Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 255

Cuffelinks Newsletter Edition 255

  •   25 May 2018
  •      
  •   

It's Scams Awareness Week, when the ACCC warns the public about emerging trends and techniques used by scammers. In 2017, Australian government agencies received over 200,000 scam reports with losses exceeding $340 million. The ACCC handled 161,000 scam reports for over $90 million, with investment scams exceeding dating and romance, as shown below. 


Source: ACCC Report, Targetting scams, issued May 2018.

Common tricks involve obtaining personal and bank details using copies of websites and account log-in pages. They even port mobile phone numbers to get around two-step authentication. Scammers infiltrate IT systems, watch email communications and imitate companies. 

The ACCC's Little Black Book of Scams is its most popular publication, and it's free in any quantity including mailing in Australia. Give a copy to family members who may be targetted.

Royal Commission investment fallout

As bank share prices continue to fall in the wake of the Royal Commission, there may be  a brighter side for investors. The reduction in risk appetite and increased regulatory impost on banks might make their debt and hybrid securities safer. Listed hybrids and subordinated debt are readily available on the ASX, and they are protected by larger capital buffers than in the past. There are other opportunities. As Justin McCarthy writes, the slower loan turnaround time and tighter compliance is opening the door for non-bank lenders, many of which are also listed companies. The current SME investigations by the Royal Commission show how difficult it is to obtain finance without home equity support, and the big banks are losing market share.

Roger Montgomery looks at disruptors in other industries, but warns that many innovations are better for consumers than the companies offering the new services. In the UK, Tesco has accepted defeat to Amazon by closing Tesco Direct, and Marks & Sparks has closed 100 stores.

SMSF changes and developments

We have two articles for SMSFs: Matthew Collins describes in more detail a way to avoid Labor's franking policy change, while Stephen Lawrence explains the attraction of putting Business Real Property in an SMSF and why it works so well for many business people.

With other investing ideas, Paul Gambale shows how the new Active ETFs compare with managed funds, Anthony Murphy gives a quick checklist for selecting good fund managers and Lydia Carstensen provides a short introduction to using bare trusts. On investor behaviour, Alastair MacLoed explains how people chose between different options in a retirement context.

This week's White Paper from BetaShares Capital is their latest ETF Report which shows 232 listed products worth about $38 billion, with the strongest inflows into international equities.

Graham Hand, Managing Editor

 

Edition 255 | 25 May 2018 | Editorial | Newsletter

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 606 with weekend update

The boss of Australia’s fourth largest super fund by assets, UniSuper’s John Pearce, says Trump has declared an economic war and he’ll be reducing his US stock exposure over time. Should you follow suit?

  • 10 April 2025

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

An enlightened dividend path

While many chase high yields, true investment power lies in companies that steadily grow dividends. This strategy, rooted in patience and discipline, quietly compounds wealth and anchors investors through market turbulence.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

Latest Updates

Investment strategies

Getting rich vs staying rich

Strategies to get rich versus stay rich are markedly different. Here is a look at the five main ways to get rich, including through work, business, investing and luck, as well as those that preserve wealth.

Investment strategies

Does dividend investing make sense?

Dividend investing offers steady income and behavioral benefits, but its effectiveness depends on goals, market conditions, and fundamentals - especially in retirement, where it may limit full use of savings.

Economics

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

Strategy

Ageing in spurts

Fascinating initial studies suggest that while we age continuously in years, our bodies age, not at a uniform rate, but in spurts at around ages 44 and 60.

Interviews

Platinum's new international funds boss shifts gears

Portfolio Manager Ted Alexander outlines the changes that he's made to Platinum's International Fund portfolio since taking charge in March, while staying true to its contrarian, value-focused roots.

Investment strategies

Four ways to capitalise on a forgotten investing megatrend

The Trump administration has not killed the multi-decade investment opportunity in decarbonisation. These four industries in particular face a step-change in demand and could reward long-term investors.

Strategy

How the election polls got it so wrong

The recent federal election outcome has puzzled many, with Labor's significant win despite a modest primary vote share. Preference flows played a crucial role, highlighting the complexity of forecasting electoral results.

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.