News

The end of the pandemic is leading to a “new normal” for the ETF market in Australia, with thematic funds set to steal the spotlight from vanilla ETFs as investors look to take advantage of megatrends like decarbonisation, Global X’s Blair Hannon says.

The ATO is planning a midyear release of updated guidance on the tax deductibility of financial advice, according to panellists at a recent industry event, with indications that a new interpretation could see upfront advice fees deemed deductible.

Four AMP Group businesses deducted insurance premiums and advice fees from superannuation customers despite knowing they had died, a judge ruled, with two of the companies – AMP Life and AMP Financial Planning – hit with $24 million in penalties.

With a successful and orderly energy transition “far from guaranteed”, disruptive themes are set to profoundly affect financial markets for years to come, the asset manager said in a new report. Investors should act – and potentially reallocate – accordingly.

There are now more than 22,000 cryptocurrencies on the market, but most have small market capitalisations and unclear use cases, according to a recent Invesco report. The blockchain technology underpinning them, on the other hand, could change the infrastructure of finance.

For investors looking for alternatives to equities and fixed income, listed investment companies and trusts provide diversification and short-dated exposure to long-term investment strategies, not to mention inflation protection, industry leaders said at a recent event.

Analysts expect the bullish momentum for the safe-haven asset to continue amid sinking investor appetite for risk, with prices buoyed by an expected peak in US interest rates and a weakening US dollar.

While global markets recorded a second consecutive quarter of growth in Q1, only 13 per cent of ASX200 results beat forecasts, and signs that an economic reckoning is ready to unfold are flashing red, analysts say.

The federal government plans to use part of the $4.2 billion projected budget surplus to provide cost-of-living relief for Australian households and small businesses. It’s also moving forward with controversial plans to change tax concessions for the superannuation industry.

Higher net interest margins helped drive a nearly 17 per cent increase in the banks’ combined cash profits from a year ago. But a 400 per cent increase in their interest expenses and stiffer lending competition are contributing to a weaker outlook going forward, analysts say.

Understanding the effect of economic changes on the stocks in a portfolio helps investors make smart allocation decisions. For infrastructure investors, adjusting the balance between defensive utilities and user-pays infrastructure stocks as conditions change can ensure superior returns relative to general equities, said ClearBridge Investments’ Nick Langley.

Sustainable investing requires a balancing act when it comes to retail behemoths like Coles and Woolworths, which can have positive ESG policies while selling products with the potential to do harm. According to Australian Ethical, investors should assess these companies with nuance and a measure of compromise.