Manage LVRs to accommodate changes in volatility
Extreme volatility significantly increases the probability of receiving a margin call. Ron Bewley explains If there is one thing investors have learned from the recent bear market, it is that there is much truth behind the statement that “gearing amplifies risk as well as returns”. Not just because the market has gone down, but because
June 07, 2009
Residential recovery not far away
The signals on the housing market are increasingly positive, says Frank Gelber We’re still getting conflicting signals on residential property. Will it collapse? Will it boom? Are prices too high? Have we borrowed too much? Can we afford it? What are we to make of falling prices for high-value housing and holiday homes? Is the
June 07, 2009
When giving advice is well received
Big losses from financial markets underline the value of philanthropic knowledge to broadening planners’ advice offerings, writes Simon Mumme. Conversations about investment losses can only last so long. Many planners are understandably searching for a different discussion, and philanthropy is one that can extend client relationships beyond the realm of expected – and unexpected –
June 01, 2009
No quick recovery, but not a deep recession
The worst of the downturn will hit Australia this year. But there won’t be a quick rebound. While Australia won’t experience anything like the severity of the recessions in many developed overseas economies, there is a second phase of the downturn which will impede recovery for some years yet.
April 07, 2009
What inspires the clients that giveth?
The awesome philanthropic response to the Victorian bushfires provides insights into the powerful motivations behind giving, writes Simon Mumme. As emergency services fought the inferno that razed towns outside Melbourne in February, Australians were helping survivors to cope and rebuild their lives. Ten days after “Black Saturday”, when firestorms ravaged regional Victoria, the national peak
April 01, 2009
Time to revise expectations as golden era comes to an end
Most property people think retail prop erty is relatively insulated from cycles because of its secure cash flows. While the current market is being affected by both the problems of the listed property trusts (LPTs) and the weaken ing of retail sales, the logic is that once this is all over, retail returns will recover
March 07, 2009
To hedge, or not to hedge
More than half of planners intend to use capital protected products in the year ahead – but is it the right strategy for clients? Kristen Paech and Simon Hoyle report. Cashed-up but cautious clients are looking to invest in growth assets this year and are showing heightened demand for capital protected solutions. While markets were
March 07, 2009
Protecting philanthropy for the long term
The philanthropic sector has ramped up its fight against a proposed mandated distribution rate for prescribed private funds (PPFs), as Simon Mumme reports. The philanthropic sector fears that a high compulsory donation rate could threaten the viability of prescribed private funds (PPFs), and is asking Treasury to enforce a level of giving consistent with the
March 01, 2009
The shape of things to come
What an extraordinary year was 2008 – the year of the financial crisis. This year we find out the damage to the real economy. Meanwhile, markets remain volatile, focused on the short term. The collapse in the equity market last year was an overreaction, opening up invest ment opportunities for those brave enough to take
February 07, 2009
Giving at a good rate
A proposal to mandate a donation rate could threaten the future of the philanthropic vehicles used by wealthy donors, writes Simon Mumme. Philanthropy Australia, the national peak body for philanthropy, is concerned that a new law proposed by the Federal Government could wipe out a steadily expanding population of donors to the community sector –
February 01, 2009
Global financial crisis nips upturn in the bud
As the financial crisis came to a head over the last four months, the severity of the credit squeeze escalated damage to the real side of economies around the world, including Australia. Economic forecasts from the RBA, Treasury, the OECD, the IMF and BIS Shrapnel, amongst others, have all been revised downwards. And that has
December 07, 2008
Guaranteed giving when society is hit hardest
Even as financial stress affects our capacity to give, specialised philanthropic vehicles can keep funds flowing to the community sector, writes Simon Mumme. As the Australian economy contracts, the community sector will work overtime as more people enduring fiscal hardship seek its services. But non-profit organisations will have fewer resources to meet this demand. The
December 01, 2008
