-
Vector Insights29 July 2021
The China puzzle
Arian Neiron, CEO & Managing Director - Asia Pacific
In 2020, China was the standout equity market, yet chances are if you were invested in Chinese shares via exchanges not on the Chinese mainland your returns may not have matched the local bourses’ return. Technology stocks have been subject to regulatory demands and high profile episodes such as the non-listing of Ant Financial has weighed on investors’ sentiment.
Into 2021, there has been a popular narrative that there is a large, coordinated regulatory push in China. That narrative is easy to sell in today’s 24-hour news cycle, but there is more to China’s apparent regulatory extension. An understanding of underlying mechanisms can help foreign investors navigate their exposure to what is becoming the world’s largest economy.
Vector Insights16 July 2021
Avoid tax-time dinosaurs
by Michael Brown, Director, Operations & Finance
Read This NowYou may have had the recent experience of receiving a huge 30 June dividend from a fund. Maybe you’re in a fund investing in so-called ‘income assets’ and it has not paid a dividend. Either way, if you have experienced either of these events in the past few years there’s a good chance your fund manager has not modernised to take advantage of new tax rules.
Jarringly high dividends and skipping dividends are relics of an old tax regime. While no tax laws are being broken, your fund manager, to whom you pay a management fee, has not updated for tax rules changes.
There are two simple questions you can ask your fund manager if you had a nasty surprise this past 30 June to make sure it does not happen again.
Vector Insights02 July 2021
Goldilocks learns an investment lesson
by Brad Livingstone-Foggo, Head of Marketing - Australia
Read This NowWe all know the story of Goldilocks and her experience at the Three Bears’ cottage. She complained when the chair was too big and she complained when it was too small. She complained when the porridge was too hot and she complained when the porridge was too cold. Then there was that incident with the bed. For Goldilocks, the middle is her ‘sweet spot’. While aiming straight down the middle has its advantages, investors sometimes need to be more nimble.
Vector Insights18 June 2021
The lessons of crises.
by Brad Livingstone-Foggo, Head of Marketing - Australia
Read This NowHamilton, the musical, recently had its Australian premiere in Sydney and a Melbourne season has been announced. It is based on the life of Alexander Hamilton, the first Secretary of the Treasury, who was responsible for the economic policies of Washington’s administration.
It was during George Washington’s first term that a battle of words captivated the public as a series of back and forth essays (way longer than Twitter’s 280 characters) appeared in the press about executive power, debt and the central bank. The ‘trolling’ included personal barbs between Hamilton and future President Thomas Jefferson. When in power, Jefferson didn’t force the closure of Hamilton’s First Bank of America; that was President Madison.
The current incarnation of the US Federal Reserve System emerged prior to World War One after the ‘Panic of 1907’. Since then it has been a key player during periods of economic turbulence. And while central bankers throughout history have played from different playbooks in response to crises – the lesson for investors in a crisis is a simple one.
Vector Insights04 June 2021
The next Boomers
by Russel Chesler, Director, Investments & Portfolio Strategy
Read This NowFor much of our lifetime there has been one group of consumers that has driven commerce and world markets… Baby Boomers. But Baby Boomers are getting older and their influence is being usurped. There is a new world order, and in this new world a younger generation will drive global commerce and equity markets.