Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Caveat Emptor? Your criticisms of financial products answered by the manufacturers

Do you have a criticism of a financial product, and want an explanation? We have a new regular feature called 'Caveat Emptor?'

Caveat Emptor is defined as: 'the principle that the buyer alone is responsible for checking the quality and suitability of goods before a purchase is made.' So we want to help the buyers, and you can contribute by sharing your concerns.

We invite readers to send us criticisms or questions about any financial product, and we'll ask the product manufacturer or another expert to respond. Write to us at [email protected].

We ask anyone else with a constructive view to then write a comment on our website. The Q&A will be collected under a new menu tab called 'Caveat Emptor?' for future reference. We hope this becomes a good reference point for product enquiries.

 

5 Comments
Ian Kelly
December 13, 2013

Folks, Just a short note before Christmas – Your site is outstanding. I would like to say thank you for your efforts with the Cuffelinks Emails.

Probably the best source of commentary and information I have seen over the past 20 years – the last 15 as an adviser.

I trust you and all the team that put the effort in – get the opportunity to enjoy a break and spend time with those closest to you over the next month or so

Michael Connor
December 04, 2013

My concern lies with shares. I don't believe there is enough done by the overall industry to list new companies in Australia's strengths being Agriculture/Food and Tourism. Many companies seem to get a start in say mining or technology and then fall by the wayside destroying shareholder funds. These funds could be utilised elsewhere in say as an example Darryl Lea, Spring Gully type operations.

Editor
November 30, 2013

Thanks for the questions coming in for Caveat Emptor? We have passed them to appropriate people and will chase a response next week. Keep them coming!

Rob Prugue
November 29, 2013

My personal pet peeve are "Dividend Income Funds". The name would imply that such funds are invested so as to maximse DIVIDEND income, be it franked or not, and as CASH (or even DRPs). Yet, the number of so called "Dividend Income Funds" whose investment strategy is to access income-like outcome through the usage of derivative arb strategies confound. Whilst I accept such strategies may yield (pardon the pun) income like results, they are not Dividend, they are not tax effective, nor as they paid out as received CASH. If we're fair dinkum, then why not call them what they truly are: "Synthetic Arb Funds"? Rhetorical question as any agent could answer why they're not.

Another, perhaps, would be to highlight how investment paper issued by banks are NOT term deposits?

Caveat Emptor indeed, but the "caveat" is fair only when there's symmetry in information I'd suggest.

Graham Hand
November 30, 2013

Thanks, Rob. So we don't show any favouritism, any volunteers to defend these income funds? Or we'll track one down.

 

Leave a Comment:

banner

Most viewed in recent weeks

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

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?

Welcome to Firstlinks Edition 627 with weekend update

This week, I got the news that my mother has dementia. It came shortly after my father received the same diagnosis. This is a meditation on getting old and my regrets in not getting my parents’ affairs in order sooner.

  • 4 September 2025

5 charts every retiree must see…

Retirement can be daunting for Australians facing financial uncertainty. Understand your goals, longevity challenges, inflation impacts, market risks, and components of retirement income with these crucial charts.

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.

Super crosses the retirement Rubicon

Australia's superannuation system faces a 'Rubicon' moment, a turning point where the focus is shifting from accumulation phase to retirement readiness, but unfortunately, many funds are not rising to the challenge.

Latest Updates

Investment strategies

Why I dislike dividend stocks

If you need income then buying dividend stocks makes perfect sense. But if you don’t then it makes little sense because it’s likely to limit building real wealth. Here’s what you should do instead.

Superannuation

Meg on SMSFs: Indexation of Division 296 tax isn't enough

Labor is reviewing the $3 million super tax's most contentious aspects: lack of indexation and the tax on unrealised gains. Those fighting for change shouldn’t just settle for indexation of the threshold.

Shares

Will ASX dividends rise over the next 12 months?

Market forecasts for ASX dividend yields are at a 30-year low amid fears about the economy and the capacity for banks and resource companies to pay higher dividends. This pessimism seems overdone.

Shares

Expensive market valuations may make sense

World share markets seem toppy at first glance, though digging deeper reveals important nuances. While the top 2% of stocks are pricey, they're also growing faster, and the remaining 98% are inexpensive versus history.

Fixed interest

The end of the strong US dollar cycle

The US dollar’s overvaluation, weaker fundamentals, and crowded positioning point to further downside. Diversifying into non-US equities and emerging market debt may offer opportunities for global investors.

Investment strategies

Today’s case for floating rate notes

Market volatility and uncertainty in 2025 prompt the need for a diversified portfolio. Floating Rate Notes offer stability, income, and protection against interest rate risks, making them a valuable investment option.

Strategy

Breaking down recent footy finals by the numbers

In a first, 2025 saw AFL and NRL minor premiers both go out in straight sets. AFL data suggests the pre-finals bye is weakening the stranglehold of top-4 sides more than ever before.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.