Market update

Brennan's prescription for surviving the financial crisis	20 November 2008
John J (Jack) Brennan chairman of The Vanguard Group is confident the investment industry will learn from the global financial crisis and emerge stronger and more accountable.

Reducing portfolio risk from the inside out	13 November 2008
The current market volatility has focused investors' attentions on portfolio risk control rather than return enhancement. Can you have your cake and eat it too?

Vanguard market update	7 November 2008
Central banks around the world are slashing interest rates in a bid to prevent a global recession, as the credit-crisis and financial market turbulence increasingly threaten economic growth.

More exposed or less exposed?	7 Nov 2008
While the global financial crisis has highlighted the vulnerability of international investment portfolios to stock and sector specific risks, it teaches us some important lessons.

Business as usual for Vanguard's Cash Plus Index Funds	30 October 2008
The Federal Government's guarantee of retail deposits and wholesale funding for Authorised Deposit-taking Institutions, namely banks, has raised questions about the liquidity of market-linked cash funds for many investors.

Retail fees not so super	23 October 2008
Higher costs are the major culprit for the underperformance of retail super funds against not-for-profit funds, according to a recent superannuation watchdog report.

Feeling panicky? Here are four reasons not to overreact	20 October 2008
When the market indexes plunge and your portfolio shrinks, it's natural to think about bailing out of your investments, particularly stocks. But before you head for the exits, consider four reasons why sticking with your investment plan, and resisting the temptation to sell, may be your smartest move.

Vanguard market update	17 October 2008
A week may be a long time in politics but it's proving to be an eternity on financial markets, as investors increasingly worry about runs on banks, global economic collapse and a deep recession.

Picking stocks a risky business in good times and bad	16 October 2008
Picking stocks is a risky business at the best of times. In the current global financial environment it's even riskier.

Aussie dollar's fall from grace	9 October 2008
After almost reaching parity with the US dollar the Australian dollar fell to its lowest level in five years this week, representing a fall of more than 25 per cent since its July high.

Rebalancing your portfolio in volatile times	2 October 2008
Market volatility can play havoc with your asset allocation and undermine the risk/return profile of your portfolio.

Vanguard market update	29 September 2008
Considering the extraordinary volatility impacting both credit and equity markets around the world, it is not surprising that investors will question how global market gyrations might affect their investments.

The long and short of it	26 September 2008
Last weekend the Australian Securities and Investment Commission (ASIC) made the bold move of temporarily banning all short selling transactions.

Just when you thought it was safe to go back in the water	19 September 2008
Another attack on the global financial system rears it's ugly head and has investors ducking for cover. At this stage it is difficult to speculate how many financial institutions in the United States will fall victim to the worsening credit crisis.

It all starts with the right asset allocation	11 September 2008
Research shows that asset allocation is the most important indicator of long-term investment performance.

Performance leadership is a cyclical thing	4 September 2008
A recent research report from Vanguard's Investment Counselling & Research Centre in the US aims to find out why performance leadership changes so dramatically.

Once bitten, twice shy	28 August 2008
Sharemarket volatility has bitten many investors over the past year. But for heavily geared investors struggling with drops in share price values, rising interest rates and margin calls the bite has been much more severe.

Volatile times - the great equalizer	21 August 2008
Everyone has their time in the sun so the saying goes. Well, the same can be said for asset classes. This financial year, it was international bonds time to shine with an annual return of 8.7 per cent placing it at the top of the major asset class performance tables.

Going for gold has its drawbacks	15 August 2008
Going for gold might not be the best strategy, unless you're champion Olympic swimmer Michael Phelps of course. The following table shows the medal tally for the best and worst performing asset classes over each of the last twenty financial years to June 2008.

Opportunity cost of switching assets can be high	7 August 2008
The thought of switching into less volatile assets would have crossed the minds of many equity investors of late. With the outlook for equity returns looking less than glamorous in the short term and high interest rates on offer in cash type investments, you can easily understand why.

A strategy for rising and falling markets	31 July 2008
The theory goes that active managers are more likely to outperform the index in falling markets. According to the latest Mercer Investment Consulting surveys the median Australian share manager outperformed the S&P/ASX 300 Index by 1.4 per cent. Of course these results omit one important component - fees.

The expectations-reality gap	24 July 2008
Up until November last year the Australian share market was enjoying an unprecedented period of low volatility. Some would say the recent market downturn is the correction we had to have with the last year being one of our more volatile.

Australians need to increase savings to fight inflation	18 July 2008
The Investment and Financial Services Association's (IFSA) recent research report found that an increase in national savings would lower short term interest rates by around 0.9 per cent in 2010-11.

Money for the taking

7 July 2008

Unclaimed super monies totalled more than $11 billion at the end of the 2006/07 financial year. According to research house Super Ratings, unclaimed super monies in eligible rollover funds (ERFs) are on the rise. ERFs are funds where super monies are transferred when a super fund loses contact with a member. An account is considered lost if contributions haven �™t been made in two years, fund statements have been returned or the member has reached their preservation age.

ASIC offers timely advice to super investors	7 July 2008
The Australian Securities and Investments Commission (ASIC) has recently issued a report on the importance of long-term performance for super fund members. The report complements ASIC's best practice guide on reporting longer-term returns for superannuation funds.

The financial year that was, or rather wasn't	3 July 2008
Australian shares put in their worst financial year performance for the last 25 years delivering -17.9 per cent to 30 June (based on the S&P/ASX 300 Index). Record high oil prices supported the Energy sector, which was the best performing sector delivering a return of 28.5 per cent. The Materials sector was the only other sector to deliver a positive return.

Transitioning to retirement	3 July 2008
Retiring is a major milestone in a working person'slife. While many people can't wait to hang up their working boots, or suit, for good others prefer to ease themselves into retirement while still being active in the workforce.

Congratulations, you've just given birth to a $5,000 bonus	26 June 2008
The baby bonus payment is set to rise on 1 July 2008 to $5,000 from $4,258. Until 1 January, this one-off payment will not be means tested.

Time to review your portfolio

20 June 2008

The end of the financial year is fast approaching. What better time to take stock of your investment portfolio to make sure it still aligns to your investment objectives and needs. Whether you are investing directly or using a financial adviser it �™s important that you review your investment strategy at regular intervals, particularly if your investment objectives or circumstances have changed.

New annual return requirements for SMSFs	12 June 2008
The Australian Taxation Office (ATO) will impose new reporting requirements on self managed super funds (SMSFs) from July 1 2008. The ATO's new SMSF annual return aims to reduce the compliance burden on trustees by combining the fund income tax return and regulatory return with the member contributions statements.

Getting the most bang for your buck	5 June 2008
Don't you just love tax? Not many people do, unless it works in their favour of course. According to the latest Russell/ASX Long-Term Investing Report Australian shares delivered the best after-tax and after-cost returns of all the asset classes over the 10 and 20 year periods to 31 December 2007.

Single digit returns aren't all that bad are they?	29 May 2008
As investors brace themselves for negative returns this financial year, many will be pondering what the future holds for their investments.

Government gets mean on salary sacrifice	22 May 2008
In its recent budget, the Government announced changes to the way salary sacrificing contributions will be treated for certain government benefits from July next year.

Make the most of your super contributions this financial year	15 May 2008
Topping up your super fund before 30 June can save you tax and boost your retirement savings. The Better Super changes introduced last year have made superannuation an even more attractive retirement savings vehicle for Australians.

Focus on retirement	8 May 2008
How you invest your super benefit can make a big difference to your lifestyle choices in retirement. With life expectancies and retirement costs of living on the increase, taking the time to research your retirement income options and seek appropriate advice is time well spent.

All is super in love and divorce, or is it?	23 April 2008
Apart from the emotional strains, divorce can cause a dramatic change in the financial circumstances and plans of those involved.

The power of positive thinking	17 April 2008
Even if red is your favourite colour, it's not something you look forward to seeing on your investment statement. Unfortunately, with the major equity markets delivering negative returns over the year to 31 March, it is something many investors will need to come to terms with this quarter.

Secret women's business	17 April 2008
The Australian Government's Financial Literacy Foundation has recently released a report on "Women understanding money". The report specifically focuses on women given the different financial circumstances women experience.

Secrets of successful investors	11 April 2008
Keeping a level head during the market turmoil of the last eight or so months is difficult, to say the least. For investors who have entered the sharemarket during the last six years, this will be their first experience with negative returns and many will be struggling to stay focused on the bigger picture.

Closing the knowledge gap - tips for SMSF trustees	3 April 2008
In a follow up from our story last week about the knowledge gap of some self managed super fund (SMSF) trustees, we've come up with our five top SMSF tips. These tips don't replace professional financial advice but give you an indication of things to consider when setting up and running an SMSF.

Eyes wide open or half shut	27 March 2008
The Government has raised its concerns that some self managed super fund (SMSF) trustees may not be as aware of their responsibilities and obligations as they should be.

A very taxing year about to get worse for some investors	19 March 2008
While tax is probably the last thing on investors' minds at the moment given the extreme market volatility, it could be a different story when they receive their tax bill this financial year. Vanguard's latest research reveals some investors could be facing capital losses and a tax bill.

The allure of higher cash rates	13 March 2008
With steadily rising interest rates and unstable sharemakets it's easy to see why some investors might be tempted to transfer their money into cash.

A question of style	6 March 2008
Just as there is a huge difference between high street fashion and haut couture both in price and quality the same is true of indexing.While indexing is often considered a single investment style not all index funds are managed the same way

Make the most of your retirement benefit while enjoying a regular income	29 February 2008
Account-based pensions offer control and flexibility over how you access your retirement income. They pay regular income payments to cover your day-to-day living expenses while giving you the flexibility to make larger withdrawals when you need them.

Australian dollar tackles greenback	29 February 2008
At the time of writing the Australian dollar had surpassed US 093 cents reaching its highest level in more than twenty years. Expectations of higher local interest rates, continuing strong commodity prices and soft US economic data have many analysts predicting the Aussie dollar will soon parallel the US dollar.

Alarm bells and whistles for conservative investors	21 February 2008
In times of market uncertainty many investors start to think about more defensive investment strategies. Perhaps we should spare a thought for the poor risk-averse investor who thought they were doing that all along, who is now facing the prospect of capital losses.

Worried about investment returns?	14 February 2008
Markets have been extremely kind to Australian investors over the past four and a half years. Up until now, most investors have had little reason to question their fund manager investment returns.

More money on the mortgage leaves less money to invest	7 February 2008
Or does it? The Reserve Bank of Australia raised official cash rates to seven per cent this week, pushing interest rates to their highest level since July 1996. The recent rise, the eleventh in the last five and a half years, puts even more pressure on Australian household budgets.

Fixed interest makes a comeback

7 February 2008

Fixed interest is an asset class that has been out of favour over the past few years as investors have flocked to the higher returns and yields on offer from assets like listed property trusts. However, recent market volatility and the collapse of the Centro Property Groups remind us of the importance of maintaining fixed interest exposure in a diversified investment strategy - especially a defensive one.

When the best action is no action at all	31 January 2008
It hasn't been a great start to the new year for investors. After twelve consecutive days of negative returns, the Australian sharemarket fell 7 per cent last Tuesday - its greatest single day fall since 1987.

Market update	23 January 2008
The falls across global stockmarkets means investors are dealing with a barrage of financial data and emotional messages the likes of which we have not seen for more than a decade

Market update	31 December 2007
The final quarter of 2007 provided mixed results to top off a volatile year. Investors experienced a volatilesecond half of the year with the impact of the US "sub prime" mortgage failures sparking a general repricing of risk.

Recipe for a prosperous new year	20 December 2007
It's approaching that time of the year when good intentions come to the fore and we start thing about new year's resolutions. Here are some seasoned investment resolutions to help kick your new year off on the right foot.

Financial services industry airs out its dirty laundry	13 December 2007
In the post September 11, world money laundering has become a global issue. In their 2007 Global Anti-Money Laundering Survey, KPMG estimates global money laundering flows exceeded US$1 trillion.

Investing in things you don't understand can be a dangerous pastime	13 December 2007
Speaking at the Australasian Finance and Banking Conference earlier this week, RBA deputy governor Ric Battelino highlighted the importance of adequate disclosure of financial risks to retail investors.

What do gold and property have in common ?	6 December 2007
Vanguard's Index Australian Property Securities Fund has taken out the gold award for the Best Australian Property Security Fund in Money Magazine's Best of the Best 2008. It's the second year in succession the Vanguard fund has won this esteemed award.

Bogle's book voted best finance and investment book of 2007	22 November 2007
Amazon's editors have voted John C Bogle's the best book of 2007 in the finance and investing category. Named one of the four investment giants of the twentieth century and one of the world's most powerful and influential people, Bogle was also founder and former CEO of the Vanguard Group and creator of the worlds first publicly available index fund.

Contracts for difference, or disaster?	8 November 2007
Its difficult to pick up a recent investment magazine without seeing contracts for difference (CFD) advertisements splashed across its pages. While CFDs have been traded by institutional investors in Australia for around 20 years under the equity swaps label, they first entered the retail arena about five years ago with the introduction of the Financial Services Reform Act.

Rate hike	7 November 2007
The muchanticipated rate rise has arrived with the Reserve Bank increasing the official cash rate by 25 basis points to 6.75%. This is the sixth consecutive rise since the 2004 election.

Betting on the field comes up trumps	1 November 2007
Frocks jocks and big bucks are synonymous with the Spring racing season. This year, horse influenza has cast a shadow over the proceedings, bringing the spring carnival in the northern states to a standstill and costing the racing fraternity millions .Tabcorp estimates the epidemic has cost them $240 million in turnover this year.

Desperately seeking property	25 October 2007
Performance tables make for interesting reading but some new research has found they can mislead as much as inform investors. The underlying flaw in performance tables - be they over one month, one year or seven years - is that the return numbers will not reflect the return that most investors actually receive.

Tax-effective investment strategies: Super versus nonsuper	11 October 2007
You don't have to be a rocket scientist to work out that the more tax you pay the less money you have to invest. But the impact doesnt stop there. Every time you earn income on your investments you also have to pay tax. So, the more tax you pay on your investments the less money you have to keep.

Market update	30 September 2007
Domestic shares were a standout performer during the September quarter. Here we wrap up the major indices for the period.

International debt securities - it's all about quality

28 September 2007

Over the last decade or so we have enjoyed a low inflation, low interest rate environment. This has caused many investors seeking income to invest in lower grade securities in a bid to earn higher yields. By their very nature these types of loans are made to higher risk debtors who have a higher chance of defaulting on their loan - exactly what has happened in the sub-prime market in the United States.

Super fund fees are falling but are they low enough	21 September 2007
The average expense rate for personal superannuation funds was 2.12 per cent at the end of 2006 down from 2.30 per cent in 2004, according to Rice Warners recent Superannuation Fees Report published on behalf of IFSA.

Not too late to convert assets into a tax-free retirement income stream	21 September 2007
The changing super rules provided impetus for a massive inflow of money into superannuation over the June quarter. In fact, total superannuation assets increased by 14 per cent or $72 billion over the June quarter - the highest quarterly increase ever recorded.

Why investing is a game of patience	6 September 2007
The recent volatility in world investment markets has given many investors cause for concern.

Company reporting season: behind the numbers	30 August 2007
Australian companies are currently in the midst of reporting their annual results for the 2006/07 financial year. Every company listed on the Australian Stock Exchange must lodge an annual report with ASIC within four months of their annual reporting date. Companies have different annual reporting dates, with some working on a financial year end and others on a calendar year basis.

Diary date 20 September: more income for retirees	23 August 2007
From September 20 the Government's Aged Pension assets test is changing. The changes mean many retirees will receive more in their fortnightly pension payment and more retirees will qualify for the Aged Pension than before.

Volatile markets time to get back to basics	16 August 2007
Taking a look at the front pages of the newspapers this week and it is easy to see why many investors panic when things go sour. Since reaching a peak of 6422.3 points three weeks ago, the Australian share market as measured by the S&P/ASX 200 Index has fallen almost 10 per cent. Technically a fall of 10 per cent is considered a market correction.

A strategy for life	9 August 2007
Everyone has different priorities at different stages of life. Whether your focus is climbing the corporate ladder or stepping down, starting a business, building financial security for you and your family or something else, investing can make the difference between achieving your goals and simply aspiring.

Great Australian dream or great Australian hoax?	9 August 2007
With housing affordability at a low, buying a home is becoming out of reach for many Australians trying to enter the property market for the first time.

What the strong Aussie dollar means for your investments	2 August 2007
At the time of writing the Australian dollar was worth 85 US cents down from its earlier high during the week of 88 US cents. While a strong Australian dollar is great when buying Plasma TVs, hi fi equipment and imported cars it isn't so great for Australian investors with overseas investment exposure.

Keeping a level head during market jitters	2 August 2007
The Australian sharemarket suffered its biggest single day fall in almost six years this week with the S&P/ASX 200 Index dipping 33 per cent.

Hedging your bets is risky business	26 July 2007
The recent collapse of hedge fund Basis Capital is a timely reminder about the dangers of having exposure to high-risk, low-quality debt investments.

What a difference 40 years makes	19 July 2007
Every five years the Australian Government releases an Intergenerational Report on our changing demographics and the impact on future policy directions. The latest report provides some interesting predictions about where we will be 2047.

Round up your super	13 July 2007
The Association of Superannuation Funds of Australia estimates that around 12 million Australians of workforce age have superannuation but 28 million accounts exist in total.

Bogle Bytes: Fund returns fact or grand illusion?	4 July 2007
If you asked people why they invest, most people would probably give performance as their primary response .As much as it is bad investment practice it is human nature to chase performance.

Market update	30 June 2007
The June quarter saw the brakes applied to most asset classes. Here, we summarise the key indices for investors - with Australian shares continuing to deliver respectable, though single digit, performance results.

Market update	31 March 2007
This last quarter has delivered a mixed start to the 2007 calendar year. We summarise the key indices for investors - with Australian shares continuing to deliver respectable results.