| Hi Aris, Welcome to this week's edition of Smart Investing. Vanguard’s core purpose, right from when we were founded nearly 50 years ago by the late Jack Bogle, is ‘to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success’. And that’s why we are leading the charge for greater transparency on superannuation fees. Last week we issued a media release, "Confusing fees: Most Australians don't realise what they're being charged by their super fund". You can read it here. In our lead article this week, Vanguard Senior Personal Finance Writer, Tony Kaye, looks further into the hidden super fees problem and outlines the types of fees some super funds are charging their members, including investment performance fees and transaction costs on top of administration fees. Read his article to find out how you can see what your fund may be charging you in fees and other costs. Meanwhile, in what is a major development for many Australian investors, APRA has recently sounded the death knell for hybrid securities. This is in the wake of several recent offshore bank failures. The regulator now wants issuers such as banks to phase hybrids out and switch to cheaper and more reliable forms of regulatory capital. Where does this leave investors? Our article explains the next steps, and why high-quality bonds are a logical alternative. Lastly, our global economics team provides its latest forecasts for interest rates, inflation, employment and financial markets in Australia, the United States, China, the Euro area, the United Kingdom, emerging markets, and Canada. |
