Increasing government expenditure on social infrastructure is driving huge levels of investment into the sector. There are now several options for retail and wholesale investors to gain exposure to this asset class, which was previously open only to institutional investors.
Netwealth and HUB24 are expected to continue eating the incumbents’ lunch, according to UBS. Meanwhile, as adviser numbers have halved the average amount of money they manage has doubled.
The cost of living has risen dramatically in 2022, with the Reserve Bank of Australia increasing the cash rate seven times since April and the major banks keeping pace on mortgage rates. But there could be good news on the horizon.
Superannuation funds are more commonly offering ‘lifecycle’ investment options that adjust with a saver’s age. But a recent paper by the superannuation regulator highlights that some of these funds aren’t sticking to their mandates.
The Australian dollar’s appreciation from recent lows is eroding returns from unhedged international investments. With analysts mixed on where the currency is heading, opting to hedge foreign currency exposures could provide investors with some peace of mind.
Financial planners are advising Australians to diversify out of property and put more money into superannuation, as statistics show falling asset values contributing to a nearly $500 billion decline in household wealth for the June quarter.
Vanguard Australia recently launched a superannuation product aimed at undercutting competitors, with a low-cost default fund option that adjusts automatically as savers age.
The Reserve Bank of Australia is sticking to its view that inflation will be temporary, despite its poor forecasting track record. Economists aren’t so sure.
Analysts say Macquarie Group, which posted a $2.3 billion half-year profit and an 11 per cent increase in net operating income, can continue to grow its performance fees revenue and profits even if share and bond markets fall.
Australians should be putting more money into superannuation and diversifying out of property, some say, even as super performance remains a question mark.
