PE Capital Y Fund
Financial Report for the financial period from 27 June 2016 to 30 June 2017
In Tuesdays, Australian Financial Review there was an interesting article written by Sue Mitchell looking at the convenience/ petrol station model in Australia and its various players. Interestingly, the convenience sector is growing 3 times faster than the grocery sector which is why BP and Caltex are putting big bucks in to get a bigger share of the $20b market from Coles/ Express and 7Eleven.
Interesting reasoning from S & P re. their downgrading of the bank hybrids. Essentially it is “that government support would be unlikely to be extended to major bank hybrids and subordinated debt instruments”.
We certainly recall Mr Rudd announcing the Government Guarantee of bank deposits at the start of the last GFC.
And we further recall which bank deposit products were EXCLUDED from the Government Guarantee. I have listed some below:
So we think S & P’s reasoning is fair. The government has history in this regard. They won’t guarantee everything issued by the banks, just the key products.
Worth considering when it comes to portfolio allocation, especially in cash, TD’s and fixed interest.
CommBank SMSF Report released Monday 3 April 2017.
A new generation of SMSF investors is expected to disrupt the industry according to new research from Commonwealth Bank, conducted in partnership with the SMSF Association.
The CommBank SMSF Report shows a new generation of SMSF investors is breaking the stereotype of the experienced and financially confident professional or entrepreneur who makes their own investment decisions. The research identifies four types of SMSF investors, each with their own distinct motives and decision-making preferences: Outsourcer, Coach Seeker, Self-Directed Investor and Controller.
Marcus Evans, Head of SMSF Customers for Commonwealth Bank said: “As the sector has expanded and matured, SMSF members have become increasingly diverse.
"While all SMSF investors share a taste for independence and a desire to take control of their own financial destinies, each investor profile has a very different level of investment experience and confidence and therefore, very different advice needs.
“Our research shows a new generation of SMSF investors is destined to disrupt the industry. These are the Outsourcers and Coach Seekers, and together they make up 35 per cent of the SMSF market,” he said.
Andrea Slattery, Managing Director/CEO of the SMSF Association, said: “The research rightly highlights the importance of the right professional relationships and assistance between trustees and their specialist advisers.
“The level of technical knowledge and insights of the professional into the often complex world of superannuation is a critical part of that relationship. So too is practical assistance and guidance in the technicalities of the day-to-day running of their SMSF.
"It shows that those trustees of an SMSF who build this professional relationship in areas where they need assistance are more likely to perform better overall compared to those who do not have such a relationship, again demonstrating the value that the SMSF specialist brings to their clients.”
Mr Evans said 97 per cent of Outsourcers prefer to rely on finance professionals as advisers to guide their decision-making. They are also content to pay for the advice they need, with 88 per cent spending $1,000 or more a year on advice and 48 per cent spending more than $3,000 a year.
According to Mr Evans: “The growing pool of Outsourcers could potentially disrupt the market by requesting one-stop shop advice and administration services that take the stress out of active SMSF management.”
Coach Seekers are the other key potential market disrupters. They are moderately involved in managing their fund but seek the help of professional advisers to do so. Coach Seekers have the highest proportion of younger members, the highest number of females and are most likely to have set up their SMSF in the past two years.
"We expect to see an increase in the Coach Seeker type of investor in the SMSF market over the next few years,” Mr Evans said.
Controllers and Self-Directed investors are the two other investor profiles identified in the report and are more closely associated with the traditional perceptions of SMSFs.
“Controllers also have the potential to act as disruptors by demanding products that offer more individual control,” Mr Evans said.
The CommBank SMSF Report looks extensively at the motives and decision-making behaviours of the four investor types, and provides a reference point for investors seeking to understand and improve their investment decisions, as well as information for advisers and product providers looking to adapt their offerings to support the changing needs of SMSFs.
The clear majority of SMSFs use at least one professional adviser while around one in three seek help from multiple sources. SMSFs experience a higher satisfaction with their fund when they work closely with their advisers and rely on their technical knowledge and insights as well as practical assistance and guidance in the day-to-day running of an SMSF.
Mr Evans said: “As the SMSF market continues to grow and evolve, product providers and advisers need to adapt. If this new generation of SMSF investors are to access the products and advice they seek, the industry will need to create service offerings that are relevant to each of the investor types and account for their unique preferences.”
Knight Frank’s director of service stations Jason March said there was now a ”strong appetite” for them among big and small investors.
“The appeal to investors in recent years has been underpinned by long-term lease covenants, with fuel companies providing stable income with relatively low costs associated with these assets,” he said.