Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 246

Cuffelinks Newsletter Edition 246

  •   30 March 2018
  •      
  •   

It's not just cricket where it's just not cricket

Ethics and culture dominated the hearings at the Financial Services Royal Commission, and the cameras recorded evidence of surprising misconduct and negligence. And so it was with the Australian cricket team in South Africa. The cameras caught the illegal tampering with the ball, and the confessions by Steve Smith and Cameron Bancroft were as cringeworthy as those of the bank executives.

The full Cricket Australia media release on the findings against the players is here.  

It's not difficult to draw comparisons between cricket and the banks. CBA (sponsor of cricket) is undergoing an executive purge, with the departure of another three c-suite members announced this week and more to come. The same has now happened in the c (cricket)-suite. The umpire, Commissioner Kenneth Hayne, is investigating incidents which will lead to major changes, as they have in cricket. The hubris of senior executives and cricketers put one goal (profit or winning) above all others, blurring the now-infamous 'line' of responsibility. All are paid millions in highly-privileged positions. The boards of cricket and banks talk of the need to rebuild trust and pride.

The decisions taken by both parties are equally unpleasant, and like Australia's sledging, the behaviour has been going on for too long. It's almost 20 years since the publication of Naked Among Cannibals on bank culture, and a major review of cricket was undertaken in 2011 by Don Argus, ironically a former CEO of National Bank. 

Vinay Kolhatkar looks at crossing the imaginary line in cricket and business, while Ashley Owen finds a curious statistic in the history of Australia versus South Africa.
 

David Warner sledges angrily and the team thinks it's a great laugh. He developed the ball-tampering plan and has been banned from team leadership positions forever. Source: AP. 

Franking credit 'pensioner' exemption

Feedback on the impact on 'pensioners' has forced a Labor policy rethink, but they use a confusing terminology. Someone drawing a pension from superannuation is not a 'pensioner' unless they are also on an age or disability pension. Jon Kalkman argues the real targets are zero taxpayers and the incentives increasingly encourage people not to self-fund their retirement. Geoff Walker believes the partisan debate cannot be won on logic alone. John Maroney, CEO of the SMSF Association, said:

"In the future, there will be no protection for SMSF retirees who may need part government support to supplement their superannuation income, creating an unfair, two-tiered and complex treatment of SMSF members ... (they) are worse off than people with less savings but refundable franking credits and a part pension." 

Investment markets  

Aaron Minney explains how loss aversion influences retirement investments, while Ilan Israelstam updates the data on the growth and use of Australian ETFs.  

Even for investors with little interest in bonds, these markets offer warnings, and Roger Montgomery sees early signs of stress. Charlie Jamieson expects the tailwind from decades of falling rates to become a headwind, especially for lower quality assets.

This week's White Paper from Colonial First State Global Asset Management looks at how 'value' and 'growth' managers have performed, and the differences are often huge in the same asset classes.

Graham Hand, Managing Editor

 

Edition 246 | 30 Mar 2018 | Editorial | Newsletter

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Latest Updates

Retirement

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

Shares

Boom, bubble or alarm?

After a stellar 2025 to date for equities, warning signs - from speculative froth to stretched valuations - suggest the market’s calm may be masking deeper fragilities. Strategic rebalancing feels increasingly timely.

Property

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Economy

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Shares

Is the iPhone nearing its Blackberry moment?

Blackberry clung on to the superiority of keyboards at the beginning of the touchscreen era and paid the ultimate price. Could the rise of agentic AI and a new generation of hardware do something similar to Apple?

Fixed interest

Things may finally be turning for the bond market

The bond market is quietly regaining strength. As rate cuts loom and economic growth moderates, high-quality credit and global fixed income present renewed opportunities for investors seeking income and stability. 

Shares

The wisdom of buying absurdly expensive stocks (or not!)

Companies trading at over 10x revenue now account for over 20% of the MSCI World index, levels not seen since the dotcom bubble. Can these shares create lasting value, or are they destined to unravel?

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.