by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Forward Thinking Magazine : August 2011
47 self managed super The number of clients buying directly into the US is growing because of the strength of the Australian dollar and the uncertainty in the Australian market. A number of brokers are now offering the functionality to buy international shares directly. Andrew Hamilton The move to cash has also been bolstered by the rates available in the marketplace with good returns on money in cash management accounts, term deposits and online savings accounts. This too is a direct result of the GFC. With the banks looking more to retail deposits for their funding, they have been paying higher rates to attract funds. However, Wright believes some of the heat is starting to come out of the market. Tim Farrelly of asset allocation consultants Farrelly's says the higher returns from cash are very timely. "Now it is easier to go for the lower risk," he says. "Say your client needed a 6.5 per cent return to meet their [living] needs and all their money was in equities. Over a 10-year period the return on equities couldbeaslowas2%paorashighas12%pa. If the client has a higher exposure to term deposits then the range of possible long term outcomes will be narrower, and your client would be more likely to meet their goals." Interestingly the swing to cash has not necessarily been to the detriment of equities. Wright explains this as reflecting the nature of SMSF trustees. "SMSFs are run by people who want to control their investments and so they tend to be more active [in the sharemarket]," he says. If you look at the Multiport figures, the allocation of monies to Australian shares in fact rose from 34.8 per cent in December 2007 to 41 per cent in 2011. The losers to cash have been international shares, property and what is loosely termed 'other' -- hedge funds, agricultural funds and private geared and ungeared trusts. Andrew Hamilton, Cavendish Superannuation