Indholdsfortegnelse for September 2024 i Money Magazine

Australia has some incredible achievements. One of them is superannuation, which puts the onus of funding our retirements onto the companies that employ us. It may surprise you to know the push for enforced retirement savings began with blue-collar unions in the 1930s, and was based on the notion that everyone has a right to a decent, dignified and supported life when they can’t work anymore. Those unions negotiated up to 3% with their respective industries and baked that into employment awards. Prime Minister Paul Keating then introduced universal super (known as the super guarantee or SG) in 1992, which also began as 3%-4% of a person’s wage. Now, 32 years later, the SG sits at 11.5%; a big whack of compulsory savings by any interpretation. With around 670,000 of…

AMAN RAMRAKHA OUTLOOK More than a billion people have been lifted out of poverty because of globalisation since 1990, according to the World Bank. The income of the poorest 40% of the world’s population has increased by 50%. Trade has also shaped the global economy and has helped promote positive socioeconomic outcomes. Globalisation highlights one of the basic theories of economics: comparative advantage, which suggests that countries focus on industries where they have the highest skill and the lowest opportunity cost. All the same, concerns about globalisation have bubbled away. An International Monetary Fund (IMF) paper published in 2023 charts three phases of the deglobalisation movement in recent times. The first occurred around 2015 and gave rise to Brexit, with a trade war between the US and China in 2018-19…

MARK CHAPMAN TAX TIP If you’re going through a divorce, tax is probably not front of mind. But if, as part of the settlement, assets (such as property or shares) are transferred between spouses, you really should consider the tax aspects. In most cases, a CGT rollover will apply and have the effect of disregarding any capital gain or loss arising on the transfer of the asset. The receiving spouse is effectively treated as if they had always owned the asset and will be liable to CGT on the full capital gain when they ultimately dispose of it. A similar exemption applies to stamp duty. The giving spouse has no further tax implications and is deemed, in effect, to have never owned the asset. This rollover is automatic. You cannot…

After years in the works, ANZ’s acquisition of Suncorp Bank has reached its final chapter. At least, for now. At the beginning of August the acquisition officially ent through, meaning that roughly 1.2 million Suncorp customers and 3000 staff were absorbed into the ANZ Group. ANZ also inherits Suncorp’s mortgage book, which, according to the latest data from the Australian Prudential egulation Authority, is worth oughly $53 billion. That catapults ANZ ahead of NAB as the nation’s third largest lender behind Commonwealth Bank and Westpac. “This strategically important acquisition boosts our presence in Queensland, adds scale to our retail and commercial businesses, and means we can compete more effectively across the Australian market,” says Shayne Elliott, ANZ chief executive. Initially, Suncorp customers are unlikely to notice any major changes. ANZ…

When Woodside announced one of the largest mergers in recent memory, folding BHP’s petroleum business into its own, we were enthusiastic. Not long afterwards, Woodside committed to spending $16 billion to develop the giant Scarborough gas project. We remained positive, although there were questions about the project’s ultimate return. Recently, Woodside announced a new deal: the $US1 billion ($1.5 billion) purchase of the nascent US-based LNG project known as Driftwood. This time, we’re waving the red flag. In the past, Woodside has managed the entire process of its projects and generated returns at every stage. Driftwood is different. There is no gas field. The project aims to tap the onshore US gas market to supply its hungry processing trains. In our view, that is risky and assumes plentiful onshore gas…

We don’t envy the UK for its weather, public health system or, ahem, cuisine, but the country is about to pull ahead of us on one important issue. From October, it will become the first jurisdiction in the world to force banks to compensate scam victims. The new law is designed so that both the sending and receiving banks that are party to a customer who is scammed through ‘push payment’ fraud – that is, they are tricked into sending payment to an account outside their control – are each responsible for repaying half of that customer’s loss. The bigger goal is that if banks are made liable for scam victims’ losses, they will be incentivised to invest more heavily in detection and prevention. Australians lost $2.7 billion to scammers…

HOME SWEET HOME Playing it safe with savings Hi Paul, in our letter we asked about whether to continue with our offset account, invest the cash in shares or use our equity for an investment, given the low-interest-rate environment. We decided to go down the extra-conservative route, even though interest rates dropped even lower. You described your home as your ‘castle’ and mentioned your preference for not having debt against it. Funnily enough, I had named our home loan account ‘The Castle’. This confirmed for us the value of having a secure place to live, so we continued to add money to the offset account, as you never know what is around the corner. Of course, Covid arrived and with it employment insecurity. Then, one of our adult kids had…

Dupes can be a fantastic money saver, though they can also be cheap, poorly made products. If you’re buying from an Australian-based business, chances are the item will meet Australia’s high product standards and you shouldn’t have too many issues getting a refund (although it’s important to read the retailer’s refund policy). That said, in the world of dupes there is cheap – as well as cheap-and-nasty. If a price seems too good to be true, it probably is. You could be forking out for something that will end up in the garbage bin sooner rather than later. In a worst-case scenario, you could buy a product with the potential to harm you or your family. The term ‘buyer beware’ still carries plenty of punch.…

The legal terms explained: Will: A legal document with instructions about who you want to inherit your estate, care for your children, and be the executor of your estate when you pass away. Testator: A person who has made a will. Estate: Assets belonging to the person who has died. This can include real estate, bank accounts, shareholdings, motor vehicles and other property, such as furniture and jewellery and sometimes your superannuation. Beneficiary: Any person or organisation (for example, a charity) that receives a gift or benefit from a will. Executor: A person appointed by the will maker (or testator) to ensure that the intentions in their will are carried out. Probate: The legal approval that is granted to an executor of a will by the Supreme Court probate office.…

PHIL SLADE MIND GAMES My grandfather was the local preacher, a wheat and sheep farmer, a father and a great granddad. He held no ‘work hours’; he just did what needed to be done for the farm, the church and at home, and tried to enjoy every moment of the journey. The concept of work-life balance would always raise a confused look. He didn’t consider there to be such a split. He just had life balance. Family, friends and resource generation were completely intertwined. Good balance was when all these things were going well and bad balance was when they weren’t. One of these things going adrift simply indicated that he needed to focus on getting it back on track. It has been this way for most of human existence.…

Karen Stiles says she would strongly urge owners to join their strata committee: not only to ensure that the building is well run, but to safeguard what, for many people, will be their greatest financial asset in their home. Joining a strata committee may come with its ups and downs though. PROS You can influence decisions: Having a seat at the table allows you to weigh in on how the strata scheme is managed. For instance, which repairs and upgrades need to be prioritised or the size of the budget, which directly impacts levies (though this will be put to all owners). You’ll be kept up to speed: In addition to being able to influence decisions, by virtue of being on the committee you may be informed of anything major…

Many locations had big price growth from 2020 to 2022, then flatlined or declined for 18 months and are now showing signs of resurgence. These are called second-wind markets. Until two or three years ago, Hobart and regional Tasmania were at the forefront of national price rises. Then those markets peaked and prices weakened, but they are now showing early signs of revival. Other second-wind markets include: • Queensland The Sunshine Coast, Bundaberg, Hervey Bay, Mackay, Gladstone, Gympie. • NSW Byron Bay, Orange, Wagga Wagga, Dubbo. • Victoria Melbourne generally, Ballarat, Bendigo, Shepparton. • Tasmania Hobart, Launceston, Burnie, Devonport. Darwin and Canberra are also showing signs of movement after a quiet period. Of these, Melbourne is the major market overdue for a period of significant growth. The hangover from being…

SHARES LESSONS LEARNT When Andrew Kelly was selling car radios in Sydney’s bustling Paddy’s Markets, he couldn’t have expected to one day feature on the BRW Rich List, nor imagine the collapse of the business that put him there. Kelly rode the mobile phone revolution, first to success and then to disaster, and we followed his every step down. What happened The first Intelligent Investor office was in the architectural wasteland of Bondi Junction in Sydney’s east. The forlorn environment was well represented by a giant red sarcophagus of a building occupied by Strathfield Car Radio. Had the remains of Chairman Mao been secretly buried in Sydney’s eastern suburbs, this is where one might have found them. Strathfield’s arrival was prescient. Telstra had released the first 1G phone on its…

Association of Superannuation Funds of Australia (ASFA) 1800 812 798 (outside Sydney) 9264 9300 (Sydney) superannuation.asn.au Australian Communications and Media Authority 1300 850 115 acma.gov.au Australian Competition and Consumer Commission 1300 302 502 accc.gov.au Australian Energy Regulator aer.gov.au/consumers/making-a-complaint Australian Financial Complaints Authority 1800 931 678 afca.org.au Australian Securities and Investments Commission (ASIC) 1300 300 630 asic.gov.au Australian Securities Exchange (ASX) 131 279 asx.com.au CPA Australia 1300 737 373 (within Australia) +61 3 9606 9677 (outside Australia) cpaaustralia.com.au Do Not Call Register To reduce telemarketing calls 1300 792 958 donotcall.gov.au/contact-us/contact-details Fair Trading/ Consumer Affairs ACT: 132 281 NSW: 133 220 NT: 1800 019 319 QLD: 137 468 SA: 131 882 TAS: 1300 654 499 VIC: 1300 558 181 WA: 1300 304 054 Financial Counselling Australia National Debt Helpline: 1800 007 007…

CALENDAR OF EVENTS Wednesday, September 4 GDP growth rate Thursday, September 5 Balance of trade Thursday, September 12 Westpac consumer confidence NAB business confidence Thursday, September 19 Unemployment rate Tuesday, September 24 RBA interest rate decision How helping the kids can end in tears for the Bank of Mum and Dad Everyone and their dog knows that buying a home in Australia is no easy feat. The reality is that as property prices have outpaced wages in recent decades, it’s become harder for those trying to get their foot in the door to put together a deposit. So, where do would-be buyers turn for help? In many cases, they turn to parents or family members – a group that’s now collectively referred to as BOMAD (the Bank of Mum and…

BOOK OF THE MONTH IOOF TO INSIGNIA FINANCIAL by Engel Schmidl (Allen & Unwin, RRP $45) Founded as the Independent Order of Odd Fellows, the IOOF friendly society provided Australians with the social and financial services that governments did not offer. Funeral funds, medical insurance and sickness and injury allowances from IOOF ensured working families were able to withstand life’s misfortunes. This is the story of how the IOOF, now called Insignia, grew into a financial powerhouse. Drawing on interviews with past and present company leaders and employees, the book traces the growth and maturing of the financial services industry in post-war Australia. We have two copies to give away. In 25 words or less, tell us why you would like to win this book. Enter online at moneymag.com.au/win or…

In what has been described as a major ruling against greenwashing in the financial services industry, Mercer Super has been ordered to pay a substantial penalty by the Federal Court for making misleading statements in relation to some of its superannuation options. The case, which was launched by the Australian Securities and Investments Commission (ASIC), involved statements on Mercer’s website that marketed seven investment options as being suitable for members committed to sustainability because they excluded certain companies involved in fossil fuel, alcohol and gambling industries. ASIC contended that these claims didn’t stack up, because the investment options did include companies involved in these sectors. Ultimately, the court agreed that Mercer had misled customers and ordered it to pay a $11.3 million penalty. “This was ASIC’s first greenwashing case brought…

QUAFF 2022 Earthworks Tempranillo $20 Another pleasing example of the Spanish variety, tempranillo, from the Barossa Valley. Distribution is handled by Yalumba, with the wines remaining sourced from this winery’s original family vineyards. It is soft, fine and succulent. There are gentle redcurrant, red cherry flavours and a fine texture that lingers. SPLURGE 2021 Holm Oak ‘Hot Shot’ Pinot Noir $130 The big news from the Tamar Valley’s Holm Oak is that the winery pig and ‘general manager’, Pinot, has been joined by two piglets, Mayonnaise and Pinot Junior. Other news from winemaker Bec Duffy and viticulturist husband Tim is that their flagship pinot (only produced in the best years) has been made in tiny volumes from the 2021 vintage. It is aromatic, potent and deep on the palate with…

PAUL CLITHEROE PAUL'S VERDICT YOUR QUESTION Hi Paul, I am a single parent of two teen boys and have had to learn financial literacy since my divorce. I earn $123,000pa and have a property valued at $880,000 ($192,000 owing) and a newly built duplex investment valued at close to $900,000 ($690,000 owing) and renting at $750 a week. My home and investment property are 8km from the Adelaide CBD in a desirable suburb, and capital growth has been significant since I acquired it. I am paying principal and interest on both, so it doesn’t leave a lot left over to save or to take out equity, as I am making additional payments out of my salary to service the loan on the rental. I have only $16,000 in offset savings and…

SUPER ANNUITIES AGE PENSION INCOME STREAM LIFESTYLE WELLBEING People approaching retirement, or in retirement, are wrestling with FORO: a fear of running out of money. Longevity risk – the risk of outliving one’s savings – is a key concern, prompting many retirees to draw down only the compulsory minimum income from their super each year. Previous generations had five to 10 years of retirement before they passed away, whereas these days retirement might last 25 to 30 years. At the same time, navigating the retirement system, in all its regulatory complexity, is beyond many retirees. But so is the cost of financial advice. The issue has placed longevity risk firmly in the spotlight with the government, super funds and life companies preparing for the challenges ahead. There are currently more…

Financial adviser Marisa Broome, principal of Wealthadvice, says people don’t engage with super early enough. “If you’re engaged [in super] from the start and put in as little as $50 a month extra – the cost of two cups of coffee a week – the impact of doing that throughout your working life will give you a very good retirement.” You also need to check that your super fund is a strong performer and that you are in the right investment option. Broome says the two biggest factors in retirement are owning your home and having as much as possible in super. Remember, super is complex and has many rules, so check with your fund before you act. Where big transactions are involved, you might want to get professional financial…

ANNETTE SAMPSON WHAT IF? HIS CHANCES ARE GOOD At the time of writing, the US presidential election had taken a new turn with the announcement that Joe Biden would not stand for a second term, passing the baton to vice-president Kamala Harris. There is no doubt having a younger, female Democratic nominee has changed the dynamics of the race. Harris has started strongly, with early polls showing she has narrowed the gap with Trump and is leading in some results. She is expected to particularly appeal to women. However, the election is not until November and Trump had been gaining momentum all year. He is still a strong possibility to be the next US president. WHAT WOULD THAT MEAN? With the US so deeply divided, the election looks like being…

SUSAN HELY FAMILY MONEY Sometimes inheritances don’t go the way people expect. When my dad died, everything went to his new wife and son. I understand why he did this. But he had been married to my mother for 43 years before they divorced and he repartnered, and for many years I assumed the family home and some shares would transfer to me and my sister. It taught me that you never know how an inheritance will pan out. Often when there are blended families, the new family inherits most or all of the assets. If you receive an inheritance, it is a windfall – like winning the lottery. If there is a property left to the family, even if it is split among adult children, a slice of the…

ANTHONY O’BRIEN SMALL BUSINESS Australians love loyalty programs. Nine in 10 of us are enrolled in at least one scheme, and a survey by the consumer advocate Choice found that the big schemes such as Everyday Rewards (Woolworths) and Flybuys (Coles) mean that shoppers are less likely to shop around for better prices and will spend more at the one place. While small businesses may not be able to compete with schemes on the scale of, say, Flybuys, even a modest loyalty scheme has the potential to deliver valuable results. McKinsey Australia found high-performing loyalty programs can offset flagging consumer confidence in an uncertain economic environment, with the potential to generate higher sales and provide greater bang for the customer acquisition buck. At the simplest level, a loyalty program can…

Given the size and complexity of many strata communities, it’s not surprising that many choose to employ a professional strata manager to help with everything from building maintenance to financials. So what should committees think about when hiring a manager? Karen Stiles from the Owners Corporation Network of Australia has a few suggestions. First of all, Stiles says strata committees need to be crystal clear about the help they need. Do they want a managing agent that’s going to operate at a high level and do most of the work, or does the committee want to be more involved with the day-to-day operations themselves? To make the life of the strata manager bearable, Stiles also suggests that one person from the strata committee is elected to be the point of…

PAM WALKLEY REAL ESTATE If strata title living is ever going to gain wide appeal for families, developers need to stop designing just for investors. “We need more three-bedroom apartments with corridors and storage for kids,” says Karen Stiles, executive director of the Owners Corporation Network. Better design to include light, cross ventilation and energy should be high on the agenda. Sophie-May Kerr, a researcher at the UNSW City Futures Research Centre, agrees we have a long way to go to make apartment living appealing to families. “Apartment living, a feature of the compact city, is a solution to urban sprawl and housing affordability concerns. However, apartment designs too often exclude families, making it difficult for parents with children to see their apartments as longterm homes,” she said in an…

Some investors may also have been attracted to investment bonds, yet strictly speaking these aren’t bonds. They are a tax-effective savings and investment structure. Investment bonds can hold equities, bonds, cash and property among other assets, and the issuer pays the tax at the company tax rate of 30%. If the investor waits 10 years until they make their first withdrawal, they won’t have to pay any additional tax on the bond’s earnings. Felipe Araujo, executive director and general manager at investment bond issuer Generation Life, says the effective long-term average tax rate of an investment bond can be as low as 12% to 15%, depending on the investment option. “They’re similar to superannuation in that tax is already paid, but without the complexity and restrictions that superannuation has. There…

ZACH RIAZ MANAGED FUNDS The interest-rate-cutting cycle may finally be here. At its July monetary policy meeting, the US Federal Reserve left the Fed fund rates unchanged but indicated the first interest rate cut in the US could come at the next meeting on September 17-18. The Fed chair, Jerome Powell, said the board was satisfied with the “progress toward the committee’s 2% inflation objective”. Should the data continue to trend in the desired direction, it raises the prospects of a rate cut. While the markets have reacted cheerfully – equities up, bond yields down (and bond values up) – it is important to note that the market is, in fact, expecting almost three rate cuts of 0.25% each before the end of 2024. Furthermore, should equity investors really be…

SCOTT PHILLIPS BEST IN BREED SECTOR ULTILITIES The more things change, the more they stay the same. It’s not a new sentiment, of course. Nor is the idea that the only constant is change. I think both, though apparently contradictory, are true. And I’ll throw a third line at you, to try to solve the dilemma – one of my favourite quotes, given to us by Thomas Jefferson: “In matters of style, swim with the current; in matters of principle, stand like a rock.” Now, let’s bring that to business in general and investing in particular; then I’ll explain why it’s relevant to this month’s task of finding a ‘best in breed’ in the utilities sector. It’s my belief that there’s almost nothing new in investing since Ben Graham (and later,…

MATT CAMPBELL Contributor My dad is a painter – not the artist kind, the walls-andwindows kind. I wasn’t allowed to follow in his footsteps; he insisted I use my brain, not a brush. I was a terrible painter, anyway! He regretted worrying about money when I was a kid, lamenting lost opportunities because of a fear of failure. He told me to back myself, take risks and know my worth – essentially, he gave me the push I didn’t know I needed. Read Matt’s story about the EV boom on page 44. NICOLA FIELD Contributor My father was a great lover of fine wines. He was more than happy for Mum to stack the grocery trolley with ‘no-frills’ dupes, but there was no way he was going to give up…

Current legislation must be repealed to outlaw virtualonly annual general meetings (AGMs) for companies listed on the ASX. The gold standard is a fully hybrid AGM, providing the 7.7 million Australians who are retail shareholders with access to company boards and management at least once a year. The Federal government is considering legislative changes to the method of conducting company AGMs. At Wilson Asset Management, we advocate for reform that promotes a fully hybrid format and bans virtual-only AGMs. We encourage all other listed companies to adopt the hybrid format, which is the fair and equitable approach. Initially enabled by temporary amendments to the Corporations Act in 2020 during the Covid pandemic, fully hybrid AGMs have since been embraced by our investment team, our 130,000 retail shareholders and eight listed…

More and more Australians are calling apartments home as our housing mix changes, but buying an apartment is not without its issues. For some people, minor defects are an unfortunate reality after buying a new apartment, but as well-publicised cases, such as Opal Tower and Mascot Towers in Sydney, have shown us in recent years, some defects are more severe than others. One solution, in NSW at least, that is designed to provide greater confidence in developers and the quality of buildings is the Independent Construction Industry Rating Tool (iCIRT). Administered by Equifax, the iCIRT operates using a five-star system in which developers and other property businesses are rated independently on their capability, conduct and a range of other criteria. Prospective buyers can then check to see if a particular…

PAUL CLITHEROE 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. For Astrid, the idea of having to rent in retirement is ‘terrifying’. Owning your own home is a big advantage Q I’ve witnessed a family friend live off the age pension and still have to pay rent. I don’t want to have that as my future – it terrifies me. I’m 46, single, earn $70,000pa and have $5000 in savings. I don’t own a…

WEAR IT What is it? Samsung Galaxy Ring Smartphones may be getting larger by the year, but wearable technology is shrinking. The Galaxy Ring is Samsung’s first ‘smart’ ring offering and the latest to shake up the wearables market, which has traditionally been dominated by smartwatches. Capturing everything from daily steps and calories to blood oxygen level and sleep, the ring is designed to provide users with a snapshot of their health and other AI-generated insights via the Samsung Health app. While it’s not available in Australia just yet, it’s certainly worth knowing about. Cost: From $US399.99 (about $600) samsung.com/us/rings/galaxy-ring. DRINK IT What is it? Wacaco Nanopresso Portable Espresso Maker Weighing 300g and standing just 15cm tall, the Nanopresso Portable Espresso Maker from Wacaco is designed for travellers and outdoor…

PAUL CLITHEROE PAUL'S VERDICT PAUL’S VERDICT Sheree, you are certainly demonstrating plenty of very effective financial literacy. Good on you. I, along with many others, have spent much of the past four decades trying to help build people’s financial literacy skills. One thing we do notice is that we humans tend not to put in the effort into getting better with money unless we absolutely have to. A big part of the problem is that financial literacy will not make any of us rich in the short term. We all know that ‘If it looks too good to be true, it will be’. Anyone promising us short-term wealth with little risk is a liar or a crook. I’ll give lottery-type games an exemption here. Except as a hobby, with losses kept…

Australia’s age pension is one of the more generous – and more complex – pension systems in the world. The age pension can be hard to understand, says Jeremy Duffield, co-founder and director of SuperEd, a retirement digital advice company. “The age pension provides core funding for about seven out of 10 Australian retirees. More than 50% of retirees get more than 50% of their retirement income from the age pension. And about 80% of us will be eligible by the time we’re 80 years old. “Even if you aren’t eligible today, it’s highly likely that you will become eligible for at least some pension payment at some point during your retirement. Keep that in mind as you consider your retirement spending plans.” The age pension can be worth more…

Part one 1 What constitutes a legal will in Australia? For a will to be legal, it must be in writing, be signed by the testator (the person making the will) and be witnessed by two people who are not beneficiaries under the will. A legal will is a document that should appoint an executor, give directions in relation to the testator’s assets and liabilities, nominate the beneficiaries and provide for substitute beneficiaries in the event that the original beneficiaries pre-decease. It can give directions for the disposal, cremation or burial of the body and can contemplate the possibility of re-marriage after the will has been made. Essentially, the will is the document that would make provision for the people the testator is concerned about and ensure that their assets…

There are no inheritance or estate taxes in Australia. But you may have tax obligations, such as capital gains tax on assets that you inherit and sell. • Check with the tax office to calculate capital gains tax, as there are different rates depending on the dates of ownership, such as before or after September 20, 1985. • Keep any paperwork that relates to the assets. In the case of shares, you will need to know the market value at the time they were acquired. • Income tax applies to any dividends or rental income from shares or property you inherit. • If you inherit a death benefit from a superannuation fund, there could be a 17% tax depending on whether you are a dependant of the deceased as well…

1 Consider engaging a buyers agent who has knowledge of the areas you are considering. The Owners Corporation Network says a buyers agent will take the time to understand your requirements and can help you avoid buying a lemon and paying too much. The downside is you will have to pay a fee, but it could be money well spent. 2 Check out any building you are considering buying in to see how well it is maintained. Chat to some of the occupants if possible. Rubbish lying around, broken gutters and dirty paintwork are red flags. 3 Engage a strata expert who will inspect a scheme’s records to provide a report that will help you understand if the strata scheme you are buying into is well run, well maintained, adequately…

VITA PALESTRANT SUPER Everyone should know that investing early for longer in a tax-advantaged, low-fee environment is hard to beat. Yet it’s not uncommon to hear friends or family expressing regret for not doing more to boost their super as they exit the workforce along with their salary. “Early in your working life, time is on your side when it comes to your super. By planning ahead and making informed choices, you can take advantage of super’s long timeframe, says Marianne Walker, Cbus Super’s deputy chief executive and chief member officer. “When you’re in your 20s and 30s, retirement can seem like it’s far away in the future. However, getting on top of it early can have a big impact on your lifestyle later in life,” she says. Making extra…

Janus Henderson Tactical Income Fund This fund aims to deliver absolute returns in an environment of both rising and declining bond yields by making tactical asset allocation calls between cash, duration and higher-yielding investments. The strategy also has ESG considerations and risks embedded in the investment process without it being labelled a ‘sustainable’ strategy. Man AHL Alpha Fund The fund employs a systematic, statistically based investment strategy to exploit technical or price-driven signals across a diverse range of global markets. The main strategy used is trend following – that is, price trends (up or down) or repeatable patterns in the 500 or so international markets that the fund can access. The portfolio invests in instruments such as securities, futures, options, forward contracts, swaps, CFDs and other derivatives. The strategy has…

MARCUS PADLEY THIS MONTH I once gave a talk at the Australian Shareholders’ Association (ASA) conference and met a lovely couple who told me they had been offered the opportunity to invest in a ‘wholesale’ fund where the returns were much better than in a retail fund but they had to put in $500,000. They were nervous but excited at investing with the ‘smart money’. I asked them if they knew what a sophisticated investor was and they replied ‘no’. OK, stop right there! Many of you will know this, but clearly some of you don’t. It works like this. You can read this on the Australian Securities and Investments Commission (ASIC) website: “Generally, people buying securities and other financial products must, under the Corporations Act 2001, be given a…

In my experience, most investors underestimate the odds of a poor outcome. So, please consider yourself warned. And if you’re going to invest in this area, please make sure your company is of sufficiently high quality to minimise that risk. With the energy transition under way, I think an investor needs to be brave to think there might not be some serious dislocations ahead. For that reason alone, I’d be avoiding energy generation or retailing. Given that, and the likely need for ongoing gas supply, this month’s Best in Breed is pipeline owner APA, which also operates wind and solar farms.…