ATO - Key message for Self Managed Super Fund Trustees

If you are a new trustee (or director of a corporate trustee) of a self-managed super fund (SMSF), you must complete and sign a Trustee declaration (NAT71089) to show you understand your duties and responsibilities under super laws.

You must also complete the declaration if you are a legal personal representative who has been appointed as trustee (or director of a corporate trustee) on behalf of a:

• member who is under a legal disability (usually a member under 18 years old)
• member for whom you hold an enduring power of attorney
• deceased member

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Want to live in Australia and have AUD$5 million to invest?

Background

In 2012 the Australian government introduced a Significant Investor Visa program as part of the business and investment program to encourage migrants investment in Australia.

Main Points:

• You will be be invited to apply for a Provisional Significant Investor Visa
• You have to invest a minimum amount of AUD$5 million in ‘complying’ investments
• There is no upper age limit or need to meet a point test;
• And there are no reduced requirement requirements

If you satisfied the necessary criteria for a period of 4 years, the opportunity may arise to apply for a permanent significant investor visa.

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Oliver's Insights - Japanese reflation

This note takes a closer look at monetary reflation now getting underway in Japan. The key points are as follows:

• While it likely still has more to do, the Bank of Japan is on a path towards major policy reflation for the Japanese economy.
• This is likely to see further downwards pressure on the yen and strong gains in Japanese shares.
• It is also positive for the global economy as Japan will likely no longer be a drag on global growth going forward.
• While Japanese monetary reflation adds to upwards pressure on the Australian dollar, a stronger Japan will be positive for Australia overall as it remains our second biggest export market.

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Oliver's Insights - 2013 and beyond - a list of lists

This note provides a summary of key views on the economic and investment outlook in simple point form. The key points are as follows:

• 2013 is likely to be another good year for investors underpinned by a lessening in tail risks, very easy global monetary conditions and improving global growth. 
• Watch global business conditions purchasing managers' indices (PMIs), European bond yields, Chinese money supply growth, the Australian dollar and Australian housing indicators.
• Australia will likely continue to grow, but could go through a rough patch as mining investment slows, before picking up pace during the second half of the year.
• There is always a cycle and investors should avoid the crowd. Right now the cycle is moving away from cash and bonds in favour of equities and growth assets. 

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What investors are asking advisers - and the answers

Tom Stevenson, Investment Director at Fidelity Worldwide Investment helps to answer some of the questions asked by investors:

Questions:

• How does the situation in Europe affect investments?
• What will happen if Greece falls out of the euro?
• How can I reduce the risk in my portfolio while still achieving my goals?
• Should I stay in cash, and how much money should I keep there?
• What is the right mix of growth and defensive assets in this environment?
• Should I stay in shares?
• Should I reduce my holdings of growth investments?
• Can shares play a role in providing me with income?
• How can I get more income from my investment portfolio?
• Will the market recover to its 2007 levels?

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US FISCAL CLIFF DEAL: A STOPGAP, NOT A SOLUTION

Analyzing a Last-Minute Agreement - issued by BlackRock Investment Management (UK) Limited

Highlights:

• The 11th-hour deal is better than nothing... but its limited scope and the need for additional negotiations will likely translate into increased volatility for financial markets. Expect more late-night drama from Washington in the coming months.

• Higher payroll taxes will likely depress US consumer spending in the short term. This could result in a drag on the US economy early in the year. We expect a rebound later in 2013, but believe gross domestic product (GDP) growth is unlikely to exceed the 2% annual rate we have seen in recent years

• For equities, we prefer US mega-cap companies and non-US stocks (especially emerging markets, but also exporters on Europe's periphery). Dividend stocks look attractive, especially those companies that are cash-flow rich and have a track record of increasing payouts.

• Within fixed income, we like to focus on credit sectors - including high yield and emerging market debt. US Treasuries look dangerous with yields low and duration risk high.

 

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Oliver's Insights - The US fiscal cliff, debt ceiling & economic oulook

Key Points

• The US deal to avert the fiscal cliff combination of tax hikes and spending cuts is not the long term "grand bargain" that could have been hoped for to address America's long term budget and debt problems.

• Such issues will come up again in February in negotiations to raise American's debt ceiling, possibly resulting in another bout of market volatility around then.

• However, by scalling back the bulk of the huge recession threatening fiscal cutbacks that would otherwise have occured this year, the fiscal cliff means that the US economy will likely be able to pick up speed to around 2.5% helped in particularly by a housing recovery.

• This great news for the global economy and growth assets such as shares

 

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