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Edition: 135

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Edition 135

  • 20 November 2015

Changing benchmarks as prime bank paper fails to trade, the rise of social infrastructure real estate investment, economy slower than expected, pricing ETFs across time zones, and what makes for a great global business.

Real estate social infrastructure coming of age

Demographic and social changes, longevity, cash-strapped governments and higher density living are all driving a shift towards investments in real estate social infrastructure. Here are some risks and benefits.

Australia’s pending refinancing revolution

Smaller financial institutions have become more competitive in the home loan market, and as they seek new funding sources, the market is doubting the value of the traditional prime bank BBSW benchmark.

World economy will be ‘slower for longer’

This period of ultra low interest rates and government-stimulated economies has created an overly optimistic view of world economic growth, which will have implications for future retirement savings returns.

Dealing with time zones when pricing global ETFs

When Exchange Traded Products that track international markets are priced on the ASX, the closing price of the underlying offshore market often varies from the opening price here.

Great businesses where customers do the work

Facebook, Tripadvisor and Alibaba - they’re great businesses because they require no inventory, have low capital costs, relatively few staff and their own customers generate the content.

Most viewed in recent weeks

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

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. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

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.

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.

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.

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