While there is a role for both active and passive investments in portfolios, the impact of relatively small reductions in management fees can compound to large amounts over a lifetime of saving.
‘Grey swans’ are surprises that are improbable but more likely to occur than ‘black swans’, and investors should consider the possible impact on their portfolios. Some of these swans will paddle by this year.
New research shows a rapid increase in the proportion of retirees expecting to outlive their savings, and those not yet retired are worried about markets and not saving enough.
It was a good reporting season with market EPS expectations increasing 1.6%, the best outcome since 2010, but as ever, some segments of the market are faring much better than others.
The deductibility of personal contributions due from 1 July is a bigger opportunity than most people realise, given many employees were not allowed to salary sacrifice, and some employers abused it.
In the sixth annual review of the ETF industry, there is an extraordinary reduction in the average age when investors first use ETFs. It’s a sign of the sustainability of rapid growth.
Successful affordable housing initiatives in the UK and indications from Australian institutional investors that they would invest in a similar scheme here are encouraging developments.
The 50% CGT discount has little justification during low inflation and it encourages capital gains over income. The preferable system is the indexation in effect prior to 1999, and it will help housing affordability.
Putting money aside to pay for a child’s education requires a serious savings effort, and lack of access to superannuation rules it out as a tax-effective and flexible option. There is an alternative.
With the majority of Listed Investment Companies reporting lower earnings in the six months to 31 Dec 2016, it’s the LICs with adequate profit reserves that can offer dividend sustainability for investors.
Sticking to a value-driven investment strategy is difficult in a market fuelled by hope and buoyant expectations. At what point should investors forego the equity market rally to prepare for a possible correction?
Bringing funds management in-house is a popular move for large Australian super funds, but the potential problems have been highlighted by Harvard, an early pioneer of the practice, returning to outsourcing.
Allocation Switch is an asset allocation strategy that follows the profits instead of following the market, which arguably helps limit downside in the event of a market crash.