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Edition: 71

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Edition 71

  • 18 July 2014

Public hatred of the finance industry, what to be aware of with hybrid securities, investing in junk bonds, shares vs bonds following Australia's big default, and the shortcomings of emerging market indices.

Does the public hate us?

When two Nobel Laureates sit down to discuss the topic 'Why does the public hate us?', you know there's a major problem. And the Murray Interim Report raises many concerns about wealth management in Australia.

The perils of hybrids

With the current low interest rates, many investors are building exposures to hybrids unaware of the risks. Check the warnings of legendary investor, Ben Graham, and consider if hybrids can withstand a downturn.

Why would you invest in junk?

Sub-investment grade investments, or ‘junk bonds’, pay well but carry a higher risk of default. If the risk is managed properly, a broad portfolio of high yield securities can be a worthwhile investment option.

Australia’s default: shares versus bonds through the crisis

During the Australian government debt default, how did the performance of equities versus bonds compare? It was a time when investing in bonds was more common than equities.

Which countries should be classified as emerging market?

Emerging market indices have become poor representations of the investment opportunities in that asset class. Should Taiwan and South Korea still be there? And which newly emerging markets are missing?

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

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