Articles

Separating Fantasy from Reality in the Brave New World of Payments Innovation

Stories about P2P payments related to mobile payments are often a mixture of large companies pushing out announcements about services for which they have no serious launch plans, to start-ups that have ideas in development but nothing in production, to new firms that have introduced a new product and really think they are going to be the Google of payments. And of course spread among this are the gold nuggets—serious product and technology ventures that could have a real impact on the future of the business. [...]

The No Brainer Hedge Fund

The first page of search engine research tells you that: "Investors use hedging strategies when they are unsure of what the market will do"--- isn't that always the case? Further along you learn that there are many different kinds of strategies, nearly all of which rely upon some sort of derivative betting mechanism. But what is hedging all about in the first place? [...]

SMSF Administration and avoiding the percentage trap

Self Managed Super Funds must have annual accounts and audits done, and as such administration services are a non-negotiable. For those who run businesses, you would be accustomed to your accountant and book-keeper providing these services. How would you like it if your book-keeper quoted her fees not as a set amount per hour, or a fixed amount per month, but rather as a percentage of your turnover? [...]

You can invest your super in property

Most people these days are aware of Self Managed Superannuation Funds, commonly abbreviated to SMSF’s. One area of investment which is helping drive the take up of SMSF’s is property investment. We all know that Australian’s love their property investment. Whilst SMSF’s have always been able to purchase investment property, in the past they were restricted by the fact that SMSF were unable to borrow. This has now changed. [...]

Investor Friendly Tax Reform and Job Creation

Over the past 30 years Federal Tax receipts (Corporate, Personal, Estate, Excise, Gift, Social Security, Medicare, Medicaid, et al) have averaged less than 20% of Gross Domestic Product (GDP). Read that again, and don't think for a minute that it's not a large number. But it's not nearly large enough to pay the bills, reduce the national debt, grow the economy, and come to the aid of all of the people in the world who need us. Why, because nearly half of us (some legally, some not so) pay little or no federal income taxes at all--- and because our elected representatives have no financial management skills.

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Solid Income Investments in Liquid Form - Managed Closed End Funds

Unlike conventional mutual funds, CEFs do not issue and redeem shares directly with investors at net asset value. CEFs are listed on national securities exchanges, where shares of the Investment Company are purchased and sold in transactions with other investors, just like individual company stocks, and most often not at net asset value. [...]

The Investors Creed

Fascinating, isn't it, this stock market of ours, with its unpredictability, promise, and unscripted daily drama. But individual investors are even more interesting. We've become the product of a media driven culture that must have reasons, predictability, blame, scapegoats, and even that four-letter word, certainty. [...]

Urgent Changes Required to the Finance System

Shortly after the beginning of time, the finance system played an important role in economic development. It is through the collection of deposits, providing business and personal loans, and trade finance that local and international commerce developed. How far away are we today from the finance system servicing consumers, commerce, manufacturing and international trade? How did it happen that it became a means to itself? [...]

2010 Federal Budget Summary - a superannuation and investment perspective

From a superannuation and investment perspective there were no big surprises in the Budget. The faster than expected return of the Budget to surplus, three years ahead of schedule in 2012-13, is good news for all investors. However, the return to surplus is predicated on a continuation of the resources boom and economic growth in China. [...]

Stock Market Corrections Are Beautiful

A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, even technically I'm told, corrections adjust equity prices to their actual value or "support levels". In reality, it's much easier than that. Here's a list of ten things to think about doing, or to avoid doing, during corrections of any magnitude. [...]

Australian Government Response To Henry Tax Review

A Bear in Bull's Clothing... The Australian Government has released its response to the Henry review into taxation. Largely funded by a new Resource Super Profits Tax, the reforms include some key changes to superannuation and company taxation. This article provides a summary of these and other relevant announcements and how they may affect you. [...]

Larry Siegel's Nine Myths of Investing (Siegels Myths)

Larry Siegel, Research Director of the CFA Institute’s Research Foundation, Senior Advisor to Chicago-based Ounavarra Capital and AllAboutAlpha.com contributor is always a crowd favorite at a conference since he doesn’t mince his words. In one of his recent talks he urged the audience to pay attention to “Nine Myths of Investing” (Siegel’s Myths). [...]

RBA raises cash rate for the sixth time since October 2009

The Reserve Bank of Australia (RBA) Tuesday as expected raised its cash rate target for the sixth time since October 2009, returning the setting of monetary policy to average levels for the first time since the global economy plunged into recession in 2008. [...]

Self Managed Super Funds - FAQs

This article answers some Frequently Asked Questions (FAQs) about the operation of Self Managed Super Funds (SMSFs) and provides links to further reference material. [...]

Property in your SMSF - FAQs

Property in your SMSF. This article has answers to a number of Frequently Asked Questions (FAQs) about borrowing with your Self Managed Super Fund to invest in residential housing. [...]

Managed Asset Allocation - Working Capital Model - Part One

Asset Allocation is an investment planning tool, not an investment strategy --- few investment professionals understand the distinction. Fewer still have discovered the power of The Working Capital Model. The problem that most investors have is that they use the wrong number to determine their Asset Allocation in the first place. Neither market value nor the calendar year should be relevant issues. [...]

Dividend Derivations

Often overlooked, dividends are viewed as a small bonus at best or at worst, an inefficient diversion of corporate profits. But dividends not only account for a significant proportion of total return over the long term, they also provide consistency of return (and as such lower risk), as well as compounding opportunities and tax benefits. What's more, and this is relevant for all investors, they offer deep insight into the health and prospects of a business. [...]

Islamic finance as an alternative investment

Islamic finance is an industry which has steadily gained attention since its establishment in the late 1970s. It is distinct from conventional finance in its outward adherence to Islamic law (shahria’h). One such distinction, as provided here, is that it prevents the use of interest, given the notion in Islamic texts that making money from money constitutes usury. Islamic finance is based on the belief that wealth should be created only through legitimate trade and investment in assets. Since the 2008 financial crisis, it has understandably gained in popularity given that it generally forbids both debt trading and excessive risk taking. [...]

The Rise of the SUPER Woman

Women could soon be retiring with more money than men. Today’s women are leading the men in the art of making their money work for them (whilst the men seem to be still "working for the money"). [...]

RBA Raises Cash Rate Target

The Reserve Bank of Australia raised its cash rate target a quarter of a percentage point to 4.00% as the economy accelerates and labor market conditions tighten rapidly. [...]

Income Investing And What You Really Know About It

If this were a "college entrance exam" for future retirees, retirement planners, or investment managers--- well, barely passing just doesn't cut it. [...]

A different way of defining value added in fund management

We are accustomed to judging the value-added of investment funds in somewhat of a vacuum. All that seems to really matter is the risk adjusted performance of a fund vs. its benchmark. Instead of looking to traditional measures such as alphas and information ratios, the up-capture and down-capture ratios of mutual funds may indicate value-add of active management.

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Crisis has reinforced ongoing trend toward alternative investing

The hedge fund industry’s insatiable thirst for market research will be temporarily quenched by an interesting new report from SEI and Greenwich Associates. The document, called “The Era of the Investor” contains results from the firms’ second annual survey of institutional investors.
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New study of mutual fund alpha

For years, researchers have been telling us that one of the biggest determinants of mutual fund alpha (or lack thereof) is a fund’s expense ratio. What little raw alpha is generated, the argument goes, is eaten up by management fees. [...]

Global Outlook for the Decade Ahead

With the start of the next decade underway we provide an updated economic outlook and the implications for long term investors. [...]

Articles

Separating Fantasy from Reality in the Brave New World of Payments Innovation

The No Brainer Hedge Fund

SMSF Administration and avoiding the percentage trap

You can invest your super in property

Investor Friendly Tax Reform and Job Creation

Solid Income Investments in Liquid Form - Managed Closed End Funds

The Investors Creed

Urgent Changes Required to the Finance System

2010 Federal Budget Summary - a superannuation and investment perspective

Stock Market Corrections Are Beautiful

Australian Government Response To Henry Tax Review

Larry Siegel's Nine Myths of Investing (Siegels Myths)

RBA raises cash rate for the sixth time since October 2009

Self Managed Super Funds - FAQs

Property in your SMSF - FAQs

Managed Asset Allocation - Working Capital Model - Part One

Dividend Derivations

Islamic finance as an alternative investment

The Rise of the SUPER Woman

RBA Raises Cash Rate Target

Income Investing And What You Really Know About It

A different way of defining value added in fund management

Crisis has reinforced ongoing trend toward alternative investing

New study of mutual fund alpha

Global Outlook for the Decade Ahead

Larry Siegel's Nine Myths of Investing (Siegels Myths)