Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 312

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.

 

  •   28 June 2019
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

The refinery problem: A different kind of energy crisis in 2026

The Strait of Hormuz closure due to US-Iran conflict severely disrupted global energy supply chains. While various emergency measures mitigated the crude impact, the refined product market faces unprecedented stress.

3 ways to defuse intergenerational anger

With the upcoming budget increasingly likely to include bold proposals to alter the tax code I’ve outlined three incremental steps with fewer unintended consequences.

Latest Updates

Investment strategies

War can’t be good, can it?

War brings immense human suffering and geopolitical chaos, but historically, equity markets have shown a certain detachment and resilience amid conflict, leading to increased profitability despite initial panic.

Property

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

Superannuation

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

Investment strategies

There’s more to software than just code

AI-driven fears of collapsing software moats has triggered indiscriminate sell-offs. This has created mispricing opportunities as markets overreact to uncertainty and rising discount rates.

Economics

Europe: A new growth trajectory powered by reform and investment

Europe is undergoing a major transformation driven by security threats, US pressure, and a shift from austerity to growth. EU member states are taking proactive measures to enhance competitiveness and resilience.

Investment strategies

Orbital AI data centers prepare for launch

The new space race is driven by AI as data centers in space offer continuous solar power and reduced environmental impact. Orbital AI aims to speed data processing and ease Earth's resource strains.

Retirement

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

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.