Indholdsfortegnelse for March 2023 i Money Magazine

MY MONEY, MY LIFE It all started for me around 30 years ago. I went to a seminar about the sharemarket and I thought to myself, “It's about time I took control.” I was flying high as a national manager for a large multinational company. I started to trade alongside my job and then the unexpected happened: I lost the use of my arms through an unexplained tendon condition. Even simple tasks such as opening doors were a painful daily struggle. I had to quit my terrific job and told my accountant that I was going to trade full-time. He laughed in my face and told me that barely anyone makes it as a full-time trader. I got angry … really angry. And then I learned how to type with…

Markets seem to have recovered in the run-up to China's reopening, after it pivoted away from its zero-Covid policy. Equities in particular are pricing in expectations of an economic recovery. Our base case is for a fairly brisk reopening. The spike in Covid cases brought on by the reopening may lead to short-term pain in the economy, with consumers responding cautiously. However, it will open the door for a quicker recovery from the third quarter and lead to higher growth for 2023. Recent data suggests growth will recover faster than expected as a result of stronger consumption. The most immediate positive effect of the reopening will be on domestic demand. Hong Kong property and retail could benefit from the return of tourists from mainland China in the later stages of…

You might have considered downsizing and freeing up some of the equity to help fund your retirement. The home downsizer superannuation scheme allows you to do just that and enjoy a superannuation benefit. Better still, the scheme has been made more generous. From January 1, 2023, a person aged 55 or over (previously 60 or over) can now make non-concessional contributions of up to $300,000 (or $600,000 per couple) from the proceeds of one sale of a main residence. The measure applies to sales of a principal residence owned for the past 10 years or more, and both members of a couple are able to take advantage of this measure for the same home. It is only possible to do this once. So, those at the younger end of the…

BlackRock CEO Larry Fink has predicted that tokenisation will be the next evolution of markets – and he's not alone. State Street has released its annual investment outlook revealing a growing interest in tokenisation, supporting Fink's view. Fink maintains that exchange traded funds are the previous evolution of trading and the next one will be the tokenisation of securities. Tokenisation is a digital representation of a security on the blockchain. They are financial instruments and represent an ownership stake in an asset or enterprise. The global State Street survey of 480 institutional investors, including asset managers and private market managers, included 47 respondents from Australia with average assets under management of $53.4 billion. “Private market managers are quite bullish on tokenisation going mainstream in the next three-plus years, as they…

Q My dad is in his mid-70s and just sold his property. He has bought an off-the-plan apartment, but it won't be ready until mid-year. What's the best thing he can do with his money now? He will also have around $400,000 left after paying offthe other property. What will be the best strategy? Currently, he doesn't have any super. Should he start a super fund? I would be very uncomfortable if anyone looked at investing in growth assets such as property and shares with less than a minimum five-year view. Who knows what could happen in a few years – the market could be up or down by a significant amount. Time smooths out risk in investing markets. This is why super funds, for example, with a very long…

2020 Alkoomi ‘Grazing Collection’ Shiraz $21 This is a new budget-priced range with a brightly floral look from one of the Great Southern's longest-established wineries at Frankland. It has benefited from a couple of years in the bottle, is medium-bodied, with smooth, almost velvety texture; bright, deep, redcurrant and blackberry flavours. Wonderfully satisfying. SPLURGE 2021 Clonakilla Shiraz Viognier $110 This is a subtle, even restrained, cool climate shiraz from Murrumbateman in Canberra's chilly climes. There's intensity of blackberry and wild bramble flavours, persistence and depth. It's a red that receives a perceptible lift on the finish from the small addition of viognier to the blend. While deceptively drinkable now, will improve with time in the cellar. Still Australia's finest example of the style. PETER FORRESTAL…

PAUL'S VERDICT Paul Clitheroe I'm floundering … how can I get ahead? I'm a 48-year-old newly single mum (separated in 2020) with two teenage daughters. I earn less than $70,000 a year but I have no credit cards or loans, just a $7000 HECS debt. I have a car, furniture, household goods – we didn't own our own home so I'm renting. I have a little over $100,000 in super. I am managing to save regularly and have just over $10,000. My question is, where should I go for some sound, budget-friendly financial advice? I'm very nervous about getting involved with a financial adviser and being sold products I can't afford and don't need. I am interested in possibly investing in index funds. However, I am very keen to buy…

Women account for just over half the nation's population. Our combined income comes to around $21 billion annually, and on a global scale women control a third of the world's wealth – and are adding an extra $7 trillion to the pool of wealth every year. It gives women considerable financial and economic clout. But if you have money in a professionally managed fund – and that includes the nation's 150-plus superannuation funds – it's a near-certainty your investment is being managed by a male-led team, and this can have a significant impact on your investment returns. Finding a female investment manager in Australia can be like looking for a needle in a haystack. A 2022 survey by the Financial Services Council (FSC) found women, on average, make up 27%…

You won't be able to get your finances in order overnight, but there are a number of things you can set out to do by Christmas, giving you ample time to schedule the tasks into your hectic schedule. Here they are, in order of the approximate amount of time you need to complete them. NOW • Download the app for your super fund Most, if not all, funds offer their members an app to keep track of their contributions, membership benefits and fee changes. Contact your fund to get more details. You will need your membership number and an email address that you can regularly check. • Set up your own savings account Sounds like an obvious one but many women, especially if they are married or in a long-term…

Inviting into your life a person who you've only met online can mean not really seeing their true personality until you're heavily invested in the relationship. Two years ago, divorcee Roxanne*, 45, met Bill* through a dating app. The relationship moved swiftly, and he suggested they share a place together with a view to buying a home if all went well. Roxanne's retired parents made their investment property available for the couple rentfree while they saved a deposit. After moving in together, Bill discouraged Roxanne from seeing friends and she became increasingly isolated. The couple started looking at apartments listed for sale on the NSW Central Coast. Bill made offers on quite a few but always claimed he was knocked back. Finally, Roxanne contacted an agent herself to see if…

BANKING Tom Watson After every cash rate hike from the Reserve Bank, I imagine a western-style standoff playing out between the banks. Pistols at dawn, or rather, after 2:30pm. Who will draw first? Who will announce the unwelcome news to customers that, regrettably, the latest increase will be passed on in full, breaking the dam wall for every other bank to follow suit? Of course, these announcements have become all too familiar for property owners with a mortgage, many of whom will have seen their interest rate double in the past year and their repayments soar by hundreds of dollars each month. Not that anyone will want to be reminded of that fact. What is encouraging, though, is that rather than raising the white flag in the face of this…

Anthony O'Brien SMALL BUSINESS Small business owners work in a variety of industries, but a common thread is that many are time-poor. So, the idea of completing a TAFE course or uni studies to gain extra skills and knowledge is often out of the question. The good news is that a wealth of advice, tools and resources is available that can cost a business next to nothing. Here are some of the options that offer support to business owners in their journey to building a thriving enterprise. Business.gov.au Cost: free. The portal is a handy one-stop-shop for just about everything you need to know, no matter whether you're thinking of starting a business or are running an established enterprise. It has guides on topics ranging from how to set up…

CASE STUDY Jason, 35, earns $65,000 a year. His super balance is $45,000. He urgently needs medical treatment for a serious condition but has no emergency funds. His only option is to dip into his super to cover his medical expenses of $10,000. Jason applies to the ATO for early access to his super for that amount on compassionate grounds. His application is approved for $12,820 by the ATO, taking 22% tax payable into account. At age 65, Jason retires with a super balance of $741,305. Had he not made the withdrawal 30 years earlier, he would have $794,152 instead – or $52,847 more. Source: Industry Fund Services. Calculation includes inflation, salary indexed at 2.50%pa and super fund earning 5.50%pa. Vita Palestrant was editor of the Money section of The…

BEST IN BREED Scott Phillips For a sector that's usually considered pretty sleepy and “defensive” (we'll come back to that), consumer staples has been unusually volatile recently. During the Covid lockdowns, our eating and cooking habits changed, and then changed back. Inflation, dormant for decades, suddenly hit the sector in a big way. And the surge to, then away from, online commerce made things particularly hard to read. And this from companies usually considered boring and relatively stable. But first, who exactly are these companies? Last issue, we looked at discretionary retail – the things we can choose to buy, or not – usually things like fashion, technology and the like. By contrast, staples are the boring (there's that word, again) cousin: food, drinks, agriculture and the like. So, yes,…

CALENDAR OF EVENTS Wednesday, March 1 GDP growth rate Tuesday, March 7 Reserve Bank interest rate decision Balance of trade Tuesday, March 14 NAB business confidence Thursday, March 16 Unemployment rate THE BUZZ Affordable, trusted financial advice is coming … slowly Aussies are a step closer to being able to find affordable financial advice that they can trust – but don't celebrate just yet. Treasury's Quality of Advice Review, which was released last month, includes 13 primary recommendations by Allens lawyer Michelle Levy to cut the cost and amount of paperwork and make sure that the advice is “good”. Only 10% of Australians currently receive professional advice; many are deterred by the prospect of paying thousands of dollars in upfront fees. This is despite a report from the Financial Services…

BOOK OF THE MONTH GIRLS JUST WANNA HAVE FUNDS Affirm Press, RRP $29.99 If you've been living payday to payday since you joined the workforce, author and founder of Ladies Finance Club Molly Benjamin is here to help with her book Girls Just Wanna Have Funds. By the time you read through the 216 pages, you should have the knowledge to set up a budget, start investing with as little as $50, sort out your debt, get a foothold on the property ladder, have friendly money conversations with your partner and be able to teach your own kids to be money savvy. DEBRA DUNCAN Five readers can win a copy. In 25 words or less, tell us one thing you do to make your pay go further. Enter online at…

MORE MONEY STORIES ON P44-57 CAR OWNERSHIP How to offset rising expenses Car owners estimate they are forking out $15,754 each year on average to run and maintain their vehicle, a new survey conducted by car subscription service Carbar has revealed. The latest average is 76% greater than last year's figure of $8926, with respondents reporting substantial increases in the annual cost of petrol ($938 higher), loan repayments ($871 higher) and insurance ($830 higher). Motoring journalist Toby Hagon agrees that running a car has become more expensive in recent years, and it's a trend he can't see reversing any time soon. However, he says there are a number of ways that drivers can trim their costs. “The biggest factor on how much your car will cost to run is the…

An increase in demand for rental properties generated by overseas migration and returning foreign students helped drive the national vacancy rate down to a record low 0.8% in January, research by Domain has revealed. At the same time, most cities notched double-digit rental price increases in the 12 months to December, with Perth (15.2%) leading the growth for houses and Melbourne (20%) for units. The figures highlight the competition in the rental market, which comes as a welcome development for investors, says Ben Kingsley, chair of the Property Investors Council of Australia. $70 the median weekly rent increase across capital cities in the year to December 2022. Source: Domain “While capital growth has been terrific when you look at the last 10 or 15 years, rents haven't been keeping up…

MORE SHARES STORIES ON P76-89 FUNDAMENTALS Bright outlook for Aussie stocks Australian shares have outperformed their global counterparts over the past year, and AMP Capital believes this trend will continue. To get a handle on the future, it's useful to understand the past, and the big question is whether the structural underperformance of Aussie equities is over, says chief economist Shane Oliver. He says the underperformance of Australian shares since 2009 reflects a mix of payback for its huge outperformance in the 2000s, worries about the deteriorating relationship with China and low exposure to pandemic winners. “An often-expressed view is that Australian companies are not investing because shareholders want high dividends, and this could be causing poor profit growth and share returns … This is unlikely. “The dividend payout ratio…

First job was at Donut King, where she could bring home surplus doughnuts at the end of her shift. Says she was always entrepreneurial, setting up a shop in her cubby house to sell her toys to neighbours “for real money”. Developed a strong passion for social justice while living in Los Angeles, volunteering at an orphanage in Tijuana, Mexico. Describes her attitude as positive and hopeful. “Sometimes I wake up in the middle of the night really excited to go to work the next day.” Personal pursuits include surfing and long-distance running. Believes people can achieve a healthy work-life balance through focus and prioritisation.…

ASK PAUL  Q & A Q I have a general super enquiry, but one that very much needs your point of view, please. Both my husband and I are 53 and have the same super fund provider (Mason Stevens). We have around $200,000 and $400,000 respectively. We have been with them for five years and the portfolio is split between growth and balanced (given our age), yet it has returned only 2.78% and 1.79% respectively over the past five years – hardly brilliant. I am reluctant to change funds yet again (we've done so about five times over our working life), yet I'm also aware that the returns are poor. We will be working for at least another 15 years. Do we bite the bullet yet again and speak to our…

I probably use this rather old saying a little too often, Kate, but with money in particular it really is “never too late to get started”. We'll get onto the critical steps in the short to medium term in a moment, but I would not give up on home ownership in the years to come. I believe it will be possible for you, mainly because you have already shown me some really good money habits. Money success for most of us who don't have a fairy godmother, win the lottery or receive a shock inheritance from a forgotten relative is not about dreams. It is the super-simple first step, which you have done, of spending less than you earn. I don't really care what people earn. Obviously, more makes it…

A 2018 study by the University of Sydney took a deep dive into women working in investment management. It revealed an industry many refer to as a boys club. The research found some of the reasons women choose to work and stay in investment management roles include the sense of purpose the job provides, and the woman's ability to “make a difference” by generating the best returns possible for investors. However, more than a fifth of survey participants claimed to have experienced offensive remarks or behaviours relating to their gender at work. Many described being excluded from male-only social events, such as poker nights. Reports of conscious and unconscious bias that favoured male colleagues in promotion processes were common. About one in eight women who participated in the study reported…

It's worth a call-out to Australia's 604,000 self-managed super funds, many of which are “mum and dad” funds: the value of gender diversity can apply here, too. SMSFs may be small in terms of members per fund, but they punch above their weight for accumulated assets, controlling $865 billion of Australia's retirement savings. All members of an SMSF are responsible for the fund's decisions and for complying with the law. This alone should give women an incentive to take an active role in the management of their SMSF. But it's also important for women to have a voice around investment decisions. SMSFs where trustees are male-dominated have been shown to invest in riskier assets – something that may not suit every member or deliver the best financial outcomes over time.…

The fact that girls earn 15% less pocket money than boys says a lot. We may think that gender stereotypes are changing, but it isn't happening as fast as we may believe. Boys earn an average of $12.59 a week compared to $10.98 for girls, according to a survey of more than 2000 parents with at least one child aged eight to 17 conducted last year by the market researcher YouGov. Girls’ self-perception and confidence around money are moulded by a number of influences. Parents are a trusted source of financial education. But the difference in pocket money indicates that some parents are treating girls differently from boys. Whether it comes from mothers or fathers, it is time to watch the language and treatment of girls. For example, never say…

FAMILY MONEY Susan Hely If you are thinking of having a baby, it can make a big difference if at least one partner, but preferably both, is employed by a company that offers generous paid leave. When I last wrote about paid parental leave several years ago, the best employer scheme I could find offered 18 weeks. This time I found several companies offering 26 weeks for either partner and many more offering 18 weeks. When I had my kids, very few workplaces offered paid parental leave. My partner and I had to fund my time out of the workforce, and this meant there was a lot of pressure to return to work quickly to pay the mortgage. These days around 60% of employers pay parental leave, according to insights…

MANAGED FUNDS Max Riaz There are some accelerating changes underway in the western political economies, including the US and Australia. As long-term investors, we need to keep one eye on the economic horizon and one on the immediate chaos of the markets. Our goal is to be informed of the changes underway and then optimise our portfolios accordingly to ensure we successfully navigate the future with as little volatility as possible for the highest possible returns. It should come as no surprise that the prevailing political philosophy behind a country's economic policies ultimately create the conditions for the operation of investment markets. Political philosophy combined with economic policies can also be described as political order. The choice of a political order determines how a nation wishes to manage its economy.…

THIS MONTH Marcus Padley I did a personality test once. There are as many shades of personality as there are people, of course, so to make any sense of something so complex, the analysis had to generalise, which meant pigeonholing us all into categories. This particular stockbroker personality test broke us all down into four basic types based on four basic patterns of behaviour. They labelled them excellence, A fight breaks out in a pub. The analysis people would be assessing why it started and what the outcome was likely to be. The excellence people would be rating the fighters on their fighting abilities – “Good shot, Sir!” type of thing. The harmony people would make every effort to break it up while the action people would pile straight in,…

Research manager The best financial decision I made recently was to move my home loan to a fixed term on a very low interest rate for four years. It gave me such peace of mind when the cash rate went up every month starting from May until December last year. Not only I am able to save some money on my home loan but I also have time to get organised for bigger repayments once the term is over. Head of client success A few years ago I reassessed my budget to put together a savings plan, which has made a difference. Reviewing my spending habits on a weekly and monthly basis, looking for better deals on my mobile plan or health insurance, and being more conscious of how and…

Generative artificial intelligence will be transformative. Rather than fight it by calling for it to be banned, we should learn how to work with it. Anyway, with Microsoft embedding it in the Bing search engine and Edge web browser, and Google launching equally huge initiatives, we don't have a choice. That's why in our business at Rainmaker Information we are already experimenting with ChatGPT – how we can use it to simplify our writing, explain better, improve our computer skills. AI's capability to do this is why I expect super funds and financial advice groups looking for online tools to help them support their fund members and clients will be all over tools like ChatGPT and everything that comes next in AI. But while generative AI is going to be…

FRIENDS WITH MONEY #85: HOW TO INVEST WITH $100 OR LESS Host: Michelle Baltazar Guest: Brooke Roberts This month's podcast guest, Brooke Roberts, says that all you need is an app and a few dollars (less than $50, in fact) to get started on your investment journey. Roberts knows a thing or two about investing, as the director and co-founder of Sharesies, a digital investment platform that was established to make investing easy and accessible. In this podcast, you'll learn about top tips to start investing, how you can overcome analysis paralysis, what investment strategy you should choose, and more. DEBRA DUNCAN SCAN THIS CODE TO ACCESS ALL OUR FRIENDS WITH MONEY PODCASTS…

With the latest Consumer Price Index revealing that the price of food and non-alcoholic beverages jumped 9.2% in the year to December, shoppers are being encouraged to be more scrupulous with their selections. “With cost of living prices continuing to rise, everyone is on the lookout for ways to save money on their grocery bill,” says Margaret Rafferty, editorial director at consumer advocate Choice. “Unit pricing – that small text underneath the main price – is a great way to compare brands and sizes to make sure you're reducing the money you spend.” A recent study conducted by Choice found that while 44% of shoppers were already using unit pricing as a method to save money, 71% had encountered obstacles such as small label text and obstructions to price displays.…

MORE INVESTING STORIES ON P68-75 VENTURE CAPITAL Startups raise a record $8.3bn The Australian startup market defies global trends, as venture capital investments topped $8.3 billion for the first time in 2022. According to the research by KPMG, VC funding globally has fallen to its lowest levels since 2019, with the market shrinking by $341 billion to $710 billion in 2022. However, Australian startups have continued to attract record amounts, with investments in the sector up 2%, according to KPMG's head of high growth ventures, Amanda Price. “Overall investment in Australian startups has leapt 194% since 2019 and delivered year-on-year growth every year since 2014.” Over 2022, this was driven by some mammoth deals, with the largest startup raise of 2022 belonging to buy now, pay later outfit Scalapay with…

The US investor and fund manager Peter Lynch said you should invest in what you know, and I know Breville. From kettles to coffee grinders and much in between, I have eight of its products dotted around my home. The trouble is that whenever I research the company I seem to end up buying another gizmo instead of shares. Last year it was a Smart Kettle; this time it's a Fast Slow Go multifunction cooker. The products perform very well – the result of much research and development over the years and a relentless customer focus. They also look great, with that consistent, sleek, defining stainless steel design. The company is also getting better at showing this off to the customer. With the app, for example, you can see how…

ASK PAUL Q & A NEED PAUL'S HELP? Send your questions to: Ask Paul, Money magazine, Level 7, 55 Clarence Street, Sydney NSW 2000 or money@moneymag.com.au. Sorry, but Paul can't personally answer your questions other than in the Q&A column. By submitting your question to Money, you consent to having your question and the response you receive from Paul published in the print and digital edition of Money. Q How can I generate income from a $100,000 inheritance? I am 62 and work a five-day fortnight in the health sector. My husband, Rick, 60, has a life-limiting medical condition and is on a disability pension plus NDIS support for essential care. We are expecting an inheritance following the sad passing of his mother last year. I would like to retire…

Q I am in settlement on an existing villa as a first home buyer in Western Australia, using all the grants and tax incentives available. I intend for it to be my primary residence, but it is tenanted for a fixed term for four more months. Am I able to use the time it is being rented out to complete maintenance (for example, repairing ceiling cracks, replacing damaged security screens) and use that to negative gear or neutral gear the property until the current tenancy ends? Or will doing that void my first home buyer stamp duty exemption and so on, and am I better off waiting until I can actually move in? This is not my preferred strategy, Caitlin, but I am bailing out of this one. Specialised investment…

What is it? This is a best-practice women's shelter in south-east Sydney that assists and provides support for women and families in crisis. In collaboration with Women's Community Shelters, the group has established a six-bedroom shelter to accommodate women who are escaping family and domestic violence. Where your money goes: The shelter is run by a team of unpaid volunteers, some of whom have been victims of domestic violence. The group does more than just provide accommodation; it also feeds, clothes and provides counselling for women in need. Even a donation, from as little as $25, can provide groceries to support a woman in the shelter for three days. A $100 donation can provide immediate crisis assistance to a woman in her first 24 hours at the shelter, while $500…

Anne Graham has been a financial adviser for more 20 years. She believes being a woman in a maledominated industry has been an advantage. “There were so few of us [female advisers] when I started. It was a point of difference, and many women felt comfortable seeking me out. They would often say they felt embarrassed about their financial situation and were comfortable speaking with me rather than a male colleague.” Even today, Graham says couples often enjoy working with female advisers. She believes this is because “the women feel heard and listened to, even if their male partners are leading the conversations. “Often female advisers provide a different perspective to advice than males. I think women are good at showing understanding and empathy and in my experience the focus…

Financial wellness is important to all of us. But just one in 10 one First Nations people reports being financially secure compared to one in two non-Indigenous Australians. That's not surprising. Indigenous Australians have faced – and still face – significant hurdles in achieving financial security. Land dispossession and stolen wages are just some of the challenges confronting Indigenous people. (As recently as the mid-1960s many Indigenous workers were paid in rations and those who were paid a wage often received a third of non-Indigenous pay.) It has left a legacy that sees many First Nations people with little control over their money, no ability to build wealth and few opportunities to grow intergenerational wealth. We also have unique cultural attitudes to wealth. A 2019 survey by the University of…

MIND GAMES Phil Slade Most people know that when we experience the death of a loved one, we grieve. It's our brain's way of processing the significant change and loss. What most people don't realise is that we grieve any change, including financial loss or a sudden career change, not just the loss of a loved one or thing. Research shows that these experiences have a significantly greater impact on women's emotional and financial wellbeing, particularly for those facing gender-based financial challenges and discrimination in the workplace. A 2021 US study found that women are more likely to experience financial insecurity than men. This was supported by an American Psychological Association study that found women were more likely to experience stress, anxiety and depression as a result of financial strain.…

REAL ESTATE PAM WALKLEY Buying a home remains a dream for many Australians. Even though prices are falling, they remain high in most areas. The average median of the combined capital cities was $770,000 at the end of 2022, according to CoreLogic, and the Sydney median was just over $1 million. Rising interest rates – the cash rate has risen from 0.10% in April 2022 to 3.10% at the end of 2022, with more rises predicted – are another big hurdle for buyers. All this means they may need to broaden their horizons to find an affordable family home. This applies to first home buyers and homeowners who want to move. One reason for moving could be that the mortgage on your current home is just too high, given the…

SUPER Vita Palestrant If you're unlucky enough to suffer a serious injury, illness or financial hardship and have no funds to fall back on, you may be able to withdraw some of your super to pay your bills. Super's governing rules allow for early access to your savings in very limited circumstances. This recognises that lives can be upended unexpectedly, leaving people in dire circumstances with no alternative but to dip into their retirement savings as a last resort. Eligibility will depend on whether you qualify for access to your super on compassionate grounds or due to severe financial hardship. Both “conditions of release” have different sets of rules and processes. Compassionate grounds include needing money to pay for: Medical treatment and medical transportforyouoryour dependant. Making a payment on a…

Objective is to achieve long-term capital growth exceeding the return of the market by investing in global equities, combining stable growth companies with thematic picks. eInvest Better Future Fund (ASX: IMPQ) Aims to provide attractive levels of capital growth in investments that also contribute positively and sustainably to society and the environment. Invests mostly in Australian and New Zealand listed small and mid cap stocks, to achieve a return greater than the S&P/ASX Small Ordinaries Accumulation Index. Global X Semiconductor ETF (ASX: SEMI) Seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices requiring semiconductors. This includes the development and manufacturing of semiconductors themselves.…

• Check long-term performance. Focus on picking ETFs with a track record over multiple years, not the short term. • Monitor the liquidity. Look at the daily volume traded and how liquid the underlying holdings are. Larger and more liquid markets generally have a lower bid/ask spread, meaning lower transactional costs. • Analyse the investments. What are the underlying holdings, exposure and allocation? Most ETFs track an underlying index, so check the index methodology to understand how the holdings, exposure and allocation are chosen. • Factor in fees. What are the costs of the ETF? How do these compare? Typically, expensive ETFs often relate to active fund managers or complex underlying strategies that include leverage, synthetic instruments and inverse products. These come with higher risks. • Be sceptical of the…

This year will be a lousy one for Alumina. Key inputs such as gas and caustic soda have been on a tear while the alumina price has, for a while now, been well below historic averages. To top off the trifecta of bad news, joint venture partner Alcoa has confirmed that lower grades of mined bauxite will impact costs and volumes in key Australian refineries. To sum up: costs have risen, prices are poor and volumes will fall. Yet Alumina remains on our buy list. It's worth explaining why. Alumina – a white powder refined from bauxite rock – is the forgotten mineral of the commodity world. Its price doesn't get reported on the nightly news, it isn't discussed in offices (well, except ours) and retail investors don't typically guess…

The tables on these pages contain data and information to help you compare managed funds, which are pooled funds managed professionally by investment experts. Managed funds displayed in these tables are multi-sector or asset class specific. Multi-sector managed funds invest across a diversified mix of asset types spanning equities, property, bonds, cash, infrastructure, private equity and alternatives. Managed funds are normally set up as unit trusts. You may be able to invest in them directly or through a platform. These products may be recommended to you by a financial adviser. The performance results displayed are the annualised investment returns each managed fund has delivered after taking into account taxes paid by the unit trust and investment fees. Research was prepared by Rainmaker Information and for more information see www.rainmaker.com.au WHAT…

Alex Dunnin OUTLOOK Demography is destiny. It drives our economy, productive capacity, property prices, demand for goods, sharemarket prices, the job market and salaries. The feedback loop adding to the money cocktail is that overseas demography, and what those societies want, will drive demand for Australia's major exports, which are commodities. After three years of Covid-19, economic watchers and investors – which covers, implicitly and explicitly, pretty much all of us – want to know what the real long-run effects of the pandemic will be. But first, yes, Australia paid a hugely savage and disruptive price when Covid tore through our health systems and other social infrastructure, such as the education sector. We also need to acknowledge that this is what happens in pandemics and we need to plan for…

THE HOT SEAT What inspired you to become a pastry chef? I've always been around food. We're Greek. My family emigrated to Australia. And food is the love language. I was never good at school. I was great at showing off. And I was always great with cooking, only because I've been around food. As a pastry chef, you have the emotional ending for someone's meal. I love making people feel special and get excited about food. So, we always go above and beyond for whatever we create. What was your earliest money lesson? Learning to save at a young age is vital – it sets you up for the future. Having a piggy bank is always important, so you can put money away and allow it to grow. I…