline. At the beginning of 2013, the searches for term deposits are at their lowest for five years.