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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

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Back to the future - Why indexing CGT is a good idea

A return to indexation of capital gains would be a fairer way to compensate households for the effects of inflation than the current discount. Importantly, it opens the door to future, broader reforms to stop the taxation of inflation.

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

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