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Money Magazine

Money Magazine October 2020

Money magazine is Australia’s longest-running, highest-selling and most-read personal finance magazine. Money magazine provides credible, independent, easy-to-understand financial advice to help its readers save money and make the most of their investments.

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Rainmaker Information Pty Limited
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11 Edities

in deze editie

6 min
find the hidden gems

Australia is a country obsessed with blue-chip companies paying out consistent dividends – fully franked, thanks! These companies are so synonymous with dividends that, in some cases, they’ve carved out a spot in our national psyche. It’s hard to picture Sydney Harbour in your mind’s eye without a kangaroo flying overhead at 1000 feet or so. But a reality check is called for. We live in a world vastly different from the one that nurtured these companies to such revered status. Dividends have been sidelined as the blue-chip giants grapple with several seismic events that have dulled their appeal. First it was the banking royal commission, then the Covid-19 pandemic and the accommodative monetary policy that comes with it. Nor can investors look to traditional fixed-income investments, with interest rates and bond yields plumbing…

2 min

PERFORMANCE Small caps deliver the big returns Small-cap managed funds are streaking ahead of the competition, according to research by Rainmaker Information, which publishes Money. While the ASX Small Ordinaries Index returned only 6.5%pa over a three-year period, Lakehouse Small Companies Fund grew 26.2%, closely followed by the SG Hiscock Emerging Companies Fund at 19.1% and the OC Micro Fund with 18.6%. That’s not to say that leading big-cap companies have underwhelmed. Bennelong’s Australian equities fund generated a 13.6%pa return over the three years, followed by its Concentrated Australian Equities (12.4%) and Greencape’s Broadcap Fund (11.2%). BUY United Overseas Australia (UOS) The Intelligent Investor Mickey Mordech Few companies had balance sheets better prepared for the pandemic than United Overseas Australia, a property group operating mainly in Malaysia but listed on the ASX. Its interim result saw profits fall by…

3 min
one-stop shop makes it easy

There was a time – not all that long ago – when an investor had three options: pick your own stocks, send a cheque to a fund manager or buy shares in a listed investment company – basically an ASX-listed fund, of sorts, whose investment success (or failure) was roughly reflected in changes in the share price. Those were the days before listed funds known as exchange traded funds (ETFs). The first ETFs mirrored market indices: think the ASX 300 or S&P 500. But they don’t need to be. As long as you meet the ASX’s listing rules, these days it’s easy to start a managed fund and have it listed on the stockmarket, so that people can buy and sell it the same way they buy and sell shares. And,…

2 min
introducing atem mini

Blackmagic Design is a leader in video for the television industry, and now you can create your own streaming videos with ATEM Mini. Simply connect HDMI cameras, computers or even microphones. Then push the buttons on the panel to switch video sources just like a professional broadcaster! You can even add titles, picture in picture overlays and mix audio! Then live stream to Zoom, Skype or YouTube! Create Training and Educational Videos ATEM Mini’s includes everything you need. All the buttons are positioned on the front panel so it’s very easy to learn.There are 4 HDMI video inputs for connecting cameras and computers, plus a USB output that looks like a webcam so you can connect to Zoom or Skype. ATEM Software Control for Mac and PC is also included, which allows…

2 min
look after yourself in these challenging times

All insurers believe mental health is a priority impacting all Australians, according to Damien Mu, chief executive of life insurer AIA Australia. “Covid-19 has put us on the right side together to focus on what is important for our health and our mental health,” he says. “The issue of mental health is significant – it’s the largest reason for disability across the globe and one that has continued to grow. “In Australia, 45% of people will have an issue with mental health in their lifetime and one in five will have an issue every year. That’s us. It’s not ‘out there’ – it’s us, our colleagues at work, family, friends and other Australians.” Three million Australians are insured and the industry is seeing mental health claims, through income protection or TPD, increase year on…

2 min
how to play the value card

One of the raging debates in financial markets at the moment is about value versus growth stocks. The value strategy was made famous by the celebrated US investor Warren Buffett. The core premise behind value investing is buying an asset at a discount to its intrinsic or fundamental value – this way you’re buying with a margin of safety. Growth stocks tend to trade on very high multiples, with most of the cash flows from operations expected much later in future years. Firstly, everyone is a value investor – no investor actively seeks to overpay for an asset. The issue is that investors appear to believe value can only exist if certain characteristics are met, such as low price-to-book or price-to-earnings ratios. With respect to returns alone, growth has significantly outperformed value…