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

 

  •   25 May 2018
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Property versus shares - a practical guide for investors

I’ve been comparing property and shares for decades and while both have their place, the differences are stark. When tax, costs, and liquidity are weighed, property looks less compelling than its reputation suggests.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

Latest Updates

Economy

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Superannuation

No, Division 296 does not tax franking credits twice

Claims that Division 296 double-taxes franking credits misunderstand imputation: franking credits are SMSF income, not company tax, and ensure earnings are taxed once at the correct rate.

Investment strategies

Who will get left holding the banks?

For the first time in decades, the Big 4 banks have real competition in home loans. Macquarie is quickly gain market share, which threatens both the earnings and dividends of the major banks in the years ahead.

Investment strategies

AI economic scenarios: revolutionary growth, or recessionary bubble?

Investor focus is turning increasingly to AI-related risks: is it a bubble about to burst, tipping the US into recession? Or is it the onset of a third industrial revolution? And what would either scenario mean for markets?

Investment strategies

The long-term case for compounders

Cyclical stocks surge in upswings but falter in downturns. Compounders - reliable, scalable, resilient businesses - offer smoother, superior returns over the full investment cycle for patient investors.

Property

AREITs are not as passive as you may think

A-REITs are often viewed as passive rental vehicles, but today’s index tells a different story. Development and funds management now dominate earnings, materially increasing volatility and risk for the sector.

Australia’s quiet dairy boom — and the investment opportunity

Dairy farming offers real asset exposure, steady income and long-term growth, yet remains overlooked by investors seeking diversification beyond traditional asset classes.

Sponsors

Alliances

© 2026 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.