Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

19 September 2026

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:
Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Latest Updates

Planning

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

Investment strategies

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

Economy

Population growth masks Australia’s productivity problem

For years, investors have benefited from a seemingly reliable growth story. But recent national accounts raise uncomfortable questions about what has really been driving Australia’s economy and whether that can continue unchecked.

Investment strategies

Why tomorrow’s winners may not be today’s index leaders

The stocks that built retirement balances over the past decade now dominate many portfolios. The new challenge is whether these companies can continue meeting the increasingly high expectations embedded in today's share prices.

Investing

What earnings surprises reveal about future returns

Sometimes the most important information in an earnings result isn't the number itself. It's the possibility that the market's assumptions have been fundamentally wrong and future earnings may look very different.

SMSF strategies

Individual SMSF Trusteeship directly liable for ATO fines

A rarely discussed detail buried in SMSF structures could dramatically change who wears the cost when something goes wrong. With penalties rising, a decision many dismissed as administrative may deserve a second look.

Investment strategies

The currency bet you didn’t know you made

Buying global shares means making two bets: on the companies and on the Australian dollar. Most investors consciously choose only the first. Last financial year, the second bet cost 8.5% in returns for many investors.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 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.