[Smart Investing] Super changes

Investments and personal finance insights from Vanguard Australia

12 February 2020 Hi everyone, This week's Smart Investing examines the recent changes to superannuation legislation and also outlines upcoming changes that you should be aware of. We also discuss hybrid securities and explain the significant risks for investors using them to generate income. Finally, we've included an article from Vanguard's Head of Investment Strategy, Aidan Geysen, who discusses the steps an investor could take to prepare one's portfolio against a potential market correction. As always, feel free to email us with your questions or feedback. Until next week. Robin Bowerman Head of Corporate Affairs Vanguard Australia

Super changes By Robin Bowerman The superannuation system is fundamental to most people's retirement plans, and the health of the economy. For something that important, why do the rules change so often? Read more

Are hybrids a yield stretch too far? By Tony Kaye Interest rates are already at record lows, and there's the strong prospect of further easings in monetary policy this year as central banks around the world endeavour to stimulate economic growth. Read more

Now is the time to rebalance By Aidan Geysen Short of the ability to predict the future, there is no reliable tactical strategy to capture the potential for a market correction. But what an investor could do to prepare one's portfolio against the downturn is to revisit the appropriateness of your investment strategy. Read more

Vanguard in the news Time to be smart about yield Professional Planner | Jessica Sier | 4 Feb 2020 Where once a portfolio could offer risk-free high returns in the vicinity of five per cent through term deposits and fixed-interest assets, dampened yields and interest rates at an all-time low mean these same assets are now struggling to offer two per cent. "Chasing income on a standalone basis often leads to many portfolios coming unstuck," says Balaji Gopal, head of product strategy for Vanguard Australia. To read more, please visit the Professional Planner website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

In case you missed it Does your mind help or hinder your investment success? By Robin Bowerman Of all the decisions we make, investments ought to be the most rational. However, as with so many things in life, our emotions often get in the way of this rational approach. Read more Chasing alpha By Robin Bowerman It is certainly is possible to 'beat the market' - but, luck aside, it involves considerable skill and often taking on a higher level of risk. Read more

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