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Edition: 124

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Edition 124

  • 28 August 2015

Why invest in bonds?, the work test for SMSFs, engagement with lifecycle funds, responsible investing for retail investors, investment management ethics, global investment opportunities, and the changes to the assets test explained.

Busting the bond myth

A common observation at the moment is that if interest rates ‘can only go up’, why hold bonds? While prices fall as rates rise, there is a role for various maturities in a diversified portfolio.

Meeting the work test for contributions

Not all superannuation is the same. When making contributions after turning 65, it seems the rule for the work test is different for SMSFs and public funds.

Lifecycle funds increase super engagement

Engaging people with their superannuation is the holy grail for the wealth management industry. Lifecycle funds can help take the customer on a long term journey provided the communication is good.

Responsible investing is now retail and mainstream

Banks are walking away from resources projects, super funds are dumping stocks based on human rights issues and climate change related shareholder resolutions are gaining wide support.

Do ethics and investment management fit together?

A virtuous life is one of aspiration – to be good, to be fulfilled, and to make a contribution. Ethics is not about doing your duty reluctantly, but rather asking the confronting question: what do I want to be remembered for?

Why global? More choice and cheaper pizza

Investing in global opportunities allows a portfolio to benefit from trends and industries that are not available in Australia, and even when a company is listed here, it may be cheaper overseas.

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