The ALP proposal to limit refunding of franking credits will clearly impact pension phase self-managed superannuation funds (SMSFs). We believe it has the potential to impact many other superannuation funds. In this paper we build a model of the key variables which determine whether a superannuation fund is likely to... Show More

When I was first asked to comment about the ALP’s proposed scrapping of franking credit refunds my response was I was “flabbergasted”. “Flabbergasted” that the party whose Treasurer Paul Keating created franking credits would cut those benefits accruing to retired workers, “flabbergasted” that the Leader of ALP Opposition who earns... Show More

Jennifer Westacott, the CEO of the Business Council of Australia recently pointed out that if the US moves and other nation follow through with their pledges, Australia could become the 2nd highest taxing nation in the OECD. Show More

On 22 September 2017, Rio announced a A$2.5B share buy-back which includes A$700M as an off-market buyback and the balance being allocated to Rio Tinto’s existing on-market buyback. Show More

The underperformance of Australian equities in the last year has highlighted the importance of diversifying globally for all Australian investors, not only to seize opportunities but to avoid being overexposed to local risks. However, we believe most Australian SMSF investors have very low allocations to international equities, particularly relative to... Show More

Retirees are often exposed to substantial income domestically, but in an increasingly global world, where else can they look? This question becomes increasingly pertinent when one looks at the backdrop of an incredibly low yield environment, with bonds at historical lows, even negative levels! In this note, we will discuss... Show More

Plato Income Maximiser Limited, the first Australian listed investment company aiming to provide monthly fully franked dividends, began trading on the Australian Securities Exchange today. The listing on the ASX follows on from an oversubscribed initial public offering, which raised $325.9 million, representing the third largest LIC IPO raising in... Show More

Aussie retirees have a love affair with shares, but not all share portfolios are created equal when it comes to providing sustainable income. This article focuses on the four things that pension-phase investors need to consider when investing in equities: tax, income, growth and regulations. Show More

Plato Income Maximiser Limited (ASX:PL8), a new Australian shares Listed Investment Company (LIC) with a high-income focus, has just launched. Show More

In the 2015 Federal Budget, changes were announced to the aged pension assets test. These changes have been legislated and come into effect from January 2017. The good news is that more people will be able to access the full pension while some part pensioners will receive slightly higher part... Show More

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In a turnaround almost identical to the UK Brexit vote, the US confounded all the pollsters by electing billionaire Donald Trump as the 45th President of the USA. And just like Brexit, initial share market reaction was very negative as the probability of a Trump win increased during vote counting... Show More

On 11 August 2016, Telstra announced it would return $1.5B in capital to shareholders, $1.25B in an off-market buy-back and $0.25B in an on-market buy-back. The off-market buy-back is similar in structure to the $1B 2014 Telstra buy-back. We still believe this is pretty much a token buy-back. At $1.25B... Show More

Macquarie Group (ASX:MQG) looks reasonable value at the moment trading at a 33% discount to the Industrials ex Banks vs. the five year average discount of 25% on a 5.6% dividend yield. It appears to us that its earnings are transitioning from more volatile investment bank-style earnings to annuity-style funds... Show More

At the end of August 2015, Myer (MYR) had a historical gross yield of 14.8% making it look attractive to many funds and investors seeking high yield. On 1 September MYR announced it will not pay a final dividend this fiscal year, and it would in fact be raising money... Show More

Unfortunately, for today’s retirees, traditional income generating assets such as cash or term deposits are yielding returns that are at all-time lows, and well below the 5% minimum drawdown rate. Luckily for retirees, there is still one asset class that is generating reasonable levels of income. Australian equities Figure 1... Show More