Australia: Are we likely to see any changes in tax?

Published: May 31, 2015

There’s been a lot of debate about tax concessions and this followed from the tax discussion paper, released by the Federal Government a month or so ago. There seems to be four areas of focus:  Negative gearing Franking credits Capital gains tax discount Tax concessions regarding superannuation In this video, AMP Capital’s Head of Investment […]

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RBA Board to leave the cash rate unchanged at 2.25 per cent

Published: April 7, 2015

Statement by Glenn Stevens, Governor: Monetary Policy Decision At its meeting today, the Board decided to leave the cash rate unchanged at 2.25 per cent. Moderate growth in the global economy is expected in 2015, with the US economy continuing to strengthen, even as China's growth slows a little from last year's outcome. Commodity prices […]

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What is risk in investing?

Published: April 1, 2015

Introduction What is risk? Surely that is a stupid question as everyone knows what risk is when it comes to investing. Investopedia (www.investopedia.com) defines risk as “the chance that an investment’s actual return will be different than expected”. It’s actually quite a complex concept because it could mean different things to different people depending on […]

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China – the usual worries, but no boom and no bust

Published: March 19, 2015

Keypoints: Chinese economic data is off to a soft start this year. However, there are reasons for optimism that growth this year will still come in “around 7%”. Monetary policy is easing, the Government is alluding to more stimulus and the threat from the property slump is receding a bit. While a re-run of last […]

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Bird’s-eye view: Airport infrastructure

Published: March 9, 2015

Aviation is broader than airlines The aviation sector extends beyond pure airlines as we traditionally think of them. Frequent-flyer programs, aircraft manufacturing and infrastructure are all examples of related sectors which are often quite profitable and are not so bound by external factors such as oil prices, which can heavily influence airline profitability. In fact, […]

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Global infrastructure and interest rate movements

Published: March 9, 2015

Infrastructure assets can have both bond-like and equity-like characteristics Infrastructure assets, particularly listed infrastructure companies, typically exhibit total returns that have some similarities to both equities and bonds. Some infrastructure assets will have revenue streams more similar to bonds, while others will have a higher equity comparable component. For example, the revenue a toll road […]

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Australia delivers good company earnings

Published: March 9, 2015

In summary: 55% exceeded earnings expectations (versus a norm of 43%); 66% have seen their profits rise from a year ago (in line with recent trends); and 62% have increased dividends from a year ago (also in line with recent trends). The better performers during the season were beneficiaries of the continuing low interest rate […]

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The Australian economy still in the doldrums

Published: March 4, 2015

Key points: Australian economic growth remains weak at 2.5%. Expect another one or two RBA cash rate cuts and the $A to fall to around $US0.70 by year end. Record low borrowing rates, the falling $A, lower fuel prices and rising wealth should help boost growth to 3% or just over next year.  The recent […]

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