The government’s plan to increase taxes on super balances above $3 million will have a costly impact on the SMSF sector, with thousands of members likely to face liquidity stress, according to new research from the University of Adelaide’s International Centre for Financial Services.
Australian retail investors are trading less since the height of the pandemic, as uncertainty over the direction of markets prompts them to accumulate cash. But while even the pros may be tended to blink, the overwhelmingly buy-and-hold retail cohort is proving its savvy, says nabtrade’s Gemma Dale.
The rise of AI is part of a global knowledge revolution that is reshaping every aspect of our lives, according to AI thought leaders at the Australian Investor Association’s recent investX conference. While it’s new territory, the same investment principles should apply in picking the winners from the losers.
Most Australian financial professionals are now using smart beta ETFs and other passive investments in their clients’ portfolios, a new VanEck survey shows, continuing a three-year trend away from active management approaches.
The government’s plan to include unrealised capital gains in earnings calculations when it doubles the tax rate for super balances above $3 million is “flawed policy”, according to the SMSF Association. It says there’s an easy fix.
Whether an investment is expensive or cheap is a key and often overlooked driver of future returns, explains AMP’s Shane Oliver. At the moment, starting points signal a brighter medium-term outlook for some asset classes than for others.
With higher interest rates and inflation upending investment dynamics, advisers say they’ve already begun transitioning their clients toward fixed income and defensive assets following a long period when duration didn’t have much to offer.
Derivatives should not be a “dirty word” for investors looking for better returns, capital protection and diversification at a time when volatility and higher inflation appear here to stay, according to Atlantic House Group’s Andrew Lakeman and Global X’s Evan Metcalf.
The additional income allowance had been set to end in 2024, but the government wants to make it permanent, enabling older Australians to earn nearly $12,000 in annual work income without affecting their pensions.
While many sustainable funds use negative screens to avoid stocks with poor ESG scores, Martin Currie’s Naomi Bant says engagement with companies that can provide a net benefit to society leads to better investment and sustainability outcomes.
