Tag Archives: Australia

Flying ETFs…a tenuous link

The month of August fills me full of joy every year as (a) it’s my birthday, (b) it’s the Summer in London (at least 1 week of Sun!) and (c) I don’t get on a plane to support our many ETF partners around the world. Aeronautically speaking though, August is a notable month – way Read more […]

Investing and the Paradox of Skill

With the release of the latest SPIVA® Cross-Country Comparison results, the debate between active and passive investment management has once again ignited.  Proponents of passive management point to the SPIVA data as evidence of the inability (in aggregate) of asset managers worldwide to beat relevant passive indices over meaningful periods of time.  Meanwhile, proponents of Read more […]

An Index Provider’s Perspective on the Growing Australian ETF Market

The Exchange Traded Fund (ETF) landscape in Australia continues to grow and mature in assets under management (AUM) and in number of ETF products offered. As of June 2015, the Australian ETF Market was reported to be at A$18.1 Billion in AUM and 107 ETFs traded on the ASX. As an index provider with deep Read more […]

Tax-Aware Shift in Superannuation

This is the fourth blog in a series on the evolution of Australia’s tax-aware investment management (TAIM) landscape. The Super System Review of the superannuation industry was completed in mid-2010, a year after the industry crossed the AUD 1.1 trillion asset mark. The Review included an observation that although taxes are often the single biggest Read more […]

Tax-Aware Superannuation – A Closer Look at Dividends

This is the third blog in a series on the evolution of Australia’s tax-aware investment management (TAIM) landscape. Large asset owners, including statutory authorities, university endowments, and charitable bodies dominate the Australian investment landscape.  However, the largest asset owners by asset size are the 260-odd superannuation funds who collectively manage some 60% of Australia’s ~AUD Read more […]

Historical Impact of Australian Taxes on Returns

This is the second blog in a series on the evolution of Australia’s tax-aware investment management (TAIM) landscape. One historical record of the impact of taxes on returns in Australia is the annual Russell Investments/Australian Securities Exchange (ASX) Long-term Investing Report, which measures pre- and post-tax returns for various asset classes over 20-year periods.  The Read more […]

Tax-Aware Australia: An Idea Whose TAIM Has Come?

This is the first blog in a series on the evolution of Australia’s tax-aware investment management (TAIM) landscape.   In 1999, a new method of calculating Capital Gains Tax (CGT) was introduced in Australia, with assets acquired after its commencement taxed on the basis of time held and type of taxpayer. Assets held for less Read more […]

Australian Bonds Delivered Better Risk-Adjusted Return than Equities

Australian equities and bonds both had double-digit returns last year.  Looking at the one-year returns as of Jan 30, 2015, the S&P/ASX Australian Fixed Interest 0+ Index gained 10.22% and the S&P/ASX 200 (TR) rose 12.48%. While the levels of volatility came down in both markets, the annualized volatility of the S&P/ASX 200 (TR) maintained Read more […]

These Assets Mix With Oil Like Water

While many assets have some relationship with oil, there are varying degrees of correlation and even a few surprises. For example, Canadian equities are more correlated with oil than are the emerging markets and the US equities; Australian equities are barely correlated with oil, and China who is not nearly as big a producer as a consumer is moderately Read more […]

The Great Barrier To Commodities Down Under

This week I am in Australia meeting with investors about commodities.  Usually when I visit a heavy natural resource producing country, the conversations flow easily since the locals understand commodities.  We have been discussing farms, coal, iron ore and tin – subjects that engulf the culture of the locals.  The Australians seem to know all Read more […]