SMSFs retarding growth in Australia: Credit SuisseBY LAURA MILLAN | WEDNESDAY, 29 JAN 2014 12:50PMSelf-managed super funds (SMSFs) "are retarding growth in Australia" by controlling much of the equity that could be used for new investment and demanding dividend increases instead. Related News |
Editor's Choice
Trust emerges as key drivers of super fund loyalty
Superannuation fund members are becoming more purposeful in their interactions with funds, while trust has emerged as the clearest driver of loyalty and advocacy, according to new CoreData research.
Maquire-led consortium acquires SI Solutions
Macquarie Asset Management (MAM) has agreed to acquire a majority stake in structural integrity engineering firm SI Solutions from private equity firm MidOcean Partners, alongside co-investors that include UniSuper.
GQG outflows worsen, ousted from ASX200
GQG Partners' continued slump in performance continues as net outflows for funds under management (FUM) stood at US$4.3 billion in August alone, and worse, the firm has been bumped out of the ASX200 index.
Tribunal affirms InterPrac, FSGA adviser bans
The Administrative Review Tribunal has affirmed ASIC's decisions to ban two former financial advisers from InterPrac Financial Planning and Financial Services Group Australia (FSGA) who were involved in the Shield and First Guardian master funds for five years.
Further Reading
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Sarah Shaw
GLOBAL PORTFOLIO MANAGER
4D INFRASTRUCTURE
4D INFRASTRUCTURE
It wasn't confidence that prompted Sarah Shaw to walk away from established investment houses and co-found 4D Infrastructure in 2015. It was something she believes is far more important: courage. By Vinny Vucago.
The Financial Standard podcast Tune in each week as we discuss the latest developments in Australia's wealth management industry. |  |
Isn't this just a reflection of an ageing and increasingly retired population that is more interested in income than growth?
It has actually been companies choosing to pay higher dividends as they view that expansionary measures are too costly at the moment. This is certainly true in the mining sector. Business expansion should only ever be targeted where it can be done at a profit.
The other reason for demanding income return along the way is that the investment market can be so volatile these days that you need investment return along the way, not just when you sell the asset.
Corporate bonds are a product subject to capital value movements whilst coupon returns are subject to RBA benchmarks. Also corporate bonds don't have the trading flexibility that shares do.