SMSFundamentals

As low interest rates have underpinned borrowing, corporate debt issuance has surged and, Janus Henderson Investors highlights, these instruments can provide more certain returns compared with shares

Australian super accounts have taken massive hits throughout the coronavirus pandemic highlighting the lack of knowledge the average Australian has about how their super fund works.

Market volatility has sparked a surge in ETF interest from investors as traditional funds managers suffer outflows.

Exchange traded funds are becoming more popular as investors seek alternatives in a low-yield world.

Investors are increasingly using Exchange Traded Funds to build diverse portfolios across asset classes and the industry had a big year in 2019.

Recent data show an increasing interest in exchange-traded fund investment from millennials, while defensive ETFs have risen in popularity, along with international offerings.

October saw strong demand for Australian fixed income ETFs, while in the US, investment in passive equity ETFs has outstripped that in active ETFs for the first time.

Superannuation fees charged to members have fallen for the first time in six years, while funds are using their negotiating power and paying less to external asset managers.

With term deposit rates around 1.5%, the ten-year bond rate at 0.9%, inflation at 1.6% and stock market volatility ever present, where can one invest for both safety and income in today’s interest rate environment?

A new report reveals what investors may already know, that “fees make all the difference” to final outcomes for superannuation members’ retirement savings, with many funds struggling to generate returns strong enough to cover the negative impact of high investment fees.