Thought Leadership

Death and (more) taxes...

Australia is one of the higher taxed countries in the world, which pays for a state-run health care and welfare system that is the envy of many societies.

However, with its population ageing like many other developed nations, the costs of maintaining this are ballooning and the federal budget isn’t forecast to swing to surplus until the fiscal year ending June 30, 2021.

If one assumes Labor were to win the next election it likely would introduce new taxes to fund social programs and these could target expatriate Australians.

Risk-adjusted returns for dummies

When talking about asset allocation in an investment portfolio whether it be for an institutional client or individual is that diversification across assets that don’t typically move in the same direction at once (uncorrelated) is key.

The mantra is asset allocation, as opposed to individual securities selection, drives more than 90% of performance. And this has been proved empirically over the years. What is also hugely important in conjunction with making these decisions is assessing the risk-adjusted returns for a portfolio or individual investment.

Is purchasing property a pipe dream for Australian and New Zealand investors?

For Australian and New Zealanders, the thought of purchasing real estate, for many, is nothing more than a pipe dream. Since the advent of ultra-low interest rates in both countries after the global financial crisis, the prices of residential homes in major cities including Sydney, Melbourne and Auckland, Hase skyrocketed. So, for those who have missed out on entering this market, or for those worried about house prices being over-inflated and a potential for a significant downturn in the note-too-distant future, the question is what should they do now?

Australian banks are responding to threats of fintech disruption

However, their step approach to change has similarities to the local taxi industry’s reaction to ride-sharing. The big losers from the arrival of Uber and others in more recent times were taxi owners, including investors who, cocooned by protective industry rules, ploughed money into taxi licences within their s​elf-managed super funds. Until recently such a strategy could have been profitable: So what went wrong?