In recent years, ESG investing (also called sustainable, ethical or responsible investing) has taken a more prominent role in management and investment decisions. But what exactly does ESG mean, and how does it affect your investment portfolio? ESG stands for Environmental, Social, and Governance and is a way of measuring and assessing a firm’s sustainability […]
Currency Hedging
If your portfolio contains assets held in a foreign currency, there is a risk that returns might be impacted by fluctuations in exchange rates. As a result, it can be worthwhile knowing how currency fluctuations impact returns. But what exactly is currency hedging, and is it worth the extra costs? How do currency fluctuations affect […]
Super Recontribution Strategy
Although it may sound a little odd, taking money out of super and putting it back in can actually be beneficial by reducing the amount of potential tax you or your dependents may pay in the future. A recontribution strategy aims to increase the ‘tax-free’ component of your super account while reducing the ‘taxable’ amount. […]
Why Do Unit Prices Fall After 30 June?
Most managed investments including Exchange Traded Funds (ETFs) are offered by way of units in a unit trust. Units are to a unit trust what shares are to a company; they are the bits that fractionalise ownership. Unit prices often fall on the 1st of July when distributions are paid. Why does this happen? The […]
Term Deposits: The Upside of Higher Interest Rates
Rising interest rates bring many disadvantages to individuals in the economy – especially for anyone with debt – so it’s unsurprising that most of us approach the news of another rate hike with trepidation. But one key advantage of higher rates is the better returns on savings accounts and term deposits. Over the last 12 […]