There’s a lot of talk of the WAAAX stocks causing fund underperformance, but they’re simply not big enough compared with choosing the wrong winners and losers among the large cap stocks.
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Statements by Brian Hartzer, CEO of Westpac, confirm that financial advice delivered by advisers to the mass market is not financially viable, and technology is the solution if most Australians are not to miss out.
Recent legal cases involving Westpac and BT put to rest any view that ‘caveat emptor’ (buyer beware) applies to ‘no’ and ‘general’ advice service models, even though those models do not attract a best interests duty.
This exclusive annual scorecard checks bank results in a difficult year, and looks ahead at the hurdles and opportunities for the sector that many Australians rely on for their income.
The history of the Big Four banks is littered with bad strategies by overpaid executives, taxpayer-funded rescues and a lack of competition. As the banks clean up the Royal Commission mess, Macquarie has overall done better.
While property and equity markets remain expensive by historical standards, yields achievable relative to risk remain strong in the hybrid market, notwithstanding recent upticks in price.
Our regular check on the ‘star’ performances from the Australian banks’ May 2018 reporting season in the face of low credit growth, increased regulatory scrutiny and the sales of insurance and wealth management divisions.
Factors relating to technical adjustments, timing of bank reporting and offshore influences have created wider spreads on bonds and hybrids which should mean revert in time.
The Australian banks are on firm ground with strong capital ratios, few bad loan problems and sustainable dividends, but lower demand for credit, tighter margins and the bank levy give no room for complacency.
A look at the ‘star’ performances from the Australian banks’ financial results for 2017 and how they have handled non-bank competition, government levies and business divestments.
Well-executed mergers and acquisitions can add material shareholder value, but there are plenty of examples where they destroy value, and in the worst cases, jeopardise the entire company.
Stock markets overall had a good year in FY 2016/2017 while bonds and defensives like listed property struggled. Looking to the future, what are the three most-asked questions facing investors?
A surprisingly small number of stocks usually drive index performance, and active managers who miss these few companies can struggle to perform and justify their active fees.
Understanding the difference between first- and second-level thinking can make for more informed investment decisions, finding things others miss or bringing insights others don’t possess.
There is popular and political support for a bank royal commission, but what can it really achieve? Two years of bank bashing for doubtful results in an already heavily-regulated and monitored industry.
The wealth management businesses of major banks may be efficient uses of their capital, but it comes with scrutiny of the vertical integration model and culture risks. There’s increasing focus on whether it’s worth having.