Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 314

Welcome to the Firstlinks Edition 314

Welcome to the Firstlinks Edition 314
Graham Hand

Graham Hand


Strange times indeed. Despite US and Australian equity markets near all-time highs and superannuation funds enjoying record inflows, the wealth industry is undergoing a severe overhaul. Unprecedented numbers of fund managers are not only struggling but closing their doors. AMP is desperate to define a coherent advice strategy. Deutsche Bank announced a worldwide cull of 18,000 jobs, with an Australian closure of equity research, trading, sales, derivatives and capital markets. Financial advice groups are wondering how they will survive without grandfathered commissions, and many advisers will leave the industry.

What is disrupting asset managers? We lead with 10 reasons why many fund managers are quitting the market or shutting funds, and it has little to do with the popular excuses for everything like the Royal Commission, the Productivity Commission or technology changes.

Continuing our Interview SeriesNathan Hughes of Perpetual Investments explains how he manages an ethical fund and the importance of sticking to some long-term, proven principles.

Last time I went to Europe, €1,000 cost me A$1,620, but at the airport, the price would have been over A$2,000. Marcus Christoe offers four better ways to manage your FX travel needs.

What a turnaround in property since the election! Justin McCarthy shows why it has improved, and the implications for investors in the fixed interest funding markets.

Water resources and agribusiness have made headlines recently, and Cullen Gunn says investing in food and water assets is undergoing much greater sophistication.

Into the tax year, Julie Steed explains the new work test exemptions, while Warren Bird pushes back on those people who think they are somehow entitled to an age pension.

We prefer to focus on enduring investing ideas rather than speculate about the direction of markets. Every day, there are opposing views about the future prospects for the economy and stockmarkets, and I have no better predictive abilities than rolling a dice. Central banks seem determined to do 'whatever it takes' to prevent falling prices driven by deflationary forces, and who knows when the market will punish them. Selling 'risk assets' and holding cash for protection has been the wrong strategy for almost a decade.

This week's White Paper by MFS Investment Management called 'Emphasize the essentials' takes a similar critical view of trying to forecast the unknowable, including:

"It's better to look at what makes companies unique - their competitive advantages, ability to generate free cash flow and intellectual property - than it is to guess whether their cost of capital will decline by 25 basis points."

Graham Hand, Managing Editor

 

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

 

  •   12 July 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.

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.

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.  

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.