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Most investors are accepting more risk in their portfolios in the search for income, and it's not only in shares. The recently issued 30-year Australian Treasury Bond will return $100 in March 2047 with 3% each year along the way, but heaven knows what it will be worth between now and then. And it's listed (ASX:GSBE47) so anyone can buy it. It launched to $13 billion of demand.

Roger Montgomery says he cannot recall a time when the share prices of so many companies have fallen as much in a day or two of trading, and he explores the reasons why. 

It's only two months until the most significant age pension changes in a decade come into effect. Rachel Lane explains that exceeding the new thresholds by $100,000 will lead to a loss in pension of $7,800, meaning those assets will need to earn more than 7.8% for a retiree to be better off.

The Impact Investment Summit held in Sydney last week highlighted the opportunities in the nascent sector, but Alan Hartstein came away from the renewables discussions feeling this land of sunshine is falling behind. 

The big financial institutions might see some new fintechs as a disruptive threat, but Danny John shows how cooperation is a likely future business model in many cases. We also attach below the new EY FinTech Australia Census 2016 which profiles the fintech sector. 

It's become increasingly challenging for fund managers to deliver on targets like 'CPI+5%', and Simon Doyle says success will require aggression in market upswings while avoiding the corrections.

In this Melbourne Cup week, for those tempted to buy into the thrills, we reprise Garry Mackrell's incredibly popular article on owning and breeding race horses.

This week's White Paper from Challenger/KPMG prompted widespread debate about whether super funds need a 'Chief Retirement Income Officer', and two executives from a major fund respond.

Next week, we will have a special edition on Friday instead of the usual Thursday. 

Graham Hand, Managing Editor
The latest insights and ideas from hundreds of market experts

Newsletter Edition 180, 4 November 2016


Market serves up some savage volatility
by Roger Montgomery
We are seeing rapid one-day movements in some large stocks of 10% to 20%, especially those that were ‘priced for perfection’. What is causing this, and does it present a threat or an opportunity in a portfolio? Read more…

Pension winners and losers from 1 January
by Rachel Lane
With the new pension rules, the magic number is 7.8%. If a pensioner sells an asset to fund an improvement in the family home, the pension may increase $7,800 pa for every $100,000 over the assets test. Read more…

Lack of policy direction hurting renewables
by Alan Hartstein
The renewables industry is hampered by the combination of a shallow venture capital market and capital-intensive technology. The recent power outages in South Australia did not help. Read more…

Banks team up with their FinTech competitors
by Danny John
Although many people regard FinTechs as threats to banks and large incumbents, most of the new kids on the block see the value in forming beneficial relationships and cooperating rather than competing. Read more…

Achieving real returns in a low-growth world (part 2)
by Simon Doyle
Meeting real return objectives in a low growth environment is a challenge. Investors will need to use cyclical volatility to their advantage by riding the upside and, importantly, avoiding the falls. Read more…

Meeting the retirement outcome challenge
by Graham Hand
Super funds have Chief Investment Officers charged with optimising investment returns, but should they also appoint a Chief Retirement Income Officer (CRIO) to achieve the best retirement outcomes? Read more…

The economic reality of breeding and owning racehorses
by Garry Mackrell
Before you jump in and invest in that racehorse with its potential Group 1 winnings and breeding credentials, here is a reality check on your dreams of fame and fortune from someone in the know. Read more…

“Australia’s foremost independent financial newsletter for professionals and self-directed investors.” - Australian Investors Association

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Guiding members safely down a path in retirement

The return of member money is not the same as the return on money. Should a CIO be covering both these issues, or should super funds appoint a Chief Retirement Income Officer as well? Read more.
Additional features this week

EY FinTech Australia Census 2016: profiling and defining the fintech sector

Weekly Market Update from David Bell, CIO at Mine Wealth & Wellbeing

PDF version of Cuffelinks Newsletter

Continuing Professional Development (CPD) hours quiz

Plus updates and announcements on the Sponsor Noticeboard on our website
 
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