A recent global survey revealed a lack of trust in investment firms. There are many areas for improvement such as disclosure, transparency, and conflicts of interest, and different LIC structures are examples.
Archive | Investment Strategies
9 strategies to make the most of EOFY 2018
There are strategies for this EOFY which could reduce your tax bill while supporting other objectives such as charitable giving, insurances, personal or spouse super contributions, or asset purchases for business.
Can Australian credit continue to perform?
Australian credit markets have had a good run, and any investor tempted to exit the sector should consider whether a move now is too early in the cycle. A period of range-bound stability is the more likely outcome.
SMSFs allocating to managed funds and global
SMSFs have long lagged institutional superannuation funds in allocating to global equities, but SMSFs trustees increasingly realise the best opportunities lie overseas, and they use managed funds as the vehicle.
Why the tech giants still impress
Most S&P500 companies are doing well with recent reported earnings above expectations. In the tech sector, the Big Five (Apple, Amazon, Microsoft, Facebook, Alphabet) have also diversified their income sources.
How do ‘direct investment options’ deal with franking credits?
Many readers have asked why institutional super funds will not be affected by the proposed Labor policy denying franking credit refunds. The tax calculation is explained in the context of direct investment options.
The outlook for Australian banks
Australian banks appear cheap and their shares trade below broker targets. But three analysts offer deeper explanations that suggest stronger credit standards will affect house prices and credit growth.
The merits of investing in LICs at a discount
It’s important to consider why a LIC is trading at a discount, as what might appear good value worth buying may be built into the price for many years, and the discount may even worsen.
Why active management needs a full cycle
The long bull market allowed passive investing to prosper, but over a whole cycle, companies with better fundamentals will outperform weak ones. The market is finally showing some dispersion.
The case for Australia to restore its gold reserves
It’s been 21 years since the RBA sold the majority of Australia’s national gold reserves. The decision cost the nation AUD5 billion. Is it time to rebuild gold reserves with the opportunity cost now much lower?
How to select assets in a world of choices
This wide-ranging interview with Pilar Gomez-Bravo, Director of Fixed Income at MFS Investment Management, covers the role of active management, the low rate environment, portfolio creation and asset class correlations.
Why stock selection beats macro forecasting
Macro trends are almost impossible to forecast, and picking undervalued shares with an eye to the long term is a better way. But often, stock selection requires resilience in the face of criticism.
The evolution of private debt markets
Non-banks are claiming market share from banks in many forms of private debt, and it’s changing the nature of funding for many small to medium businesses.
5 red flags on active manager trading costs
Active managers trade more often and in larger amounts than passive managers do. Costs incurred from trading, in aggregate, can be substantial and ought to be considered in the decision to use active strategies.
