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Peter Rae

LIC reporting season wrap for 2017

LICs have generally retained their dividends despite some softness in income received from underlying investments, and three prominent, longstanding LICs are worth a look at current prices.

Summary of LIC performance over a solid year

A review of the Listed Investment Company landscape, including where value lies in LICs trading at a discount, but also the healthy premiums where caution is needed in case the popularity of the manager wanes.

Do LIC options provide investors with value?

It’s common practice for LICs to issue ‘free’ options with their initial public offerings to offset the effect of listing costs on NTA. So, why are LIC options rarely exercised?

Why LICs differ in dividend sustainability

With the majority of Listed Investment Companies reporting lower earnings in the six months to 31 Dec 2016, it's the LICs with adequate profit reserves that can offer dividend sustainability for investors.

Focus on LIC dividend sustainability

There are many LICs with current dividend yields above the average of 4.4%, often fully franked, and there are ways to know whether the dividend is likely to be sustainable. Not all LICs are managed the same way.

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Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Economy

Was life really better in the good old days?

Are we worse off than previous generations? Lately, there seems to be a heightened level of angst that economic conditions are getting harder and that the two-party political system (and maybe democracy too) is failing voters.

Retirement

Australia has saved $4.5 trillion for retirement. Here's what matters more

Most Australians approaching retirement can tell you the exact dollar value of their super account. But success depends on more than a sizeable balance. Here's four key questions to ask yourself at the start of the financial year. 

Who gains in an AI-supercharged economy?

AI is already reshaping the economy, but companies building transformative technologies rarely capture the greatest long-term value. Instead, those benefits accrue to the users. We may well see this pattern reproduced. 

Taxation

Div 296's million-dollar reset worth $25,000

The 'cost base reset' for the new super tax is being sold as protection for pre-July gains. A worked example shows $1M of protection is worth about $25,000, and the real deadline has not passed.

Latest from Morningstar

The forecasting fix that Wall Street missed

Asking whether markets are overpriced may be the wrong question. New research suggests that traditional valuation metrics used to forecast returns may have been misread. Here are five takeaways for investors.

Investment strategies

Should a fund manager invest their own money differently?

Investors often like the idea that fund managers should invest client money exactly as they invest their own. But reality is more complicated. Unique circumstances make a different approach rational and, at times, beneficial.

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