The recipe for successfully advising on sustainable investments

In the past 12 months we’ve seen a rising tide of interest in sustainable investments – once considered niche, now many investors, and a growing cohort of financial advisers, acknowledge that funds and assets which take environmental, social, and governance (ESG) factors into account have become mainstream. Moreover, they are noticing that sustainable investments are performing in line with, or better than, regular investments.

CGT relief options for small businesses

Many considerations come into play when a business owner is looking to dispose of business assets as part of their retirement planning. Matters that typically need to be considered include:

1) Managing any capital gains tax (CGT) resulting from the disposal of the business assets, and;

Using managed accounts in your advice proposition

Russell Investments’ annual 2020 Value of an Adviser report found that the tax-effective investing benefit advisers provide to clients could add at least 1.5% p.a. to a client’s returns – representing a significant part of the overall value advisers deliver to clients.

Tax has often been viewed as the realm of accountants. However, many advisers provide expertise on managing and optimising investment tax and do so with the help of managed accounts.

The push for sustainable infrastructure post COVID-19

The COVID-19 pandemic has meaningfully hit most countries in the world, bringing with it a toll on human lives and livelihoods. As governments worldwide move to mitigate the public health crisis and support economies through monetary and fiscal policy, many are asking whether governments will stimulate their economies with investments in infrastructure.

Seeking stability in volatility

Today’s investor is faced with minimal fixed income returns, late-stage equity valuations, and the prospect of growing market volatility. But now they may have somewhere to turn: convertible bonds.

Convertible bonds are corporate bonds issued with a call option that gives the holder the right to convert the bond to equity shares, bringing together equity and fixed income properties in a unique combination.

Holding property in SMSFs

Auditors are the mid-point between a self-managed super fund (SMSF) and the Australian Taxation Office (ATO) and therefore have a statutory responsibility to determine whether the fund has met the superannuation standards in the Superannuation Industry (Supervision) Act 1993 (SIS Act).

A fund that owns residential or commercial property should put in place procedures and supporting documents that the fund complies with the legislation.

Here are some things auditors may be interested in:

1. WHO OWNS THE PROPERTY?

Holding property in SMSFs

A fund that owns residential or commercial property should put in place procedures and supporting documents that the fund complies with the legislation.

Here are some things auditors may be interested in:

1. WHO OWNS THE PROPERTY?

The great currency differentials

Much has been written about comparisons between the Global Financial Crisis (GFC) in 2009 and that of today. Having worked in the currency markets since the late 1990s, I can see four stark differences between 2009 and 2020 and the factors influencing currencies.

1. THE CURRENT FISCAL EASING IS LARGER THAN IN 2009, BUT VERY DIFFERENT IN NATURE

Considering a listed vehicle

The listed investment company (LIC) and trust (LIT)sector contains some of the largest and most cost-efficient actively managed investment entities that can be accessed by retail investors in Australia with more than 700,000 individual investors in LICs and LITs.

Here we outline some of the key things financial advisers and investors need to know about this unique sector.

PROFESSIONAL INVESTMENT MANAGEMENT

Alternatives for income

Even before COVID-19, a surfeit of support from central banks around the world had created a global glut of liquidity, contributing to lower interest rates. These monetary policies helped to bolster the prices of stocks and bonds and ensured the flow of credit in economies, but they made it difficult for ordinary investors to get any income from traditional sources like government bonds.