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Home / Author: Peter Rae

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.

Latest Updates

Fixed interest

Higher yields are creating opportunities in global bonds

Bond markets are adjusting to a new reality, but not in the ways investors expect. With markets repricing and capital competing for attention, investors may need to rethink where resilience and opportunity lie. 

Economy

Are we in a recession?

What if the warning signs are already everywhere? From supermarket aisles to company failures, investors are being bombarded with recession signals. But most face a different risk that can be just as dangerous for portfolios. 

SMSF strategies

Meg on SMSFs - Division 296 actuarial certificates

The tax bill might be yours, but the event that caused it may not be. A key Division 296 calculation can sometimes attribute earnings in ways that many SMSF trustees won't instinctively expect or fully appreciate.

Property

The first impact of negative gearing reform is not the tax bill

Negative gearing changes formally begin in 2027, but the first consequences may already be here. A subtle shift is quietly influencing who can borrow, how much they can access and which property strategies still stack up.

Economy

The oil market is running out of easy answers

The biggest threat to markets may not be what investors are watching. The numbers have stopped adding up and supply is harder to measure, with forecasts becoming simple guesses. A more fragile reality is being masked.

Investment strategies

The state of investor knowledge in Australia

Australians are investing more than ever, yet a surprising divide is emerging between those building wealth effectively and those making costly mistakes. Surprisingly, the gap has little to do with income, age or starting capital.

Taxation

Complexity and capital gains

A case study shows that the ‘30% minimum CGT’ is a poorly conceived tax that adds significant complexity to an already over-complex system. A less complicated model would create a much fairer progressive tax scale.

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