Structuring an investment team around geography or sectors leads to manager bias in poor sectors. Better to focus on a few areas of fascination where product and business expertise can develop.
Check the cash flow characteristics and sustainability in any company before investing, as various ratios can be an early sign that the business is churning through rather than generating cash.
The finding of the Report is that Labor’s franking credit policy is inequitable and flawed, but many say the inquiry was politically-motivated, as the Labor members of the committee deliver a dissenting report.
Most individual investors have difficulty accessing private equity directly, but unlisted and listed funds are opening this diversifying asset class to a wider range of investors.
The days of company boards making decisions in isolation from their shareholders have long gone, and investor expectations are rising across many cultural and social issues.
A reader observed that the Australian Financial Review reported that ‘member direct’ offers will not receive franking credit refunds. Some industry funds have confirmed their options operate in one pool.
Although some domestic cyclical companies currently offer value, the attraction of offshore growth is a key factor for investors, including strong Australian companies with global aspirations.
The design of superannuation is part of a social contract, and people who do not understand the long-term context are often offended that super funds should be tax-free in retirement. Don’t blame Peter Costello.
A reader provides a copy of a letter on franking credits received from Chris Bowen, and we want to give the Shadow Treasurer a chance to put his side of the story.
While hot stocks generate media coverage and attention from investors, for the overall health of the market, they are irrelevant. A few big companies drive the Australian market.
A reader has asked for the simplest possible explanation of dividend imputation and franking, as the heated debate features many people who do not understand the basics.
Investors whose income may be hit by Labor’s franking credits proposal can reallocate away from fully franked dividends to other investments to maintain their income, but it will involve different risks.
All vehicles come with pros and cons versus alternatives, and Active ETFs have a wide range of appealing characteristics in which Australia has led the world. Many more Active ETFs will be launched.
Notwithstanding the popularity of ETFs, Australians are increasingly trading directly on foreign exchanges as online brokers make execution easier. But traditional local names remain popular.