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Edition: 261

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Cuffelinks Newsletter Edition 261

  • 6 July 2018

Going global, mid-cap focus, 2017-2018 market results, Cooper on retirement, Ruthven on wealth distribution, rules of global investing, higher rates.

Not too big, not too small: the advantages of mid-caps

Companies ranked 51st to 100th by ASX capitalisation are in the mid-cap sector. They have better historic returns, industry diversity, insider ownership, and growth prospects than the S&P/ASX50.

The importance of corporate culture in investing

The definition of capitalism needs modernising, including how a company treats its personnel and customers. Socially responsible companies significantly outperform the averages in job creation and ROE.

Winners and losers in sharemarkets, 2017/18

The Australian market again delivered strong returns in 2017-2018 with big sector differences, but there were large variations in global performance depending on the currency hedging strategy.

Finding opportunities in listed global funds

This exclusive early access to IIR's Monthly Report includes the latest recommendations on global LICs, and a summary of the Active ETFs listed on the ASX. There's now a lot of choice in global listed funds.

Time to build a super system fit for retirement

Life expectancies have increased dramatically since the nineties, but the uncertainty is forcing retirees to live too frugally. The super industry is switching its attention to the drawdown phase to find better solutions.

In Australia, who’s got the money?

Income taxes in Australia are over 2.5 times larger than the 'spending' taxes such as GST, excise, and stamp duties. The latest legislation ignored reforms in taxing spending over saving again.

Going global? Don’t break the 'Golden Rule'

In many valuations, the ‘Golden Rule’ is being broken. Earnings growth is assuming the sort of strong economic activity that would trigger higher interest rates, yet investors are delinking the two.

Will the Royal Commission ban all incentives? Not quite

The Royal Commission criticises incentives and rewards across financial services, but they have a place if they are properly structured. Just ask the legal people involved how their hard work is recognised.

Most viewed in recent weeks

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

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