Will Stocks Make Good Investments?
|
|
- James George
- 3 years ago
- Views:
Transcription
1 THE STOCK MARKET ROLLERCOASTER Stick it out or get out? Do the recent huge swings on share markets mean it s time to sell up and try your luck in property or gold, or will equities settle back into their old habit of producing healthy returns? YMM looks at the reasons for and against holding on to your shares through these tough times 82 yourmoneymag.com.au
2 The report commissioned each year by the ASX and put together by Russell Investments concludes that in the 10, 20 and 25 years to December 2010 (the most recent report available), Australian shares have delivered better returns from 9% to 11.2%, depending on your personal tax rate than more conservative asset classes such as cash and fixed income. The Russell analysis provides strong evidence that markets move in cycles and will continue to do so. Russell concludes that a long-term investment strategy is preferable and that attempts to time when you enter and leave the market are fraught with danger and that investors should look at longer-term historical returns to put the events of the GFC into context. Although there have been shorter-term periods in history when cash has outperformed shares, yourmoneymag.com.au over the long run history has shown that share markets have delivered superior returns, it says. Opportunity exists Some experts point that the market jumping up and down all the time creates great investment opportunities if you know what to look for. Paul Zwi, director of private clients for Clime Investment Management, says equities markets are currently throwing up quite a few opportunities, but he does qualify that statement. We re still going through the work-out phase of the great leveraged debt binge of the pre-2008 decade, he says. What we saw in the US with their sub-prime mortgage debacle, and the sovereign debt imbroglio in the Eurozone at present, is all part of that work-out, and of course it s not over yet. Economic growth, particularly in the INVESTMENT RETURNS FOR THE 25 YEARS TO DECEMBER Rates (%p.a.) 12% 10% 8% 6% 4% 2% 0% Australian Shares Source: Russell Investments Residential investment property REITs Fixed interest Gross Return After-tax lowest marginal tax rate After-tax top marginal tax rate Super CPI Cash Overseas shares (unhedged) 3.6% Inflation MARKET OUTLOOK WHAT WILL THE ASX RETURN PER ANNUM OVER THE NEXT DECADE? YMM asked expert analysts and asset managers the following question: If equities have historically returned an average of 10% over 20 years or more, can we still expect this level of returns to continue or has there been a fundamental shift in how equities markets work? This is what they said. Benny Sada, The Australian Stock Report: % Based on our modelling, we believe the ASX200 will roughly double in the next 10 years to around the 8,000-8,500 point range. This assumes the global uncertainty subsides and the focus shifts back to Australia s integral role in Asia s economic expansion. This will equate to an annual market return of approximately 6.75%. If we further assume a dividend yield of 4%, this suggests shareholders can expect to receive an average total return of between 10.5% and 11% a year over the next decade. 12% Dennis Ng, Lincoln Indicators: We expect the ASX will continue its long term upward trend over the next 5 10 years, led by long-term earnings growth particularly from 10% commodity related industries. Paul Zwi, director private clients, myclime.com.au: Too early to say. Ask me in 20 years time! Although we can t know this, personally I expect the long-term 8% average returns from equities will get back to the fairly high levels we enjoyed in the past. I d certainly be very happy with an average of 10% growth per annum plus dividend 6% income from my portfolio. John McBain, CEO Centuria Capital: The fact is that the period of relative stability and continuing growth that preceded the GFC is unlikely to return any time soon and 4% in our view retirement savers who make investment decisions based on that expectation will not be making the best decisions. Shane Oliver, head of investment 2% strategy and chief economist at AMP: 10% Over the next five to 10 years we expect the ASX to return around 10%. This is comprised of 4.7% return from dividend income and about 0% 5.3% return from capital growth. This Australian is in line with growth in the underlying Shares Australian economy. 3.6%p.a. inflation Residential investment property 83 REITs
3 developed world where the excessive debt is concentrated, will be held back for some years yet, says Zwi. Debt will have to be re-paid or written off or inflated away. Taxes will have to be increased. Banks and other financial institutions will have to be recapitalised. All those processes take longer than people expect, and will be a drag on growth for years, he says. That sounds pretty pessimistic but Zwi also points out the bright side. Remember, you don t need to invest in broad economies. You can carefully select individual companies that are doing very well, he says. We expect the Australian market to struggle for a while, so a set-and-forget strategy will probably not work too well. We have a strategy to use the market volatility to pick up excellent companies at cheap prices, and then trade out of them when they rise beyond their intrinsic value. Volatility creates opportunities for us to trade around the company s value as we have analysed it. Also, in Australia we are especially fortunate. We weren t too caught up in the debt binge, and so do not have excessive borrowings at either the government level or the corporate level. We enjoy strong export markets for our goods, and record high terms of trade. We have relatively low unemployment, and a growing population. We have a strong currency, and more or less neutral interest rate settings. We have a strong banking sector and a good regulator. So there are lots of pluses. Indeed, if you have a short-term investment timeframe and feel more comfortable being described as a trader than a long-term investor, you won t have a problem with volatility. It s your opportunity to exploit large and swift market movements. You may also be trading in currencies and using derivatives like ETFs to hedge against certain movements (whether up or down) in the share market generally or a particular sector. If volatility is the new normal you ll be more than happy. Will things settle down? We expect the market to remain quite volatile for the next year or two, says Zwi. It s hard to be precise with these things. Within the medium term (three to five years), we would anticipate a stronger market. Other commentators are not so optimistic. John McBain, CEO of diversified fund manager Centuria Capital, says he expects financial markets to remain highly volatile, at least in the medium term and very possibly beyond it. Investors must rethink the conventions of asset allocation, says McBain. Conventional time in the market wisdom, which holds that taking a long-term position will smooth ANNUAL VOLATILITY BEFORE AND AFTER % 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Australian Equities International Equities Listed Property Fixed Interest Cash United and Direct Property Source: Rice Warner Sept 2007 to Aug 2011 Nov 2003 to Oct yourmoneymag.com.au
4 investing equities QUALITY STOCKS GOING CHEAP Buying opportunities abound. According to myclime.com.au, these stocks currently represent excellent value. Their recent share price graphs when compared with the myclime evaluation of their intrinsic worth indicate that they re currently underpriced. GUD Holdings (GUD) RIO Tinto (RIO) Recent share price: $7.87 Equity per share: $3.73 Recent share price: $67.83 Equity per share: $38.23 Borrowings per share: $13.54 Net return on equity: 41.4% Borrowings per share: $1.71 Net return on equity: 36.6% (GUD) GUD HOLDINGS LIMITED (RIO) RIO TINTO LIMITED BHP Billiton (BHP) Recent share price: $36.88 Equity per share: $10.66 Borrowings per share: $2.99 Net return on equity: 58.6% Brickworks Ltd (BKW) Recent share price: $11.30 Equity per share: $11.36 Borrowings per share: $2.02 Net return on equity: 6.6% (BKW) BRICKWORKS LIMITED (BHP) BHP BILLITON LIMITED Untu Untu que l Australia New Zealand Banking Group (ANZ) Recent share price: $20.70 Equity per share: $14.09 Borrowings per share: $0 Net return on equity: 21.7% (ANZ) AUSTRALIA NEW ZEALAND BANKING GROUP yourmoneymag.com.au 82-87_OutOfEquities_V2.indd /18/ :56:56 PM
5 WHAT SHOULD YOU DO? What game plan should you adopt if you re a long-term investor feeling spooked by all that global economic uncertainty we hear about on the news every night, and the fact that the price of your shares and the value of your super seems to be bouncing around all over the place? Here are the YMM experts tips: 1Check how much of your overall wealth you ve got in each type of asset and what your strategy is (for both your super and non-super investments). If you have too high percentage of your money invested in relatively high-risk growth assets like shares or property and not much in low-risk, stable assets like cash or fixed interest, you may need to swap some money around to reduce your overall risk. 2Retain reasonably high cash levels. That doesn t mean putting all your money in term deposits. Interest rates are on the way down so you could end up with returns not much better than inflation, and that s just as risky as market volatility over the long term. 3Keep some money in shares. It s time to assess your holdings and decide what s worth keeping and which stocks you should part company with. 4Stay away from stocks with excessive debt. Focus on quality if you want to stay in the share market 5Look for stocks with sustainable high yields, that have a proven track record of maintaining high yields (dividends) over time (see the investing for dividends story on page 66 of this issue). 6Look for shares that have high earnings historically and have strong forecasts for future earnings that are sustainable 7Focus on domestic Australian shares. We have less headwinds to contend with than some international markets at the moment. 8Look for stocks that provide a sustainable return on equity (ROE). Look at each stock s historical ROE and forecasts. 9Read annual reports and seek out stocks with low debt levels and solid balance sheets. If you don t know how to read a balance sheet, consider doing an ASX course or joining the Australian Shareholders Association. may have to make a decision between chasing the highest possible returns or opting 10You for lower but less volatile returns. This doesn t mean abandoning shares and other growth assets altogether. John McBain suggest considering returning to an old-fashioned asset allocation of 33% shares, 33% property and 33% cash. manage your portfolio, including your asset allocation and your shares. The days of set 11Actively and forget may well be over. Conventional time in the market wisdom, which holds that taking a long-term position will smooth short-term losses and lead to net investor gains over time, should be viewed with fresh scepticism in the face of market volatility short-term losses and lead to net investor gains over time, should be viewed with fresh scepticism by many investors in the face of the new reality of market volatility. Past performance is an increasingly unreliable guide to future returns, he says. The volatility across asset classes exhibited in the years preceding the GFC bore no relation whatever to the extremes in the four years that followed. Volatility levels across all major asset classes in the four years since September 2007 have increased and in some asset classes that increase has been as much as four- or even five-fold compared to the four years prior. In the new reality for many riskaverse and even mainstream investors, guarding against loss should become equally as important as making gains. Instead of continuing to regard the current environment as the tail end of the GFC anomaly, we need to make plans based on the expectation that the conditions of the past six or so months (or longer) are our new reality, he concludes. Good option: value investing Clime Investment Management are value investors and Paul Zwi says this is an approach that could work for all longterm investors in the current climate. Value investors look for companies that have intrinsic value. They re profitable, have little debt and great prospects for future earnings. If you re looking for value stocks the first step is to look at the profitability 86 yourmoneymag.com.au
6 investing equities of the company. Profitability takes into consideration the amount of capital required to generate that profit. This is known as return on equity (ROE). Every business has an intrinsic value derived from its return on equity (profitability) and its inherent business or investment risk. This value may show no resemblance to the current market price because the market is not always efficient or rational. It is a business s fundamentals and its performance (historical and forecast) that creates the value, says Zwi. The second step is to look at the share price relative to its profitability. If a business has solid fundamentals and a low share price, it represents a good buy. At the moment there are companies trading at substantial discounts to their intrinsic value and that represents buying opportunities. The next thing you need to assess is your return in relation to the risk yourmoneymag.com.au 82-87_OutOfEquities_V2.indd 87 involved. Shares are high-risk assets so to compensate for that risk you should expect a higher return. In fact, the return should be substantially higher than you would expect from a low-risk asset like a government-guaranteed bank deposit. Zwi s guidance is to find companies that have sustainably high return on equity, low or no debt, and experienced management, and operate a competitive business model. With all these things in place, your risk will be minimised. If a business has solid fundamentals and a low share price, it represents a good buy. At present there are companies trading at substantial discounts 87 11/18/ :57:02 PM
INVESTING YOUR SUPER. This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015
This document forms part of the NGS Super Member Guide (Product Disclosure Statement) dated 14 August 2015 INVESTING YOUR SUPER FACT SHEET 5 14 AUGUST 2015 NGS Super offers you flexibility and choice when
More informationSHARES GENERATE INCOME.
SHARES GENERATE INCOME. BELL POTTER COMMITTED TO PEOPLE, BUSINESSES AND COMMUNITIES. Bell Potter Securities Limited was founded by Colin Bell in Australia in 1970. We have grown to be one of Australia
More informationWhy understanding asset allocation could improve your SMSF returns. By Peter Switzer & Paul Rickard BROUGHT TO YOU BY AMP CAPITAL
Why understanding asset allocation could improve your SMSF returns By Peter Switzer & Paul Rickard WELCOME To put together a comprehensive investment strategy, and maximise the returns of your self-managed
More informationAON MASTER TRUST. Introduction to investments. aonmastertrust.com.au
AON MASTER TRUST Introduction to investments aonmastertrust.com.au CONTENTS Risk versus return... 3 Asset classes... 4 Defensive and growth asset classes... 5 Asset class performance... 6 Managing risk...
More informationMLC MasterKey Unit Trust Product Disclosure Statement (PDS)
MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take
More informationA research study issued by the ASX and Russell Investments. Investing Report FULL REPORT / JUNE 2012
A research study issued by the ASX and Russell Investments Long-Term Investing Report FULL REPORT / JUNE 2012 Helping everybody invest intelligently by offering a deeper insight into investment markets
More informationInvestment Options and Risk
Investment Options and Risk Issued 1 July 2013 The information in this document forms part of the Product Disclosure Statement for the Military Superannuation and Benefits Scheme (MilitarySuper), third
More informationCONTRACTS FOR DIFFERENCE
CONTRACTS FOR DIFFERENCE Contracts for Difference (CFD s) were originally developed in the early 1990s in London by UBS WARBURG. Based on equity swaps, they had the benefit of being traded on margin. They
More informationTHE WORLD OF INVESTING
PENSIONS INVESTMENTS LIFE INSURANCE THE WORLD OF INVESTING A QUICK GUIDE INTRODUCTION If you are thinking about investing, then this booklet is designed to help lead you through the investment landscape.
More informationA guide to the world of investing
A guide to the world of investing Investments Introduction If you are thinking about investing, then this booklet is designed to help lead you through the investment landscape. It s a quick,simple guide
More informationInvesting Report. Comparing 10, 20 and 25 year performance of various investments to December 2010 FULL REPORT / JUNE 2011
Long-Term Investing Report Comparing 10, 20 and 25 year performance of various investments to December 2010 FULL REPORT / JUNE 2011 A research study issued by the ASX and Russell Investments About Us As
More informationGuide to Building Your Wealth. 1. What affects the value of money?
Guide to Building Your Wealth 1. What affects the value of money? Money has a tendency to lose its value over time because the price of goods and services usually goes up. This is called inflation. Here
More informationManaged funds. Plain Talk Library
Plain Talk Library Contents Introduction to managed funds 5 What is a managed fund and how does it work? 6 Types of managed funds 12 What are the benefits of managed funds? 15 Choosing a managed fund
More informationINVESTMENT CHOICE GUIDE. For super and retirement income members. Investing for your future
INVESTMENT CHOICE GUIDE For super and retirement income members Investing for your future Effective 30 May 2016 2 Everything we do at AustralianSuper is designed to help everyday Australians achieve their
More informationInvestment options and risk
Investment options and risk Issued 1 July 2015 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation accumulation plan (PSSap), eighth edition,
More informationINVESTING IN NZ BONDS
INVESTING IN NZ BONDS August 2008 Summary Historically active NZ bond managers have achieved returns about 0.6% p.a., before tax and fees, above that of the NZ government stock index. While on the surface
More informationInvestment options and risk
Investment options and risk Issued 1 November 2013 The information in this document forms part of the Product Disclosure Statement for the Commonwealth Superannuation Scheme (CSS), sixth edition, issued
More informationSharemarket investment strategies
Course 9 Sharemarket investment strategies Topic 1: Understanding the economy... 3 A top-down approach to investment analysis... 4 The Australian economy... 4 Keeping up-to-date... 5 Summary... 5 Topic
More informationInvestment Options and Risk Issued 1 March 2013
Options and Risk Issued 1 March 2013 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation accumulation plan (PSSap), fifth edition, issued
More information1 JULY 2015. Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS
1 JULY 2015 Investment Guide INDUSTRY, CORPORATE AND PERSONAL DIVISIONS Your investment choice TWUSUPER was established in 1984 as the Industry SuperFund for people in transport and logistics. By understanding
More informationQBE INSURANCE GROUP Annual General Meeting 2009. All amounts in Australian dollars unless otherwise stated.
Annual General Meeting 2009 All amounts in Australian dollars unless otherwise stated. John Cloney Chairman 2 Results of proxy voting A total of 4,874 valid proxy forms were received. The respective votes
More informationFirstChoice Employer Super
FirstChoice Employer Super Investment Options Menu Issue No 2014/1, dated 19 May 2014 Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 MySuper Authorisation Identifier
More informationASB Securities. ASB Margin Lending
ASB Securities ASB Margin Lending 2 Contents 01 ASB Margin Lending Widen your investment portfolio How does it work? 02 Why use Margin Lending? 03 The ASB Securities Margin Lending Service 04 The risk/reward
More informationBy Steven Peeris, Research Analyst
1/12/2013 Personal Finance By Steven Peeris, Research Analyst NUS Students Investment Society NATIONAL UNIVERSITY OF SINGAPORE TIME IS MONEY TRADING TIME FOR DOLLARS What are we getting paid for when we
More informationTips for Investing in Onshore Bonds
Investing in onshore bonds Open up your options with our Tailored Investment Bond Before you decide to buy, you need to know what the risks and commitments are. Read our key features document (TNB17).
More informationGuide to Investment Risk
Guide to Investment Risk What is risk? Risk is another word for uncertainty. While all investments carry an element of risk, the amount of risk you take directly affects any potential returns and losses.
More informationWAYS TO WEALTH - IN YOUR 20's TIME TO GET SMART WITH YOUR MONEY
WAYS TO WEALTH - IN YOUR 20's TIME TO GET SMART WITH YOUR MONEY Whether you're studying, working or travelling, living at home or with friends, saving to buy your own place or you have a mortgage, now
More informationEnhancements to ING s diversified investment funds
Enhancements to ING s diversified investment funds Effective 1 November 2005 Our investment managers, ING Investment Management Limited (INGIM), recently conducted a review of ING s diversified investment
More informationADDITIONAL (ASX DESCRIPTION CODE: ZGOL) AND THE DATE
HEADLINE GOES ANZ HERE ETFS PHYSICAL ONE LINE GOLD OR TWO ETF ADDITIONAL (ASX DESCRIPTION CODE: ZGOL) AND THE DATE THE EXCHANGE TRADED FUND THAT S AS GOOD AS GOLD 1 WHAT IS ANZ ETFS PHYSICAL GOLD ETF?
More informationPrinciples for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control
Principles for investment success We believe you will give yourself the best chance of investment success if you focus on what you can control Important information This guide has been produced for educational
More informationMLC Investment Trust Product Guide
MLC Investment Trust Product Guide Preparation date 1 July 2014 Issued by The Trustee, MLC Investments Limited ABN 30 002 641 661 AFSL 230705 The purpose of this guide is to give you the information you
More informationSlide 2. What is Investing?
Slide 1 Investments Investment choices can be overwhelming if you don t do your homework. There s the potential for significant gain, but also the potential for significant loss. In this module, you ll
More informationInvestment insight. Fixed income the what, when, where, why and how TABLE 1: DIFFERENT TYPES OF FIXED INCOME SECURITIES. What is fixed income?
Fixed income investments make up a large proportion of the investment universe and can form a significant part of a diversified portfolio but investors are often much less familiar with how fixed income
More informationUnderstanding Fixed Income
Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding
More informationThe risks and benefits of shares
Course 3 The risks and benefits of shares Topic 1: The risks of shares... 3 The risks of shares... 3 The risk of capital loss... 3 Volatility risk... 4 The risk of poor quality advice... 4 Time for your
More informationHow we invest your money. AADr Ann McNeill, the University of Adelaide. also known as Investing for the future
How we invest your money also known as Investing for the future The information in this document forms part of the following UniSuper Product Disclosure Statements (as supplemented from time to time):
More informationINVESTMENT. Understanding your investment in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you!
1 Understanding your investment in super doesn t have to be hard. You don t need to be a financial whiz to make it work for you! You just need to understand your options and how you can make the most of
More informationOur managed funds products are issued by
Our managed funds products are issued by 1 According to the Investment and Financial Services Association 1, Australia s first managed funds were introduced in 1954. Since then the industry has grown substantially
More informationWhether you re new to trading or an experienced investor, listed stock
Chapter 1 Options Trading and Investing In This Chapter Developing an appreciation for options Using option analysis with any market approach Focusing on limiting risk Capitalizing on advanced techniques
More informationANZ E*TRADE Share Investment Loan
ANZ E*TRADE Share Investment Loan Benefits at a glance Combine your money with a bank loan to increase your portfolio. Interest incurred on your loan may be tax-deductible. An optional diversified feature
More informationAbout Hedge Funds. What is a Hedge Fund?
About Hedge Funds What is a Hedge Fund? A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost
More informationBuild an investment portfolio that meets your needs
Investments EBS Choice Investments Build an investment portfolio that meets your needs MOney advice Designed Around EBS Choice Investments is provided by Irish Life Assurance plc. Important note: EBS Choice
More informationDetermining your investment mix.
Determining your investment mix. Ten minutes from now, you could know your investment mix: And if your goal is to choose investment options that you can be comfortable with, this is an important step.
More informationPurer return and reduced volatility: Hedging currency risk in international-equity portfolios
Purer return and reduced volatility: Hedging currency risk in international-equity portfolios Currency-hedged exchange-traded funds (ETFs) offer investors a compelling way to access international-equity
More informationANZ Margin Lending Integrated with E TRADE
ANZ Margin Lending Integrated with E TRADE The ANZ Margin Loan - Integrated with E TRADE What is margin lending? Benefits of gearing The ANZ Margin Loan is an integrated facility that allows you to trade
More informationThis guide contains important information about your NSF Super investment options.
Investment guide Personal Division This guide contains important information about your NSF Super investment options. You should read it to help you make an informed investment choice. Contents 1. Investment
More informationA guide to CFDs. Contracts for difference. For more information please contact us on 0117 988 9915 or visit our website www.hlmarkets.co.
A guide to CFDs Contracts for difference For more information please contact us on 0117 988 9915 or visit our website www.hlmarkets.co.uk One College Square South, Anchor Road, Bristol, BS1 5HL www.hl.co.uk
More informationTHIS DOCUMENT IS FOR USE WITH A FINANCIAL ADVISER ONLY OLD MUTUAL GENERATION FUNDS INVESTING FOR RETIREMENT INCOME
THIS DOCUMENT IS FOR USE WITH A FINANCIAL ADVISER ONLY OLD MUTUAL GENERATION FUNDS INVESTING FOR RETIREMENT INCOME INSIDE 1 2 4 6 9 10 11 12 13 13 Retirement calls Key considerations What are the Generation
More informationChapter 1 The Financial Assessment
Chapter 1 The Financial Assessment 64 P leasant S treet P hon e: ( 415) 830-52 44 Copyright 2007-2009 Harrison Lazarus Advisors, Inc. All Rights Reserved Page 1 of 15 It doesn t matter where you are in
More informationInvestment options and risk
Investment options and risk Issued 1 November 2013 The information in this document forms part of the Product Disclosure Statement for the Public Sector Superannuation Scheme (PSS), seventh edition, issued
More informationDetermining your investment mix
Determining your investment mix Ten minutes from now, you could know your investment mix. And if your goal is to choose investment options that you can be comfortable with, this is an important step. The
More information7 ESSENTIAL TIPS FOR MANAGING CURRENCY RISK
7 ESSENTIAL TIPS FOR MANAGING CURRENCY RISK At a Glance Investing offshore gives you access to a larger and more varied investment universe, with opportunities for growth and income that are simply unavailable
More informationModule 5. Attitude to risk. In this module we take a look at risk management and its importance. TradeSense Australia, June 2011, Edition 10
Attitude to risk Module 5 Attitude to risk In this module we take a look at risk management and its importance. TradeSense Australia, June 2011, Edition 10 Attitude to risk In the previous module we looked
More informationNew super rates and limits
AUSTRALIA POST SUPER SCHEME Insight News from the Australia Post Superannuation Scheme Quarter ending June 2014 New super rates and limits INSIDE THIS EDITION Investment results for the quarter and year
More informationCbus Investment Update How Cbus invests in Australian shares: February
Cbus Investment Update How Cbus invests in Australian shares: February Important information This presentation contains information about Cbus. Past performance of our investments is not a reliable indicator
More informationRISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS
INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding
More informationInvesting in Shares Understanding Your Shares. Australian Shareholders Association Tutorial Resource Library
Investing in Shares Understanding Your Shares Australian Shareholders Association Tutorial Resource Library Disclaimer The ASA is not licensed to give financial advice. The content of these presentations
More informationUnderstanding Investment Leverage
Understanding Investment Leverage Understanding Investment Leverage What is investment leverage? Each year, more and more Canadians are taking advantage of a simple yet powerful wealthcreation strategy
More informationHow to Trade Almost Any Asset in the World from a Single Account Using CFDs
How to Trade Almost Any Asset in the World from a Single Account Using CFDs How to Trade Almost Any Asset in the World from a Single Account Using CFDs Shae Russell, Editor INTRODUCTION TO TRADING CFDS
More informationAIB Regular Invest. This product is provided by Irish Life Assurance plc. Savings. Straightforward regular investing
Savings AIB Regular Invest Straightforward regular investing This product is provided by Irish Life Assurance plc. Drop into any branch 1890 724 724 aib.ie AIB has chosen Irish Life, Ireland s leading
More informationInvestment options and risk
ADF Super Australian Defence Force Superannuation Investment options and Issued 2 June 2016 The information in this document forms part of the Product Disclosure Statement for the Australian Defence Force
More informationINVESTMENT DICTIONARY
INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and
More informationSaving and Investing with Friends First
Times change, Friends don t. Investments with Friends First, stand the test of time. Pensions Protection Investments Saving and Investing with Friends First Conductor Savings Plan Conductor Investment
More informationANZ ETFS S&P/ASX 300 HIGH YIELD PLUS ETF. (ASX Code: ZYAU)
ANZ ETFS S&P/ASX 300 HIGH YIELD PLUS ETF (ASX Code: ZYAU) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors
More informationAMP Capital Investment Funds
AMP Capital Investment Funds Investment Statement Dated: 18 September 2015 Issued by AMP Investment Management (N.Z.) Limited Important information (The information in this section is required under the
More informationBasic Investment Education
Disclaimer: The information provided below is for information purposes only - it is not investment advice. If you have any questions about your own personal financial situation, you should consult with
More informationInvestment Menu Retail Managed Accounts
Investment Menu Retail Managed Accounts IMPORTANT INFORMATION This Investment Menu is issued by Linear Asset Management Ltd (ABN 11 119 757 596, AFSL 304542) ( Responsible Entity we, our or us ), the responsible
More informationLet s Get to Know Spread Bets
Let s Get to Know Spread Bets Spread betting is pretty cool. Here are three reasons why. Even if you ve never traded before, you probably know how the financial market works buy in and hope it goes up.
More informationInvesting in International Equities with Capital 19
Investing in International Equities with Capital 19 At Capital 19 our focus is on global investment opportunities. We believe as an investor you should invest your capital into the best possible companies.
More informationElstree. Australian Super: Are SMSF s doing it better?
Elstree Australian Super: Are SMSF s doing it better? 1 The tripling of superannuation assets means that superannuation is now larger than GDP and will probably surpass total bank assets within 4 years.
More informationChapter 1 The Investment Setting
Chapter 1 he Investment Setting rue/false Questions F 1. In an efficient and informed capital market environment, those investments with the greatest return tend to have the greatest risk. Answer: rue
More informationanz@work Employee banking benefits to suit your life
anz@work Employee banking benefits to suit your life Make the most of your employer s relationship At ANZ we value our key business relationships, like the one we share with your employer. Through this
More informationManaging Cash Flow. A guide to help you broaden your understanding of how to manage cash flow in a small business
Managing Cash Flow A guide to help you broaden your understanding of how to manage cash flow in a small business This guide looks at the key elements of cash flow and working capital and how its management
More informationBonds are IOUs. Just like shares you can buy bonds on the world s stock exchanges.
Investing in bonds Despite their names, ShareScope and SharePad are not just all about shares. They can help you with other investments as well. In this article I m going to tell you how you can use the
More informationFirstChoice. Investment Options Menu. Investments Personal Super Pension
FirstChoice Investment Options Menu Investments Personal Super Pension Issue No 2013/1, dated 11 June 2013 Issued by: Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468 This
More informationInvestment I Did Not Make
Investment I Did Not Make This might seem like a strange subject for an article. However, I think it is a very important because most teachers only show their great picks. We need to be able to recognise
More informationFundamentals Level Skills Module, Paper F9
Answers Fundamentals Level Skills Module, Paper F9 Financial Management June 2008 Answers 1 (a) Calculation of weighted average cost of capital (WACC) Cost of equity Cost of equity using capital asset
More informationInvestment Bond. Funds key features. This is an important document. Please keep it safe for future reference.
Investment Bond Funds key features. This is an important document. Please keep it safe for future reference. 2 WHAT ARE THE FUNDS KEY FEATURES? This document is part of the information we provide you to
More informationBT Investment Funds. Product Disclosure Statement. Dated 1 July 2013
BT Investment Funds Product Disclosure Statement Dated 1 July 2013 We recommend that you read this Product Disclosure Statement (PDS) in full before making an investment decision. If you have not received
More informationasset classes Understanding Equities Property Bonds Cash
NEWSLETTER Understanding asset classes High return Property FIND OUT MORE Equities FIND OUT MORE Bonds FIND OUT MORE Cash FIND OUT MORE Low risk High risk Asset classes are building blocks of any investment.
More informationPension & Investment Options. A Guide to Irish Life Corporate Business Pension Funds
Pension & Investment Options A Guide to Irish Life Corporate Business Pension s Your Click into Pensions Irish Life Corporate Business offers a wide range of online tools to keep you up to date with pension
More informationThere are two types of returns that an investor can expect to earn from an investment.
Benefits of investing in the Stock Market There are many benefits to investing in shares and we will explore how this common form of investment can be an effective way to make money. We will discuss some
More informationTrading CFDs with Trader Dealer ABN 17 090 611 680 (AFSL NO 333297)
Trading CFDs with Trader Dealer ABN 17 090 611 680 (AFSL NO 333297) Pages 1. Overview 3 2. What is a CFD? 3 3. Why Trade CFDs? 3 4. How Do CFDs Work? 4 4.1 Margin 4 4.2 Commission 5 4.3 Financing 6 4.4
More informationU.S. Treasury Securities
U.S. Treasury Securities U.S. Treasury Securities 4.6 Nonmarketable To help finance its operations, the U.S. government from time to time borrows money by selling investors a variety of debt securities
More informationArizona Property Advisors LLC
PRIVATE MORTGAGE INVESTING ARIZONA PROPERTY ADVISORS LLC www.buyazcashflow.com 480-228-3336 Table of Contents The Basics of Private Mortgages 1 What is a Private Mortgage? 1 Why Would Someone Borrow From
More informationMoney Math for Teens. Dividend-Paying Stocks
Money Math for Teens Dividend-Paying Stocks This Money Math for Teens lesson is part of a series created by Generation Money, a multimedia financial literacy initiative of the FINRA Investor Education
More informationInvestment Portfolio Philosophy
Investment Portfolio Philosophy The performance of your investment portfolio and the way it contributes to your lifestyle goals is always our prime concern. Our portfolio construction process for all of
More informationBHP Billiton Superannuation Fund
BHP Billiton Superannuation Fund Investment Menu Preparation date 11 May 2016 Issued by the Trustee PFS Nominees Pty Limited (Plum) ABN 16 082 026 480 AFSL 243357 The Fund BHP Billiton Superannuation Fund
More informationChapter Seven STOCK SELECTION
Chapter Seven STOCK SELECTION 1. Introduction The purpose of Part Two is to examine the patterns of each of the main Dow Jones sectors and establish relationships between the relative strength line of
More informationYour investment options explained
Your investment options explained for the Plum Superannuation Fund Issued by the Trustee: PFS Nominees Pty Ltd ABN 16 082 026 480 AFSL 243357 Fund: Plum Superannuation Fund ABN 20 339 905 340 Administrator:
More informationGood for business: get your forex transactions on track
Companies Foreign currencies Good for business: get your forex transactions on track Do you want to hedge foreign currency risks or invest in forex? A bank that takes your needs into account and provides
More informationETF Portfolio Solutions Core Diversified ETF Model December quarter 2013
ETF Portfolio Solutions ETF Model December quarter 2013 PORTFOLIO SOLUTIONS Portfolio Objective The broad investment objective of the ETF Model is to offer financial advisers an ETF-based investment portfolio
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common
More informationReal Estate Investment Newsletter November 2003
Maximizing Returns on Equity Why and How In this newsletter I will explain some financial management concepts that provide a framework for maximizing your wealth accumulation over time. Proper application
More informationIntroduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors...
Table of Contents Introduction... 4 A look at Binary Options... 5 Who Trades Binary Options?... 5 Binary Option Brokers... 5 Individual Investors... 5 Benefits of Trading Binary Options... 6 Binary Option
More informationGETTING READY TO INVEST
GETTING READY TO INVEST 6 SAVING AND INVESTING Learn about... IMPORTANCE OF SAVING AND INVESTING INVESTMENT ALTERNATIVES RISKS & REWARDS ASSOCIATED WITH SHARE INVESTMENT ESTABLISHING INVESTMENT OBJECTIVES
More informationClosed to new investors
Managed Investment Funds Product Disclosure Statement A range of funds that allows you to create an investment portfolio that suits your individual needs This is a combined Financial Services Guide and
More informationHow should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide.
How should I invest my Pension/Investment money? Thank you to AXA Wealth for their contribution to this guide. www.increaseyourpension.co.uk Welcome to making investing simple Investing doesn t have to
More information2014 Long-term Investing Report
FULL REPORT // JUNE 2014 2014 Long-term Investing Report Taking a long-term view of the historical investment landscape. ASX is one of the world s leading exchange groups. We operate a fully integrated
More informationInvesting in volatile times. Advice & Answers Financial Services
Investing in volatile times Advice & Answers Financial Services Agenda Sub-prime mortgages Investment update Agenda Recent returns Global investment update The importance of diversification Market returns
More information