Equities, fixed income, and alternatives tend to get all the media attention and headlines, but there's an oft-forgotten asset class that underpins most investor's portfolio's: cash. Low rates around the world have seen cash fall out of favour with investors in recent years. In this wire, I'll explain some of... Show More
Forecast for shares income, including from the banks, remains solid. For the “glass half empty” thinkers, there is plenty of bad news to focus on in 2019 – the Trump trade war, Brexit, falling house prices, the final report of the Financial Services Royal Commission, political risk and more. Show More
I know I’m not alone in saying that watching old episodes of Seinfeld is one of my favourite ways to unwind – I’ve even done the Kramer Reality Bus Tour in New York! Yet it came as a bit of a surprise when the episode ‘The Opposite’, where George Costanza... Show More
With franking credits in Labor’s sights, and half of Aussie income coming from a handful of stocks in sectors under duress, we asked Dan Pennell, Senior Portfolio Manager at Plato Investment Management to outline what's on offer through global equity income investing. Show More
In recent years, expected returns and income from traditional income asset classes have been low following years of global yield compression. As a result, investors have increasingly looked towards growth assets, like equities, to meet their income requirements. The standard strategy has been to target an equities mix that tilts... Show More
In our previous paper entitled “Which superannuation funds may be affected by the ALP franking credit proposal” we found that members of many superannuation funds, not just SMSFs, may be impacted by the ALP proposal to no longer refund franking credits. In this new paper, we consider which individuals, investing... Show More
Dr Don Hamson from Plato Investment Management is always on the lookout for the best income opportunities from equities. His research suggests that there has been a 40% increase year on year for the dividends being paid out from the resources sector. Show More
Self-Managed Super Funds (SMSFs) typically invest in a rather narrow range of assets: equities, fixed income, property, private equity or infrastructure, and cash. Ashley Burtenshaw, Partner at Gryphon Capital Investments, says these assets are increasingly correlated under the label of ‘risk-on assets’, reducing the benefits of diversification. Show More
Are Australian bond-like proxies going to suffer a bondcano moment? Certainly, stocks that have defensive characteristics have been sold down in recent months. And bond bears would have it that they are collateral damage from rising US yields. However, we believe this is a false narrative. Hence, we need to... Show More
Investors hunting for yield from listed companies today face unreliable yields, and falling capital values as rates creep higher, as well as new additional risks posed by government policies. However, investors can diversify their income and access comparable yields from other parts of the market not exposed to such headwinds. Show More
Once upon a time, investors seeking a reliable 7% yield from their investment could simply park their cash in a term deposit. These days, yields on those products are a shadow of their former selves, barely even keeping ahead of inflation. Show More
Despite the complex name, securitization is a simple concept. Securitization is taking an illiquid pool of assets and converting them to liquid securities. Securitization got a bad rap in the wake of the GFC, but in Australia, there are important differences to the “sub-prime” market in the USA. This video... Show More
John Murray, Managing Director of Perennial Value Management, says that one of the most common complaints he hears from investors is that term deposits aren’t generating sufficient income to “put enough bread on the table”. 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
On average, companies in the top 10 per cent of expected dividend yield deliver negative earnings growth, negative dividend growth and underperform the market over time, our analysis suggests. To find the companies with genuinely sustainable dividends, you need to dig much deeper than these simple historical measures. Show More
If you already own Hybrids you’ll be familiar with some of their benefits: attractive yields, access to franking credits and lower volatility relative to equities. However, as terms and conditions differ from security to security, Hybrids can be a complex and admin intensive asset class for investors. Show More
We often hear the benefits of investing offshore, however, accessing attractive dividends is rarely given as one of them. Analysis from the team at Plato Investment Management has identified over 700 companies not listed on the ASX that deliver a yield of 4% or above. Dr Don Hamson, Managing Director... 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
There was a time when Telstra was a staple of almost every Australian investor’s portfolio. Stable earnings and a big fully-franked yield meant that it never had problems attracting buyers. Things are different now. After cutting its dividend in August, Telstra is now down >30% year to date. Show More
The low interest rates of recent times along with periodic turmoil in investment markets has provided us with a reminder of the importance of the income (cash) flow or yield an investment provides. It’s particularly important for those relying on investment income to fund their living expenses. As with all... Show More
