Today I write about the following puzzle: Over 90 per cent of the equity raised by Australian companies is funded via the domestic stock market. Yet when these same companies issue safer debt (or bonds), which have predetermined returns and rank above shares in bankruptcy, local capital is suddenly missing... Show More
In the scramble for customers, some fund managers and superannuation providers are taking on additional risk, investing in a range of assets and deeming them ‘cash’ when clearly they are not. Show More
In the AFR today I argue that Peter Costello is right that there is a role for the government to play in providing super savers with a public sector alternative to existing super funds---in fact, I argued exactly the same thing at length way back in 2009 with my "KangaSupa"... Show More
In the AFR I argue that super funds need to radically overhaul their approach to asset-allocation by offering different options for renters and home owners, which have fundamentally different portfolio preferences given the way they are investing their wealth outside of super. The bottom line is that about half of... Show More
Excerpt from my column in the AFR today: Show More
Last week's AFR contains an interesting article on housing affordability and a new front on the crisis. It addresses the emerging issue of retirees draining their superannuation savings to pay off their mortgages and then go on the aged pension. Effectively defeating the purpose of superannuation. Show More
If, like me, you assumed Federal Treasurer Scott Morrison was going to go easy on well-established superannuation savers in the Budget, you likely share my slightly queasy feeling. It turns out we’re more alone that we first thought and that a changing landscape may call for a change in strategy. Show More
It seems clear that Australia is heading towards an adjustment to the rate of Goods and Services Tax (GST). Further, it is likely that the scope of the GST could be extended to goods & services that were previously exempted, one of which is financial products. It has been strongly... Show More
The Australian Financial Review is reporting that today Brad Cooper, the chief executive of BT Financial Group, will call for “retirees to start paying income tax on annual superannuation earnings of more than $150,000 in a push to secure changes so the system can meet the retirement and budgetary needs... Show More
Should the GST rate go up? Yes, we think the GST should probably rise to 15 per cent – but it needs to be part of a comprehensive taxation adjustment process. The instigation of a GST debate from a State Premier is another example of the chaotic nature of economic... Show More
While Warren Buffett’s recent investment in IAG Limited suggests that parts of the Australian equity market represent a growth opportunity, it also exposed how inefficient the Australian capital market has become. In this context, efficiency is not measured by price movement or price performance; rather it is measured by the... Show More
A new wall of super money is set to radically alter Australia’s investment market and returns. The Australian market is being hit by a compounding wall of superannuation money, which we think will significantly alter the outlook and composition of returns for the next decade. This has serious implications for... Show More
The economic landscape as observed by RBA Governor, Glenn Stevens acknowledges that low interest rates are here to stay – no matter what happens. This is contrary to the thinking of Treasurer, Joe Hockey whom has suggested that higher rates will follow on from Australia’s debt problems. Investors may see... Show More
The big disruptive names – Facebook, Google , Apple – have been gyrating in recent days as Wall Street tries to work out whether they will disappoint in the current earnings season, with Facebook starting the ball rolling for the majors on Thursday (Australian time) followed by Google, Amazon and... Show More