Funds Focus Newsletter January 2013

Pirates fail the sniff test but pull out a 240% return (Part 1)

Pirates fail the sniff test but pull out a 240% return for investors – Arrr or is it Arrrgghh!
In light of the number of new Listed Investment Companies (LICs) that have come to market over the last year, I felt it would be beneficial to write about the analysis we did for an LIC we didn’t invest into. Clients can often overlook that we are constantly analysing and considering new opportunities and the benefit of advice is as much avoiding the disasters as it is picking the most suitable

lic, pirate, henry morgan, HHL, bridgeman, insider

The Insider – Insights into offshore term desposits

I recently had a client approach me asking my thoughts on a Private bank offering them 8% for a 3 year term deposit held in USD.

My initial thoughts were it’s a scam,8%pa seems ridiculously high for deposits in AUD, but 8%pa in USD is ludicrous. Australian Term Deposits are around 4% for 3 years (with an RBA rate of 2.5% and the tailwind of cash hungry banks), by contrast, the US Fed Reserve rate is 0.25% and I would be surprised to see anything North of 2% but more likely around the 1%-1.5

Fixed Income, Term Deposit, investment, the insider, Azerbaijan, Manat, offshore

The Insider – A tale of poor advice on one of Australia’s best superannuation funds

Defined Benefits (DB) superannuation schemes are few and far between in Australia and offer a rare commodity in financial services: a guarantee which is paid for by the scheme and not the member.
In this article, we assess a DB scheme we consider to be “golden handcuffs” for anyone lucky enough to be a member of it – and how Holden employees can take advantage of this.

Each scheme differs, but DB schemes generally offer a guarantee of either a lump sum or income at retirement,

superannuation, poor advice, holden pension, defined benefit superannuation, company super fund