LICs are investment companies that provide an investor or superannuation fund with exposure to professionally managed assets. They are like managed funds but have some key differences. Firstly, they are "closed-end" vehicles - which means they do not regularly issue new shares or cancel shares as investors join and leave the fund. Instead, investors buy and sell
It's been said that cash is the riskiest asset class. But how could this be ? Isn't cash the most liquid asset. Is it not the most stable asset ? Is it not the one asset class that most likely will not have a negative return? There's a featured article ("Risk and the 401k investor: How Plan
Interesting data recently published in the Credit Suisse Global Investment Returns 2011 Yearbook, puts the Aussie sharemarket at the top in terms of performance (in local currencies) over the long term. And by long term, we mean long term (111 years !!). Since 1900, the Australian market has delivered a real annual return of 7.4%. That's better
The first week of August 2011 saw equity markets drop sharply. Most global equity markets (including Australia’s) were down by between 5% and 10%. The Australian share market is currently trading at the same price level as it was in July 2009. However, since this time the All Ordinaries Accumulation Index is still up over
An illuminating article in the Australian Financial Review (23/7/11) talks about how the big banks etc. (and the financial planners aligned to them) "funnel most of their client's money into their own products". The article points out that: according to Roy Morgan Research, AMP aligned planners are directing more than 80% of their clients' superannuation
Market Update Equity markets have been extremely volatile during July with daily movements of up 2% (both up and down). The financial news continues to be dominated by Global sovereign debt issues. The European community have nearly finalised the second sovereign debt rescue package for Greece. As part of this agreement they have also looked
An interesting article in the Australian Financial Review (23/7/11) talks about how wealth will be transferred from the Estates of baby boomers to the younger generation coming up behind them. Baby boomers (the first of whom turned 65 this year), currently own 55% of the country's private wealth (estimated to be well over $1 trillion) and how
A Harvest Special Report. Factors that impact retirement planning for women It is estimated that by 2019, women, on average, will have super investments half that of men*. Data from 2004, showed that 30% of women had no superannuation and that 50% of women had $8,000 or less. To compound this, women tend to live
Oliver's Insights is special commentary by Dr Shane Oliver, Chief Economist and Head of Investment Strategy, on issues and trends affecting the economy and financial markets. We find it well written, well researched and informative. Click here for the link to "Oliver's Insights" on the AMP Capital Investors website: Oliver's Insights (see "Oliver's Insights" on
Another economist who we beleive communicates in a way that is easy to understand, is BT's Chief Economist, Chris Caton. A link to his commentary on the BT website is as follows: BT Chief Economist - Chris Caton ["Caton's Corner"]