Investment Strategies

Driven by dividends: Aussie sharemarket over the past decade

Dividends accounted for more than half the growth of the Australian sharemarket over the past decade. The S&P/ASX 300 produced a total return of 7.8 per cent a year over the 2010s, with dividends accounting for 59 per cent of…

2019’s top super fund performers

Superannuation funds produced strong returns in 2019, continuing a run of positive returns that has been going for eight years. Growth funds were up by close to 15 per cent. UniSuper Balanced was the top performing “growth” fund in 2019,…

Shining the spotlight on best and worst MySuper accounts

Underperforming superannuation funds are set to merge or shut down if improvements are not made quickly. The Australian Prudential Regulation Authority (APRA) will be looking for significant change from poorly performing superannuation funds, following the release of its MySuper heatmap.…

Active fund persistence is weak

Only a minority of high-performing Australian managed funds persist in outperforming their benchmarks or stay in their respective top quartiles over consecutive years, a new study shows. According to an S&P Dow Jones Indices report, Persistence of Australian Active Funds,…

Tech exposure with some downside protection

Big global tech stocks have continued their strong run, with some tech stock indexes up by close to 40 per cent so far this year. But with so many asset managers advising caution about the outlook for equity markets, investors…

Openpay pitches a differentiated BNPL offering

Buy now pay later company Openpay launched its initial public offering last week, with a pitch to investors that there is plenty of opportunity for its differentiated product in an increasingly crowded market. The company is offering 31.2 million shares…

Time to avoid overvalued companies

For equity investors who worry about the prospect of dislocation in the Australian sharemarket in the year ahead, asset manager Aaron Binsted shares your concern. And he has a few suggestions. Binsted is an Australian equity portfolio manager at Lazard…

What price Prospa now?

The chair and joint chief executives of small business lender Prospa were contrite at the company’s annual general meeting last week, offering apologies for the company’s failure to meet prospectus forecasts. Now, the questions for investors are when the company…

ATO reports high super contribution breach numbers

Keeping up with changes to superannuation contribution rules over the past couple of years has been a challenge for super fund members. The tax office reports that in the 2018/19 financial year it issued 192,000 determinations to people who had…

Dogs of the Down Under flops

Investment manager DNR Capital has attempted to reproduce the long-standing Dogs of the Dow investment strategy, using a local sharemarket index. It did not work. Dogs of the Dow is an investment strategy that attempts to beat the market index…