September 2013

Future Doubt


Investing

News Alert - Can your intended auditor still audit your SMSF?

10 September 2013 |

Alert signA self-managed super fund (SMSF) trustee must appoint an independent approved SMSF auditor to perform a financial and compliance audit of their SMSF's operations before they lodge their SMSF annual return. New rules are in place regarding auditors that you need to know and there are some time critical issues that need to be addressed well in advance of lodging your SMSF return.


SMSFs not to blame for higher property prices

26 September 2013 |

BlameA closer examination of the evidence suggests that SMSFs are being scapegoated over recent property price rises. In fact, the investments by SMSFs have been modest. Moreover, the recent increase in prices is mainly a recovery after the effects of the GFC, according to one economist.


David Jones under a cloud

26 September 2013 | Broker reports editor

UncertainBrokers are pessimistic about the prospects for the share price of retailer David Jones. The company has aggressively restructured, but analysts believe there is still a way to go. For investors looking for exposure to the retail sector, Myer may be a better choice.


Australians' love affair with property

26 September 2013 |

Love PropertyAustralians rate property as as safe as cash. That is a brave call when house prices plummeted in many parts of the world after the GFC. But Australia's experience has been quite different and now SMSF investors are eyeing off houses, which is causing the Reserve Bank to worry.


Macquarie Bank makes slow comeback

25 September 2013 | Broker reports editor

DoubtMacquarie Bank was once the darling of the stock market and a potent global player. But then it struggled to survive the GFC and has found the environment much tougher for doing the kind of leveraged deals in which it specialises. Brokers are sitting on the fence, but the dividend yield may attract.


Investors flood into the property market

25 September 2013 | Broker reports editor

InvestorsRushToPropertyMuch of the current house price boom is being driven by investors looking for ways to increase yield. So while housing remains out of reach for many owner occupiers, investors are hunting around. It is a dangerous sign for super investors.


Sydney house prices set to surge

25 September 2013 | Staff reporter

SydneyA report on Australia's housing market predicts that lower interest rates will start feeding into a strong house price recovery. Sydney is expected to be the city that records the strongest growth with other states getting more modest gains.


BHP and Origin to benefit from rising gas prices

23 September 2013 | Broker reports editor

GasPricesGas prices in Australia are on the rise because of the LNG market. BHP and Origin are two of the beneficiaries.


Property's two looming dangers

23 September 2013 | PSI

RisksAustralian property prices benefited from a mortgage boom then a mining boom. As these end, there are hidden risks.


IMF sounds alarm on property

23 September 2013 | Staff reporter

AlarmEven the International Monetary Fund is worried about Australian property prices. It will be sending a team of economists to Australia to examine it further.


Do we have too many big homes?

22 September 2013 | Staff reporter

PropertyBoomThe population is ageing and living in big homes. It is a sign that there may be problems in the property market, but that is not impeding auction results.


Super funds have stellar year

22 September 2013 | Staff reporter

StellarYearSMSF investors like to take control of their investments. But in some years it is hard to keep up with fund managers. Last year the average balanced fund return was a whopping 14.7%.


Banks worried about property boom

22 September 2013 | Staff reporter

PropertyBoomThe banks are putting in buffers on mortgages to protect them if interest rates start to rise again. It is a warning to property investors.


Do diversified financials deserve a punt?

17 September 2013 | PSI

PortfolioThe diversified financials sector can help investors diversify their portfolios, but there are a number of questions about the sector. There is some analysis of preferred stocks but caution is justified.


Questions about the diversified financials sector

16 September 2013 | PSI

RiskThe diversified financials sector can help investors diversify their portfolios, but there are a number of questions about the sector. There is some analysis of preferred stocks but caution is justified.


Australian banks v international hedge funds

15 September 2013 | PSI

TargetReports are coming out that international hedge funds are targeting Australian banks as overvalued. But how accurate are their judgments, and are they to be trusted?


Is CBA getting overheated on lending?

12 September 2013 | PSI

CBAThere are growing concerns about the mortgage market becoming overheated due to the fall in interest rates. The most aggressive player is the Commonwealth Bank and a broker report suggests that there may be risks ahead.


Airlines are being re-rated

10 September 2013 | PSI

Airline's re-ratedThere is increasing demand for air travel in Asia, but that does not necessarily translate into good investment prospects. The weakening Australian dollar is already having a negative effect, although the removal of the carbon tax will be a positive.


The election's impact on the stock market

09 September 2013 | PSI

Abbott winThe election result was anything but a surprise, so the market is likely to have anticipated many of the consequences. But it is still worth looking carefully at what the impact will be on sectors and companies.


Australia's super funds growing sharply

09 September 2013 | PSI

Super growthAustralia's super funds grew by a fifth in 2012 and are up 13% since 2007. It is part of a global picture that sees global super assets top $US14 trillion. It will have effects on investment behaviour in the medium term.


Australian house prices

08 September 2013 | PSI

House pricesAustralia's housing market is often described as one of the most over valued in the world, but it is worth examining the international context a little more closely. The emerging strength in the American market may be a positive sign.


The battle for the banks after the GFC

04 September 2013 | PSI

BankThe global big banks have been quietly preparing to take depositor's money if they get into trouble again. Meanwhile, there is a push amongst regulators to make banks more accountable by focusing on equity. It is the future of the global financial system at stake.


Conventional retailers catch up

04 September 2013 | Broker reports editor

Retail SalesRetails sales surveys are indicating some moderate growth. As an indicator of the strength of the wider market, they may also be a useful leading indicator, underlying favourable sentiment for stocks with good dividend yields.


Lend Lease as a global play

04 September 2013 | PSI

Lend Lease cashflowLend Lease's Australian operations are coming under some pressure but the company has a growing international portfolio. This suggests that the stock is more of an international play, which may be attractive if the Australian dollar continues to slide.


Rio offers quality exposure and uncertainty

02 September 2013 | PSI

Mining TruckRio Tinto should be on attractive fundamentals but the earnings picture looks problematic, particularly with China's economy easing. Investor sentiment is at best mixed, but the quality of operations should be high.


News

Telstra's dominance not over yet

26 September 2013 | Reynard

TelstraAustralia's dominant telco is struggling to transition from the old world to the new. But there are many reasons why it still should be seen as an important investment option for super fund investors. The big question is how the company will be affected by the politics of the NBN and its relationship with the Abbott government.


Are engineering stocks overheated?

19 September 2013 | Reynard

OverheatedStocks in the Engineering and Contractor sector have jumped sharply over the last month. This may be much more a case of rising sentiment rather than a fundamental change in the economics of the sector.


Developing world's catch up slows

13 September 2013 | PSI

Emerging economiesThe growth of developing economies, especially China, has been the fastest in the history of the world. But the emerging giants are beginning to slow down and it is changing the investment environment.


How to read the mining and energy sectors

12 September 2013 | Reynard

LNGIron ore has been, along with coal, the two big commodity booms in Australia over the last decade. The next one is likely to be LNG, which is set to be Australia's second biggest export. How should investors read these difficult sectors?


Dutch disease and orange pants

27 September 2013 | PSI

OrangeSome important insights into banking, capital and orange pants.


Up side down look at fund managers

12 September 2013 | PSI

Fund MangersA humorous look at some of the fund managers working so hard to increase yours and their value. Only not necessarily in that order. Not to be missed.


Ask an economist, then do the opposite

04 September 2013 | PSI

SlitherShankAustralian's strange obsession with bricks and mortar with bricks and mortar explained. Then it is explained what to do about it. Or not.


Economics

The great rotation into property

26 September 2013 | PSI

Back-into-propertyThere are growing signs that confidence is returning in the property market. After hoarding cash and reducing debt in the wake of the GFC, Australians are starting to look at property investment again. That is also true of SMSF investors, who are bringing in large amounts of funds into play.


Big super funds target SMSF owners

26 September 2013 |

SMSF TargetThe big industry and retail funds have been losing business to SMSFs, who want to take over their own investing. The big funds don't like it so are increasing the pressure on the Abbott government to make the rules more difficult for DIY super. The battle will continue.


World economy looking strong

23 September 2013 | Staff Reporter

The world economy appears to be turning the corner. It may be time for investors to position more aggressively as the after-effects of the GFC finally wane.


The Fed's decision to keep the taps on

19 September 2013 | PSI

Money tap
The decision by the US Federal Reserve to keep pumping out money has caught many by surprise. It shows just how fragile the global economy still is.


China looking stronger -- for now

16 September 2013 | PSI

China EconomyChina is looking to have rebalanced its growth, which is critical for the Australian market. But can the Communist Party manage the massive imbalances in the economy?


What reporting season is telling us

04 September 2013 | PSI

Reports
The reporting season had relatively few surprises and resulted in low market turnover. That is probably good news for the stock market and underlines its advantage as a yield play. We look at how some of the sectors performed.


The debt in retirement puzzle

02 September 2013 | PSI

Debit
The conventional wisdom is that debt should be reduced or eliminated in retirement. But the lowest interest rates in decades have changed the risk and reward equation, and some closer scrutiny is just


Portfolio

Million dollars not enough super

23 September 2013 | Staff reporter

Young workers can expect to have over $1 million when they retire, but it will probably not be enough. It is an argument for salary sacrificing relatively early.


Investor Philosophy: Investing in the right place, at the right time.

16 September 2013 |

Time for successInvesting in the right place, at the right time, can make a big difference to the returns over the life of the investment. The right structure and implementation can have a major influence on the amount of income you could receive when you  retire. Building the right portfolio takes time and the structure is crucial. The time to start building the right portfolio is now and you need to construct it in the way that will deliver the greatest benefit from the available funds.


Super

SMSF Supervisory levy transition

11 September 2013 |

Up to 1 July 2013, the SMSF supervisory levy was payable for the financial year to which the self-managed super fund annual return (SAR) relates. 
From 1 July 2013, the levy will be payable for the financial year in which the annual return is due.


SMSF Compliance: What the Auditors look for

08 September 2013 |

Each year your fund will need to be audited before you can submit your annual return. We provide a list of 46 key things that the auditors will be looking for in order for a SMSF to comply with the rules and regulations stipulated by the Superannuation Industy (Supervision) Act 1993 (SISA) and the Superannuation Industry (Supervision) Regulations 1994 (SISR) Acts. It is well worth your while knowing the rules well in advance of the reporting season as any breaches could cause you a lot of grief and may not be able to be unwound in time for when you must submit your return.


 

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