As ETFs and LICs compete for market share, there’s enough interest in listed investments for both to prosper, and product innovation in ETFs shows no sign of slowing. Where will the growth come from in 2019?
Archive | Caveat Emptor?
Retail FX: the last bastion of no competition?
Australian retail customers typically still pay a hefty fee on FX transactions at the airport or through the banks. Fintech solutions are more competitive, and global banks are also offering multi-currency accounts.
Deposit guarantee bill passes but not for super funds
The government guarantee on deposits has finally been legislated and based on information released by APRA you’d be forgiven for assuming that superannuation bank deposits would be covered. Not necessarily.
Investing in car spaces? Park that idea
When the NSW Government announced some apartments will no longer be required to have car spaces, real estate agents predicted rising prices for existing spots. They overlooked one nasty little cost for investors.
Watch your neighbour in managed funds
The actions of other investors in a managed fund can have a material impact on individuals in the fund. How much do you know about the realised and unrealised capital gains, franking credits or distributions of your fund?
The perils of hybrids
With the current low interest rates, many investors are building exposures to hybrids unaware of the risks. Check the warnings of legendary investor, Ben Graham, and consider if hybrids can withstand a downturn.
Caveat Emptor: Lifetime annuities versus indexed bonds
A reader sent in an excellent question on the merits of lifetime annuities versus long term indexed bonds for post-retirement income. Jeremy Cooper and Elizabeth Moran make the case for each.
Caveat Emptor: Super caps for workers over 65
Graeme Colley answers a reader’s question on making non-concessional contributions to super after the age of 65, including how the contributions caps work in different situations and how to make the most of them.
The decline of margin lending
Investments using margin loans must at least cover the cost of interest and other fees, currently around 8%. Fewer investors are using these products, but how long until we fall in love all over again?
More questions on QE
With the ‘tapering’ finally announced last night, it’s as important as ever to understand what’s happening. So when Rick Cosier asked some of the questions many would like answered, Warren Bird obliged.
Are income funds just arbitrage funds?
Australian equity income funds have become extremely popular as investors look for yield and income, but are they arbitrage funds by another name? Rudi Minbatiwala of the Colonial First State Equity Income Fund responds.
How risky are bank hybrids and are they misrepresented?
The search for yield has driven retail investors into billions of dollars of hybrids that could not be sold to wholesale investors at these levels. Is the full picture being told to the retail market?
Caveat Emptor? Your criticisms of financial products answered by the manufacturers
This week, we answer four of your Caveat Emptor questions on our website. Send us your criticism or concerns about a financial product, and we’ll ask an expert to respond. Write to us at [email protected]
Watch the performance of performance fees
Paying a high performance fee must be a good problem to have, as it must mean the fund manager has delivered outstanding performance, right? It’s not always the case, and it pays to know how the fee is calculated.
The float of Nine Entertainment
Investment manager Kieran Kelly gives his assessment of the Nine Entertainment IPO, and he’s not impressed at the asking price.
Inflation linked bonds
Do long dated inflation linked bonds help the investor in a rising interest rate environment? Elizabth Moran of FIIG Securities responds to our reader.
