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Cuffelinks Newsletter Edition 295

  • 1 March 2019

Large funds may also lose franking refunds, what is taxable income? insider on Hayne, asset allocation, high yield bonds, find the S-curve, the cloud.

On franking, all public funds are not the same

Many commentators are assuming all industry and retail funds can utilise their franking credit refunds, but a case-by-case check is required. Plus hard words from a cranky reader.

Cloud computing is an unheralded success

Favourable economics and greater security foster the sharing of remote IT resources, and it has revolutionised how companies meet their computing requirements. The cloud's share will only get bigger.

In asset allocation, you can have anything but you can’t have everything

Modelling different and complex objectives in an asset allocation is difficult because the goals are often contradictory, but a new technique puts a risk score on each possible strategy.

The case for global high yield bonds

Few Australians include global high yield bonds in their asset allocations, but with new ways to access the market locally, they are worth considering as a diversifying asset class.

The S-curve beats the macro every time

Too many investors focus on macro trends, when what really matters is catching a company in the right part of its S-curve, when its earnings and products are about to take off.

Inside view: Will the Hayne Report bring real change?

Professor Pamela Hanrahan of the UNSW provided much of the background material used by the Financial Services Royal Commission, and she reviews the final outcome in this BusinessThink interview.

Hey Mr Bowen, the franking credit is part of my taxable income

The Labor franking credit proposal creates a group of people who count franking credits as taxable income, and another group that doesn't. A basic principle of tax should be horizontal equity between investment structures.

*Survey on Labor's franking credit proposal*

This week we have a short survey on your attitudes to Labor's franking credits proposal. It should take less than two minutes to complete, unless you want to have a rant.

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

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.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

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