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31 October 2026

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Welcome to the Firstlinks Newsletter Edition 312

Welcome to the Firstlinks Newsletter Edition 312
Graham Hand

Graham Hand


Today is 27 June and 30 June is a Sunday, so take a few minutes to think about EOFY actions. From Monday, unless they receive a member request, super funds will cancel insurance on small accounts which have been inactive for 16 months. Also, bring forward expenses for a tax deduction this year. Make contributions to super today, not tomorrow, to ensure the deadline is met. What else?

It's also time to consider portfolio rebalancing for the new year. If an asset has done especially well, do you let it run or sell based on a longer-term strategic allocation? The Reserve Bank Governor, Phil Lowe, was not much help this week, as confused as anyone:

"There are investors who think the outlook is sufficiently weak that they expect central banks right around the world to cut interest rates but they are not worried about corporate profits or credit risk. I don't really understand that ... So to me it's a strange world."

According to Frontier Advisers, returns in coming years will be about half the target of CPI plus 3.5% (net after fees) used by many large superannuation funds. 

Portfolio return estimates


In the chart, DAA is Dynamic Asset Allocation, the expected returns for the next three and five year period. RTE is Return to Equilibrium over 10 years, while CMA is Capital Markets Assumptions for a long term. The DAA portfolio is a typical 70% growth, 30% defensive, and shows investors should temper their expectations for many years.

Frontier suggests investors should consider ways to improve returns such as liquid alternatives, investing in growth assets linked to secular themes, and active management.

These issues are developed in many of this week's articles ...

Our popular Interview Series continues with AMP Capital's global property head, James Maydew. He explores global real estate trends and makes the case for active management as demographics creates winners and losers.

On another major global trend, Joe Magyer describes how Australians underestimate the value of the networks effects driving many technology success stories.

Andrew Varlamos says the franking credit debate highlighted an imbalance in SMSF asset allocations, and it's a warning to set a more fit-for-purpose portfolio even if the politics has gone.

Leading Australian futurist Phil Ruthven describes company world best practice targets, and shows the industries where Australian companies are meeting the global standards.

Each year, we highlight Mary Meeker's in-depth review of internet and technology trends, and it's worth at least watching her 30-minute video summary. 

US companies use ultra-cheap debt to buy their own shares and boost earnings per share, but John O'Brien believes if the party stops any some reason, company values will be reassessed.

Senator Jane Hume, the new Assistant Minister for Superannuation, Financial Services and Financial Technology (a new title, recognising fintech's growth), has given her first speeches and interviews. Our selected highlights show her early roadmap.

This week's White Paper further develops the views of interviewee James Maydew for the Australian property market, including where the pockets of strength and weakness lie. When 48% of the index is in retail, is that the correct investment?

For an EOFY review, see our Education Centre for LIC reports, details on all ASX-listed investment products, ETF reports from Vanguard and BetaShares and hybrid pricing from NAB/nabtrade.

Graham Hand, Managing Editor

 

For a PDF version of this week’s newsletter articles, click here.

 

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